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All About Payments Bank in India. How different are they?

Banks are our very own digital companion. It is the most secure platform to store our wealth. When we get our first salary, the only word than cripples in our mind is ‘bank’. Our trust is what makes them very special among any other system till date. Every physical currency i.e. notes, coins can be deposited here. Further circulation and maintenance of them is governed by RBI(Reserve Bank of India) in India. Loans are the primary source of income for all general banks. A share of it is conveyed to your Fixed Deposit or Savings Accounts as interest. In India, we have mainly private and public sector banks. SBI(State Bank of India) is India’s largest bank. It too has the highest number of Branches and ATMs across the nation.

airtel payments bank

However, apart from these full fledged banks, we have payments bank. These have been newly conceptualised by RBI. The banks have limited authorities in balance count per a/c and features it can provide to it’s a/c holders. Payments Bank have a maximum limit of 1 lakh per customer. They can’t provide loans and issue credit cards. On general usage, these can be used for frequent personal online or offline purchases. These often come very handy for UPI based transactions.

After the introduction, companies like Airtel, Paytm, Fino etc have launched their own version of Payments Bank. All of them provide different amount of interest for savings a/c. Airtel gives 7.25% p.a.(per annum), Paytm provides 4% p.a. and Fino at 7.25% p.a. max. Jio is yet to launch its services with 7:3 venture ratio with SBI.

paytm payments bank

Advantages:

In short, Payment banks are basic versions of regular bank. They come handy for frequent purchases. Their usage advantages over regular banks are:-

  • NIfty and easy process of opening an account through eKYC if you have Aadhaar Card.
  • Has almost all the features of savings account.
  • Doesn\t require to have Net Banking panel.
  • Optional physical Debit Card comes with an one time charge.
  • Can deposit money if your balance exceeds over a lakh.
  • Very easy and safe banking process.

Disadvantages:

Only limitations are:

  • Limit of ₹1 Lakh per customer.
  • Can’t issue loans.
  • Can’t issue credit cards.
  • No NBFC subsidiary.

Comparison of Various Payments Banks:

Among these promising candidates which one should you choose and park your sum?

Airtel Payments Bank Paytm Payments Bank Fino Payments Bank
Interest Rate 7.25% 4% 7.25%
Minimum Balance 0 0 0
Intra Bank Fund Transfer charges 0 0 0
Inter Bank Fund Transfer charges 0.5% 0 0
Physical Debit Card Not as of now Yes on charge Yes on charge
Cash Withdrawl ₹5-25 ₹0 ₹5 after exceeding frequency limit

 Enrollment Process:

For Airtel and Paytm Payments Bank, you need to download their respective apps to complete the eKYC process. We expect the same procedure for Jio PB too or it may use your previous KYC which you did while getting sim card. You need to visit Fino’s official site to open an account.

 

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Abhiraj
Interested in blogging specifically in the emerging field of technology and science. I am passionate about my dreams to web development and programming.
https://cinformatics.in

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