Paytm Payments Bank aims to become the world’s largest digital bank with 50 lakh accounts. The mobile-first bank has planned an investment of $500 million in know-your-customer (KYC) operations.
On Tuesday, it was formally launched in the capital by Paytm founder and CEO Vijay Shekhar Sharma, who owns a majority stake in the company. The remaining share is owned by the Alibaba-backed One97 Communications. “We want to become a complete financial services company, offering everything from insurance to share trading,” said Sharma.
Finance minister Arun Jaitley, who was present on the occasion, said, “Earlier, we perceived banks to be brickand-mortar branches. In fact, my fraternity in politics is still reasonably behind times. I still get representations during Parliament session from my colleagues who only insist on brick-and-mortar branches to be opened in their constituencies.”
Paytm Payments Bank will provide zero balance accounts and zero digital transaction charges to its users, who will be able to withdraw cash from any ATM, the company said. It will offer a digital debit card and offer a 4-7% interest rate on savings account, and up to 7% on a linked fixed deposit.
Payments banks can accept deposits but cannot lend.
URL Link-https://retail.economictimes.indiatimes.com/news/e-commerce/e-tailing/paytm-aims-to-make-e-bank-no-1-in-digital-space-globally/61843857
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