Share on Pinterest

Payments Bank

As you know, a payments bank is a lightweight version of a regular bank. It can be used for day-to-day banking services with some limitations (Read: Paytm Payments Bank) .A total of 11 players have been granted license including Paytm, Airtel, India Post (for changing address better visit change-of-address-online.com – fast and comfortable, and not need to go out for some papers) among others. Like other banks, it is also regulated by the RBI.

You can open an account in less than 5 minutes with most payments bank. All you need is an Aadhaar card and sometimes a PAN number.

Let’s have a look at the three biggies – Airtel , India post and Paytm and try to find out how they stack against each other :

AIRTEL PAYMENTS BANK

Airtel launched its payment bank in January 2017 and is India’s first Payments Bank. Bharti Airtel has 80 % stake in Airtel Payments Bank while Kotak Mahindra owns the remaining. Airtel aims to operate its 2,50,000 retail stores as banking points.

This is what Airtel has to offer :

  • Interest Rate : 7.25 % (Highest among payments bank and also most commercial banks)
  • Minimum Balance : Rs 100 for first cash deposit
  • Online fund transfers : 0.5 % of the amount
  • Chargeable cash withdrawal
  • Personal accident cover of 1 lakh
  • Fully digital and paperless
  • 2,50,000 banking points Airtel retail stores

INDIA POST PAYMENTS BANK

India Post Payments Bank

This is the banking arm of India Post. According to recent talks on www.aadhaarhelpspot.co.in, it is a Public Sector Bank under the Department of Posts with 100% GOI equity. It was launched on 30th January 2017 in Ranchi and Raipur with pan India expansion by the year end (view your PAN status).

The facilities and associated costs are as follows :

  • Interest Rate : 5.50 %
  • Minimum Balance : Nil
  • Debit Card : Free, Rs 100 charge from 2nd year
  • Online Transfer : IMPS at Rs 5 , NEFT between Rs 2.50 to 5.00
  • ATM Transactions : Free at India Post and PNB ATM, 3 and 5 free transactions in metro and nonmetro resp. After that Rs 8 and Rs 20 per transaction resp
  • Online fund transfers : 0.5 % of the amount

PAYTM PAYMENTS BANK

Paytm has started its banking services on 23rd May. Paytm founder, Vijay Shekhar Sharma owns majority 51% share in the new entity as mandated by RBI.

Initially the service is invite only where you need to request Paytm to open an account. All Paytm wallet accounts except those where the user has asked not to transfer, were to be transferred to Payments bank account on 23rd May..

Let’s have a look at the ins and outs of Paytm payments bank:

  • Interest Rate : 4 % (similar to commercial banks such as SBI)
  • Minimum Balance : Nil
  • ATM Transactions : 3 free for metros, 5 free for non metros, Post these, Rs 20 per cash transaction and Rs 5 per non-cash transaction
  • Debit Cards : Rupay debit card, Rs 100 plus delivery charge and taxes
  • Cheque Book : 10 leaves cheque book costs Rs 100 plus delivery charge and taxes
  • Online fund transfers : Free

Summary

Service Airtel India Post Paytm
Interest rate (P.A) 7.25 % (Introductory) 5.5 % 4. %
Minimum Balance Rs 100 for first cash deposit Nil Nil
Online Fund Transfer 0.5 % of the amount IMPS at Rs 5 , NEFT between Rs 2.50 to 5.00 Free
ATM Transactions Not Applicable

But Cash can be withdrawn at Airtel retail Points

Charge : Rs 5-25 for Rs 10-Rs 4000 withdrawal and 0.65 % of total amount for above Rs 4000

Free at India Post and PNB ATM

At others, same as Paytm

3 free for metros

5 free for non metros

Post these, Rs 20 per cash transaction

Debit Card and its  fees Online only Free debit card, Rs 100 for add-on cards

Rs 100 annual charge 2nd year onwards

Virtual debit card and Rs 100 + delivery charges and taxes for Rupay debit Card
Other Facilities Personal accident cover of 1 lakh Doorstep banking at Rs 15-35 App based and paper based banking

Note: Highlighted in Green denotes the best among three

It can be observed that each has its own USP and depending on the need, the choice will vary. But with nil minimum balance and free online transactions, Paytm can have clear lead in cities with high internet penetration.

Share with us what you feel about the payments bank in the comments section below!

Share on Pinterest