Paytm is set to open brick-and-motor banking institution in India, which will be opened as early as next year.
RBI had granted payment bank license only last year, along with Reliance, Airtel, Vodafone and a few more.
Users’ Paytm bank account will be connected to their Paytm wallet and can be opened with the initial deposit of INR 5,000.
However, the most interesting and attractive information about the Paytm bank is the interest rate which will be 14.50% per year. No other bank offers an interest rate of 14.50% or close. Kotak Mahindra offers maximum interest among others which is 6%.
The interest rate will be USP of the Paytm bank and will attract a maximum number of users.
Also, Paytm bank will be providing cashback of INR 60 every month for a year, that means a user will get INR 720 by the end of the year. The amount will be transferred to the customers’ Paytm wallet.
Other benefits include insurance and systematic investment schemes will be offered by the Noida-based company in partnership with Reliance.
Paytm CEO Vijay Shekhar Sharma had stated back in June that they are in the final process of completing the formalities and handing over the final applications to the RBI. He had added that the company is looking at network banking but in a different way.
If the Paytm opens up a bank, it would become the first e-commerce company to start from a website and end up establishing a bank.