PAYTM PAYMENTS BANK FIXED DEPOSITS HIKE
Paytm Payments Bank fixed deposits crosses 600 crore and 57 million savings accounts.
Paytm Payments Bank is a venture of Paytm (an Indian e-commerce payment system and financial technology company) headquartered at Noida, India. On August, 2015, Paytm received a license from Reserve Bank of India (RBI) to launch the payments bank.
Paytm Payments Bank offers various benefits like opening savings account with no minimum balance requirements.
Paytm Payments Bank claims to offer the interest rate on Fixed Deposits (FDs) upto 7% per annum. It crossed around 1k Crores of deposits with 600 crores in Fixed Deposits and 57 million savings accounts.
The Company has also reported that during the period of lockdown a large number of their customers and converting from savings to fixed deposits. Thereby in view of this Paytm Payments Bank is offering their customers an interest of 7% p.a. on fixed deposits.
Also adding to this benefit they have given the flexibility to customers to withdraw their partial or complete amount of money from fixed deposits at any time free of charge, that is not offered by any bank as of now.
Paytm Payments Bank is the only profitable payments bank in India out of the other payments bank like Airtel Payments Bank, India Post Payments Bank, Jio Payments Bank, Aditya Birla Payments Bank etc.
With the increase in the percentage of deposits in the bank the digital transactions all over the India has been decreasing due to the effect of lockdown and its effect on businesses. The flow of funds in the market has also been staggered, effecting the payments and thereby indirectly affect the digital transactions.
The effect of lockdown has shown a downfall on the economy, thereby everyone including businessman are in the state of insecurity and therefore everyone wants to secure and save their money instead of spending it on unnecessary things. This has led to increase in the deposits percentage in the bank, and decrease in the digital payments.