The Reserve Bank of India (RBI) had approved the application filed by PayTM for forming payments bank. Previously, the country’s governing bank has given an ‘in principle license’ directly to the CEO Vijay Shekhar Sharma. The latest development is that the final license has been granted. Hence, the digital wallets company will be able to commence operations of the Payments Bank within the next couple of bank.
After the commencement of operations, PayTM will migrate its wallet based system into the new Payments bank. Moreover, you will be able to move the balance from the PayTM wallet to the newly formed bank account until January 31, 2017.
After the official launch of the Payments bank, you will be able to transfer funds between the wallet and the Payments bank account free of charge. If you are not willing to accept the change, you can opt out by establishing contact with PayTM customer care.
PayTM acquired the banking license when other competitors such as Reliance Industries, Vodafone, Airtel are also on the same page for obtaining the required banking license. According to unconfirmed reports, PayTM will offer 14.5% interest rate for the accounts under their Payments bank. If you compare the interest rates with other banks, PayTM will have a slight edge. But you should be careful while investing in high-interest deposits.
According to industry analysts, PayTM will offer high-interest-rate, to begin with to attract more customers. In a statement released to the press, PayTM CEO Vijay Shekhar Sharma disclosed that the main aim of the Payments Bank is to nurture a new business approach and model in the banking industry. Furthermore, the new bank will be focus on bringing financial services to 100’s of millions of unserved or underserved Indians.
Sharma added that with the power of new technology and innovation-at-scale, the company is gearing up to set new benchmarks in the banking segment. As of this writing, we don’t have any information about the products and offerings of the new bank.
