Paytm Payments Bank Ltd., a subsidiary of Indian digital payments giant Paytm, announced today that its deposits have transcended the ₹1000 crore in value. The number is a summation of deposits from over 57 million savings account holders across the country. The bank has made major strides in opening up digital banking in lower stratas of the Indian economy.
The payments bank began as India’s first bank with zero charges on online payments, no minimum balance requirements and a free virtual debit card. The bank ensured an interest rate of 4% on all savings accounts and promised that the deposits will be used to invest only in government bonds. With a commendable number of accounts set up and features relevant to the Indian economy, developments in the digital banking sector can be credited to this entity.
Apart from announcing the landmark on deposits, Paytm Payment Bank also announced opening up of direct benefit transfers through the bank. Eligible customers can receive benefits of over 400 government subsidies directly into their payments bank accounts.
“We have always strived to provide a wholesome banking experience to our users, and direct subsidy transfers will help millions of customers, especially those from tier 2 & 3 cities” said Satish Kumar Gupta, CEO and Managing Director, Paytm Payments Bank.
This subsidy transfer program will be a part of Indian central government’s DBT or Direct Benefit Transfer schemes. This scheme facilitates the direct transfer of government subsidies to the beneficiary’s account. A feature facilitating a large section of the economy, it supports subsidies from various social welfare schemes such as LPG gas subsidy, MNERGA payments, Old Age Pension, and scholarships.
In order to opt for DBT, the account holders can submit an online request through the Paytm Payments Bank Android app. Once submitted, the details will be processed over a course of 2-3 days. The subsidy received will be averse of any fee and the status can be checked through the app itself.
In terms of certain other statistics, Paytm says that its payments bank has recorded over 4.5 million debit card transactions monthly. The bank offers considerable flexibility, allowing customers to choose from VISA, MasterCard and RuPay debit cards.
