Demoneitization: 10,000 Accounts Open in 2 Days! What’s Airtel Payments Bank

Airtel Payments Bank saw over 10,000 people opening savings accounts in just two days of commencing operations. These customers opened their first Payments bank savings account at the company’s outlets. Majorirty of these 10,000 savings accounts were opened in rural or semi-urban areas of the state which, the company says, indicates there’s lots of potential of growth for banking services in these places.

“We are very encouraged with the response from customers, in particular, from semi-urban and rural areas. We believe that this differentiated banking model will offer a lot of convenience to customers and are hopeful of onboarding more and more customers in the coming days. We are offering the highest interest rate on savings account deposits in the country along with personal insurance of Rs 1 lakh and may look at sweetening the value proposition further and introduce more benefits in the coming days to accelerate the on boarding,” said Shashi Arora, MD & CEO, Airtel Payments Bank said,

On 23 November Airtel launched its Payments Bank, a kind of new age banking service. The operator, who runs this banking service under Airtel M Commerce Services, beat many other licensees including market leader PayTm to become the first company to start a Payments Bank.

A Payments bank is similar to a traditional bank but the services are being offered by companies other than the banks. In August last year the Reserve Bank of India gave licenses to 11 companies to offer conventional banking service. These licenses are called Payments Bank license.

The companies who were issued payment bank license include: Aditya Birla Nuvo, Airtel M Commerce Services, Cholamandalam Distribution Services, Department of Posts (DoP), Fino PayTech, National Securities Depository, Reliance Industries, Dilip Shantilal Shanghvi, Vijay Shekhar Sharma, Tech Mahindra and Vodafone m-pesa.

While other companies are planning to launch their respective payments banks, Airtel has started offering the services, though as a pilot, in Rajasthan.

What You Can Do With Airtel Payments Bank

  • Like a traditional bank, one can open a savings account in a payments bank.
  • Your Airtel mobile number is your account number
  • You may get a debit/ATM card
  • You will not get a credit card
  • You can earn interest of 7.25% p.a on your deposit
  • You can deposit upto Rs 1,00,000
  • You can transfer money to any bank account
  • You can do online shopping, ticket booking, transactions etc
  • You can withdraw cash
  • You get Rs 1 lakh personal accident insurance with a new savings account

Where To Open Airtel Payments Bank Account

At present the payments bank facility is launched in Rajasthan only, which Airtel is planning to launch in other parts of the country as well. In Rajasthan, one can open a savings account at any of the 10,000 retail outlets of the company. One just needs his Aadhaar number to open his account which can be verified through e-KYC.

The Airtel payments bank savings account can be used at thousands of merchants in the state for shopping, ticket booking, online transactions or money transfers to any bank. One can also transfer money from one account to another account.

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