Vijay Shekhar Sharma, CEO of Paytm officially announced the launch of the most awaited service, Paytm Payments Bank, whose services were already available to everyone via the latest update to the Paytm app. In the additional announcement about bank’s online services, the offline presence goes live as well. The launch event was witnessed by Finance Minister Arun Jaitley, Sharma also mentioned about the outlines of how the bank will grow and shared some details about the progress made over the years. Just to reconfirm, the Paytm wallet and the Paytm Payments Bank are two separate entities and have different functions altogether. Wallets will continue to operate, but if you already have the mobile app to manage your wallet, you can use the same to manage your bank account as well, if a user wants to open one. The wallet operates separately from the bank account, they are not linked with the personal and confidential detail of the user so you can continue to use the wallet without any change, even if you create a bank account.
During the event, Finance Minister Jaitley stated the importance of a digital platform which has made access to banking systems simpler for everyone and what are the benefits and advantages, he quoted “new chapter in history being written, with every day, some such initiative is taking place, which helps make the economy more formal.”
Chief Executive Officer of Paytm, Vijay Shekhar Sharma addressed by saying that the amount was actually 4 percent to 7 percent. “Your savings account gets 4 percent, like any other bank, but we have a swipe-in FD where there is zero fee for creation or breakage, and customers can look at it as a long term saving product, and that is paying at 7 percent.” He further added, “Paytm ka ATM – is a human you can go to, take the money, deposit, with your thumb or card, and on day one of the launch, we will have 100,000 distribution points of Paytm ka ATM, that is a business correspondent led banking model. Today we have 1.2 lakh biometric devices, where you can do a KYC. We are doing more than 50,000 KYC a day, Aadhaar has been a boon to us.”
Previously in May, The Paytm Bank officially opened its services for all its users. There are some differences between payments banks and mobile wallets, these accounts have the similar design which can be easily managed digitally, with a Rs. 1 lakh limit on the deposit. However, payments banks have a service to offer debit cards and pay interest on the money deposited in the account.