Paytm Payments Bank: 4% Interest, Free Virtual Debit Card & Everything Else
Paytm Payments Bank is officially launching in India today ( 23rd May 2017). As we have mentioned earlier, Paytm Payments Bank is not a traditional bank, it is more of a transactions bank rather than a depository bank. Paytm revealed quite a few details of this bank before the launch, and we sum up everything here for the benefit of our readers.
Before we get into details, please understand that Paytm Payments Bank will be available on an invite-only basis. In the first phase, they will roll out the beta version of the banking app for Paytm employees and associates. However, you can request an invite by logging onto www.paytmpaymentsbank.com or through the Paytm app (please upgrade to the latest version of the App to request an invite).
Also, as per Banking rules, all PPB account holders will need to do a KYC (Know your customer) before they open an account – To facilitate this, Paytm is opening up KYC centres all across India.
What Kind of Accounts/ Services Can you Get with PPB?
You can open Savings as well as a Current account with PPB. Also, in future PPB plans to offer a range of financial services such as Insurance, Loans, Mutual Funds offered by partner banks with the seamless Paytm experience.
What Happens to your Existing Paytm Wallet Account?
Your current Paytm Wallet will now move to the Paytm Payments Bank Limited in the same capacity i.e. KYC wallet as KYC wallet and minimum KYC wallet as minimum KYC wallet. You continue to use the Paytm Wallet as before without any changes.
However, if you have not used your wallet in the last 6 months and you have zero balance, you will be required to log in to your wallet again to move to the Paytm Payments Bank.
Will your Paytm Wallet get converted into a Bank account?
No, your wallet will simply operate under the Paytm Payments Bank and continue to exist and function in the same manner as earlier. However, if you chose not to migrate to Paytm Payments Bank, your wallet will be closed and you will not be able to make payments using your Paytm Wallet. Also, your Paytm Wallet balance will not get interest unlike if you have a PPB account.
What Are the Interest Rates of PPB?
While many expected that Paytm Payments Bank (PPB) would initiate an interest rate war by announcing much higher interest rates, that is not to be – PPB will offer 4% interest on savings account which, at best, is par for the industry. Traditional banks are sure to leave a sigh of relief. They did not want Paytm to do to Telecom Industry, what Jio did to the Telecom space!
What are the Transaction Charges of PPB?
Paytm Payments bank is a transactions bank and so any online transaction is done on PPB will be completely free. In fact, PPB claims that they are India’s first bank with zero charges on online transactions, no minimum balance requirement and free virtual debit card. Also, online and email statements are free. However, if you need an offline statement it will cost you Rs. 50 + delivery charges.
If you want to make online transfers to other banks or individuals it is completely free irrespective of whether you use IMPS, NEFT or UPI.
Will PPB Offer ATM Withdrawals? If Yes, What are the Charges?
While all the online transactions are free, offline transactions ( like ATM withdrawals) will attract charges after few free transactions. For Metro locations, 3 transactions are free, post that every ATM transaction will attract Rs. 20. For non-metro locations, 3 transactions are free, post that every ATM transaction will attract Rs. 20 per transaction.
PPB Debit Card
For online transactions, PPB will offer a virtual debit card. They will also offer Rupay Debit Card to customers for offline use, which will come with a yearly subscription of Rs. 100 + delivery charges. If you need a cheque book, the price is the same ( Rs. 100 + delivery charges)
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