Paytm Payments Bank on Monday announced that it will invest Rs 3,000 crore to create a network of 1 lakh consumer banking touch points called Paytm Ka ATMs over the next three years. "The Paytm ka ATM banking outlet is our step towards ensuring every Indian has access to banking facilities. This will enable our customers to visit their trusted neighbourhood outlet to open their bank account, deposit and withdraw cash, in addition to getting their Aadhaar linked," said Renu Satti, MD at Paytm Payments Bank, in a company statement.
"We believe this hyper-local model of banking will play a crucial role in enabling hundreds of millions of under-served and un-served customers to gain access to quality banking services," added Satti. According to a recent Assocham-EY report, over 19% of our population remains unbanked.
The payments bank reportedly already has 3,000 Paytm ka ATMs serving as cash-in and cash-out points in select cities-including Delhi NCR, Lucknow, Kanpur, Allahabad, Varanasi and Aligarh-which were rolled out in the first phase.
Paytm Payments Bank is a part of the new bank model visualised by the Reserve Bank of India back in 2013-14. It was registered last year but formally launched operations just last week. Earlier in the year, three other payments banks (PBs) already started operations-Airtel Payments Bank, Fino Payments Bank and India Post Payments Bank-and a fifth one, Jio Payments Bank, is expected to launch soon.
To stand out among its competitors Paytm Payments Bank is offering a free digital debit card, accidental insurance up to Rs 2 lakh and completely free online fund transfers. All the scheduled banks charge customers for online interbank fund transfers, typically Rs 5+GST for IMPS transfers of up to Rs 1 lakh and Rs 2.50+GST for NEFT transfers of up to Rs 10,000 and the other PBs, too, have their own charges in place. Last week, the bank also announced that looking to partner full-service banks to offer more services like loans and credit cards.
(With agency inputs)