Airtel launches India’s first payment bank : All you need to know

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With the launch of pilot in Rajasthan on 23rd Nov 16, Airtel becomes first in the race to launch payment bank leaving Paytm behind who earlier announced it’s plan to venture into payment banking . It is seen as another big move towards the digital payment systems . There could have been no better time to announce the launch in the wake of demonetisation thus making the maximum of it .

Key benefits of Airtel Payment Bank in India:

  • Offers 7.25% of interest rate on savings account approx 2-3 % higher than the average rates
  • You can deposit upto Rs 1 lac
  • Airtel & Non -Airtel both the customers can open their account
  • Airtel retail outlets will serve as banking outlets
  • Mobile no. will serve as account no. for Airtel customers and a unique no will be provided to non airtel customers
  • You can deposit and withdraw cash
  • You cannot take loan or lend money as payment banks are not allowed to provide loans
  • No credit cards will be issued
  • 1 lac accidental insurance with every savings account
  • You can open account using e-KYC through Adhar Card
  • Facilitates the ease on online transactions, shopping ,ticket bookings etc
  • You can check your balance through smartphones using Airtel Mobile App and also through using USSD or IVR on feature phones

 

What are payment banks :Rights, Needs & Objectives

As Bill gates once said “Banking is necessary, Banks are not ” ; but India still have a population of more then 50% who doesn’t have a bank accounts .RBI has issued guidelines in August 2015 for Payment banks with the aim to include everyone in the banking system with ease .

 

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Rights, Needs & Objectives

  1. Payment banks will include people in the banking system by providing basic facilities to migrants, low key workers ,labourers , small shopkeepers etc ,who doesn’t have a bank account
  2. Payments banks are required to have min 25% of access in rural areas
  3. Payment banks can provide basic facilities like bank deposits and supply of credit , keeping the are of operation limited
  4. Mobile service provider , supermarket chain can be your bank
  5. Payment banks will have to pay interest on savings account
  6. Payment banks cannot provide loans or lend money to the customer .
  7. Payments banks would be regulated by RBI so safety of customers money is guaranteed

With Airtel already starting it’s operation and other competitors announcing their plans, it would interesting to watch how this would serve a needle in making the banking system omnipresent in the country.

 

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