Paytm recently launched their payments bank and currently there are four payments bank in India- Paytm Payment Bank, Airtel Payment Bank, India Post Payments Bank and FINO Payment Bank
Ever since Digitalization has taken the centre stage Banking and all other kind of financial services has made its presence in the digital space which is on increase every day. Ofcourse introduction of payments bank is one of them. The payments bank is like normal banks, perform almost all banking operation but do not provide any credit facility. They function in a small business scale as compared to other banks. Paytm recently launched their payments bank. There are four payment banks in India viz Paytm Payment Bank, Airtel Payment Bank, India Post Payments Bank and FINO Payment Bank. Let us see as to how they differ from other banks.
The standard SB Interest rate for commercial banks range from 3.5 – 6%. As of now, Airtel payments bank is giving the highest interest rate of 7.25% which is a very attractive rate compared to other commercial banks. Paytm’s bank offers an interest rate of 4% on savings account and 7% on FDs whereas, India Post payments bank is offering between 4.5 – 5.5% for savings account.
Most banks levy a charge on its customers in case one fails to hold a minimum balance in their account. Among payment banks, Paytm payments bank came up with zero balance account where no minimum balance needs to be maintained and without any charge. Few banks and digital banking system has also come up with this but most bank charges for not maintaining minimum balance.
For online transfers, India Post payments bank charges Rs. 5 for IMPS and NEFT is free of cost. For online transfers within the bank Airtel payments bank doesn’t charge anything otherwise it charges 0.5% of the transferred amount. For every online transaction Paytm payments bank is not charging anything, all fund transfer services like IMPS, NEFT and UPI online transactions are free of cost.
Paytm payments bank follows the standard RBI rules of cash withdrawal charges similar to all other commercial banks in India. For the same, Airtel payments bank charges 0.65% of the withdrawal amount; India Post payments bank doesn’t charge any fee for withdrawals made from their own ATM or any Punjab National Bank’s ATM if not it too follows the same RBI rules.
Bank accounts are opened instantaneously through their respective mobile apps just by providing details like Aadhar number with KYC verification.
India Post payments bank offers a free debit card with annual maintenance fee of Rs. 100 from second year. Paytm payments bank is also offering digital debit card for free and an annual subscription charge of Rs.100 for the physical card. It is also providing its customers with checkbook for Rs. 100.