Paytm Payment Bank offers debit card with capability to ATM withdrawal and 4% interest rate per annum
Online wallet service provider Paytm has launched its much awaited Payments Bank in India. With this, the company is transferring its wallet business to the bank. Also, the Paytm Payments Bank will offer 4% interest rate per annum. Also, the Paytm Payments Bank will offer debit cards, with which the users will be able to withdraw money from ATM and spend the money as well, just like the regular bank debit cards.
It has been a big question that which is going to win the war, Paytm Payments Bank or the Airtel Payments Bank. Interestingly, Paytm Payment sBank offers only 4% interest per year compared to Airtel’s 7.5%. With the Paytm Payments Bank issued debit card, the consumers can withdraw money five times for free at any non-metro ATM, while for the metro ATMs the number of free withdrawal is limited to three times.
After the free limit is over, consumers have to pay a Rs. 20 charge for each withdrawal, while for other transactions like balance checks will cost Rs. 5. However, Paytm Payments Bank won’t be able to issue any credit card to its consumers. Interestingly, there won’t be any minimum balance requirement for the consumers of this bank and online transactions like IMPS, NEFT or RTGS will be free of cost.
To lure the consumers towards using the Paytm Payments Bank’s service, the company is offering cashback on deposits. If an user deposits Rs. 25,000 to his account in the bank, then Paytm will give him or her a cashback of Rs. 250 (1% of the deposit value) up to four times.
Currently, Paytm Payments Bank is not open to use. But the company is offering usage on the basis of invitation. The interested users can request an invite to get an account in the Paytm Payments Bank. Also, it is not clear yet, if the newly formed bank will open branches or not.