Paytm on Tuesday unveiled the Paytm Payments Bank becoming the first bank to offer cashbacks on deposits.
Customers will also be offered zero charges on all online transactions and no minimum balance requirement.
The Payments Bank plans to roll out 31 branches and 3,000 customer service points in the first year.
For savings accounts, it will offer an interest of 4 percent per annum. It will also offer current accounts to its millions of merchants.
Paytm Payments Bank accounts will initially be available on an invite only basis. In the first phase, the company will roll out its beta banking app for its employees and associates. Paytm customers can request an invite by going to www.PaytmPaymentsBank.com or on the Paytm iOS app, said a release issued by Paytm.
Paytm Payments Bank will offer Rs 250 cashback to customers depositing Rs 25,000 to Payments Bank account.
Vijay Shekhar Sharma, Chairman, said, “RBI has given us an opportunity to create a new kind of banking model in the world. We are proud that our customer deposits will be safely invested in government bonds, and be used for nation building. None of our deposits will be converted in to risky assets”.
Renu Satti, CEO, Paytm Payments Bank added, “We are very excited to launch Paytm Payments Bank and bring financial services to unbanked segment of Indians. Our ambition is to become India’s most trusted and consumer-friendly bank. Leveraging power of technology, we aim to become the preferred bank for 500 million Indians by 2020”.
The company is aiming to replicate this success in the banking sector and further drive cashless transactions with the Paytm Payments Bank. The current Paytm Wallet will move to the Paytm Payments Bank in the same capacity. Users will continue to be able to use their Paytm Wallet in the same manner as before, the statement said.