Arun Jaitley launches Paytm Payments Bank

Union Finance Minister Arun Jaitley launched 'Paytm Payments Bank' here on Tuesday

The bank will not levy fee for online transactions; no minimum balance requirement

New Delhi, Nov 28

A new Payments Bank 'Paytm Payments Bank' was formally launched at the hands of the Union Finance Minister Arun Jaitley here on Tuesday.

Speaking at the launch event, Jaitley said that a new chapter in history has been written with the launch of this new Payments Bank. "This expands the horizon of financial inclusion in the country", Jaitley said. Almost everyday some such initiative is being undertaken and leading to greater normalisation of the economy, Jaitley said.

Jaitley said that the chain reaction is visible now and the habit of dealing only in cash is gradually changing. "We are all nudged into system where convenience and security requires switchover", Jaitley said.

Setting up ATMs

Vijay Shekhar Sharma, Non-executive Chairman, Paytm Payments Bank, said that Paytm Payments Bank is working towards setting up physical ATMs in the country.

In last two years, Paytm has invested ₹5,000 crore in payments and financial services space (does not include commerce side), Sharma said. In the next two years, another ₹5,000 crore will be invested in the same segments, he added.

Currently, India has four Payments Bank including Paytm Payments Bank. The other three operational ones are Airtel Payments Bank, India Post Payments Bank and Fino Payments Bank.

A payments bank is a differentiated bank. A customer can open a savings bank account in them and have deposits of upto Rs 1 lakh. These banks cannot however lend money to their customers.

Billed as India's only mobile first bank providing zero balance accounts and zero digital transaction charges, Paytm Payments Bank also provides free personalised RuPay digital debit card.

Also, every online transaction (such as IMPS, NEFT, RTGS, UPI) will be free of charge. One could also withdraw cash from any ATM.

Published on November 28, 2017

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