In order to increase the customers of Paytm Payments Bank, it has tied up with IndusInd bank to offer linked Fixed Deposit.
Paytm, in its official blog has said that it will give an exceeding priority to convenience and flexibility. If the balance of any customer exceeds Rs 1 lakh at the end of the day, the company will automatically mop and start a fixed deposit out of it. With this, customers will get a hassle-free, easy and paperless saving facility. Also, they may get up to 6.85 percent annual interest.
Since most of the Indians prefer safe investments that offer guaranteed earnings, Paytm thinks that their venture which requires zero paperwork, instant redemption and no charges will be among the most preferred ones.
Paytm is constantly thriving to become the world’s largest digital bank by constantly upgrading their banking and other financial products. Currently, its main aim is to acquire a major chunk in the domestic market.
Paytm Payments Bank was launched on November 23, 2017 and offers some alluring features like zero charges on online transactions and no minimum balance requirement. It also offers interest rates of around 4-7 percents on savings accounts.
The Paytm Payments Bank has set a target for itself to open 200 million accounts across current and savings account, and mobile wallets. By March 31, 2018, it is planning to set up 33 controlling offices and 3,000 access points. It also wants to set up 31 branches with a network of cash deposit machines and onboard 1,00,000 agents to provide banking services. Their recently announced ‘Paytm Ka ATM’ will permit customers to deposit and withdraw their money. They can also open savings accounts in these outlets. Paytm thinks that these outlets will be influential in bringing banking access to smaller cities.
In between August 2016 and March 31, 2017, Paytm Payments Bank incurred a loss of Rs. 30.7 crore. However, August 2016 – March 2017 fillings revealed that the company made a profit of Rs 2.47 crore as revenue.
In May 2017, Paytm raised a whopping $1.4 billion from Softbank which boosted the company’s valuation to $7 billion. It was among the largest investments for any internet based company in the country