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More than 10,000 customers have opened savings bank account in the Airtel Payment Bank in just two days since the launch of its first payment bank. Recently Airtel launched its first payment bank in Rajasthan India.
Shashi Arora, managing director, Airtel Payments Bank, said: “We are very enthused by the response from customers from semi-urban and rural areas. We believe this differentiated banking model will offer a lot of convenience to customers and are hopeful of onboarding more customers. We are offering the highest interest rate on savings account deposits in the country along with personal insurance of Rs 1 lakh. We may look at sweetening the value proposition further and introduce more benefits in the coming days to accelerate the onboarding.”
What are Payment Banks?
Payments banks are a new model of banks conceptualised by the Reserve Bank of India (RBI). These banks can accept a restricted deposit which is currently limited to INR 1 lakh per customer account. These banks cannot issue loans and credit cards. Both current account and savings accounts can be operated by such banks.
As the entire India is lurching due to the Demonetisation of INR500 and 1000 currency , this move shall test the waters and will also help Airtel to gain substantial userbase and advantage of First Time Mover amongst other Payments Banks licensees. Recently RBI has given in-principle approval to the below list of people/organisation for Payment Banks. This move is seen to bring in more competition to the existing Fintech Companies like Paytm which are capitalising on this lifetime opportunity. Recently paytm has crossed 50 million downloads of their mobile app as well as launched a service for merchants to accept debit and credit cards across India through Paytm App POS
- Aditya Birla Nuvo Ltd
- Airtel M Commerce Services Ltd
- Department of Posts
- Fino PayTech Ltd
- National Securities Depository Ltd
- Reliance Industries Ltd
- Vijay Shekhar Sharma, Paytm
- Vodafone mpesa Ltd
Other than the above listed entities three have surrendered their licenses. First one being “Chalomandalam Distribution Services”, then “Dilip Shanghvi, Sun Pharmaceuticals” and the latest, “Tech Mahindra