Image result for paytm bankAs per RBI press release (Press Release : 2016-2017/3148) Paytm is payment bank now.

Interest rate

The newly launched Paytm Payments Bank is offering 4% interest rate on savings account. Its competitor Airtel Payments Bank is giving 7.25% interest on deposits in savings accounts, while India Post Payments Bank is providing 5.5% interest on deposits depending on the amount.

Paytm Payments Bank’s interest rate is in line with all the large commercial banks, including State Bank of India, Bank of Baroda and ICICI Bank Ltd, which continue to offer 4% interest rate on savings account deposits. Some of the smaller banks, including Yes Bank Ltd and RBL Bank Ltd, offer 5.5-7.1% interest rate on savings accounts, depending on the deposit amount.

India Post Payments Bank is offering three kinds of accounts: one regular and two basic savings bank deposit accounts.

Date : May 23, 2017
Paytm Payments Bank Limited commences operations

Paytm Payments Bank Limited has commenced operations as a payments bank with effect from May 23, 2017. The Reserve Bank has issued a licence to the bank under Section 22 (1) of the Banking Regulation Act, 1949 to carry on the business of payments bank in India.

Shri Vijay Shekhar Sharma was one of the 11 applicants who was issued in-principle approval for setting up a payments bank, as announced in the press release on August 19, 2015.

Alpana Killawala
Principal Adviser