Digital payments firm Paytm has launched its payments bank operation on Tuesday, aiming to acquire 50 crore customers in the next three years, the company said in a statement. Paytm, which runs India's biggest electronic wallet, said it will offer cashback on deposits, becoming India's first bank to do so. "Every customer to open a Payments Bank account will get a cashback of Rs 250 as soon they bring deposits of a total of Rs 25,000 in their bank account," Paytm said in a release.
Paytm offers zero charges on all online transactions and no minimum balance requirement on payments bank account. "This account has been designed to help achieve financial inclusion in our country, in line with Paytm's mission of bringing half a billion Indians in to the mainstream economy," the company said.
For savings accounts, the company would also offer an interest of 4 per cent per annum.
"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," Vijay Shekhar Sharma, chairman, Paytm Payments Bank said in the statement.
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, the digital wallet company said.
Disclosure: Paytm's parent company One97 is an investor in Gadgets 360.
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