Paytm is in the process of converting its mobile wallet into a dedicated Payments Bank which was officially announced yesterday. This means that the users who access Paytm on a regular basis are in for a couple of major changes, mostly pertaining to handling Paytm.
The good news is that some of the hidden fees and charges that exist on the standalone version of the wallet will no longer be applicable as Paytm is a full-fledged RBI approved Payments Bank now. You can request for an invite to open a Payments Bank account from Paytm’s official page here.
Here are five must know things about Paytm’s newest venture:
It’s pretty much like a bank
While there is some vagueness about the term “Payments Bank”, it’s pretty much like a bank. Paytm will offer 4% interest on your savings every year, meaning this is no different from a regular bank. The interest rates are on par with some nationalized banks, though. Airtel is currently offering 7.5% interest on deposits, so Paytm clearly has a lot of catching up to do.
Zero balance requirement
Since it’s like a bank account now, users might be wondering about the minimum balance required on the account. Well, you’ll be pleased to know that it is a zero balance account, giving you the liberty to load up cash as you see fit.
No fees on transactions
If you send money from Paytm to a bank account right now, you will be charged a 2% transaction fee for the transaction. Well, this will no longer be a concern with the Paytm Payments Bank as you can send money via IMPS, NEFT, and RTGS without any extra fees.
Chequebook, Debit Card, Demand Draft available soon
Paytm will also issue debit cards, chequebooks, and demand drafts via its Payments Bank very soon. Users will be charged a nominal fee for the same, which is in line with other banks.
Exciting cashback promos on deposits
Paytm is immensely popular for its cashback promotions. The company understands this pretty well, and is offering a cashback of Rs 250 on every deposit of Rs 25,000 or above on your Paytm Payments Bank account. The cashback is only valid four times per month. The promotion is subject to change without prior notice, so this could well be an introductory offer.