To increase its payment bank consumers, Paytm Payments Bank has tied up with IndusInd Bank to introduce a linked Fixed Deposit.
As per Paytm official blog, the offering will prioritize convenience and flexibility. If customer’s balance exceeds Rs 1 lakh by the end of the day, the firm will automatically sweep it out and start a Fixed Deposit. The facility claims to offer the customer a hassle-free and paperless saving experience and provide up to 6.85 per cent annual interest.
“Majority of Indians prefer safer investment options that offer them higher earning potential. Our offerings will add the much-needed convenience of zero paperwork, instant redemption and no charges to one of India’s most preferred investment methods. We are confident our customers would appreciate our efforts to simplify investments while providing assured returns,” said Renu Satti, MD and CEO of Paytm Payments Bank.
The Alibaba-funded company is aiming to acquire a major market share in domestic market and become the world’s largest digital bank through a suite of banking and financial products.
Payments Bank was launched on November 23, 2017. It has zero charges on online transactions and no minimum balance requirement. Currently, the Paytm bank offers around 4-7 per cent interest rates on savings accounts.
The Paytm Payments Bank has set a target to open 200 million accounts across current and savings account, and mobile wallets. It has also proposed to set up 33 controlling offices and 3,000 access points by March 31, 2018. The bank plans to set-up 31 branches with a network of cash deposit machines and onboard 1,00,000 agents to provide banking services.
According to RoC filing, Paytm Payments Bank has posted a loss of Rs 30.7 crore between August 2016 and March 31, 2017. The filings reveal that during August 2016 – March 2017, the company made Rs 2.47 crore as revenue.
In May last year, Paytm had raised $1.4 billion from Softbank at a valuation of $7 billion. The investment was one of the largest fund-raising events for any internet company in the country.