Its first branch would be in Noida. Paytm plans to open 31 branches and 3,000 customer service points in a year. The initial accounts will be invitation only. The bank will roll out its beta banking application for employees and associates soon.
The company is setting up Know Your Customer centers across the country. The bank will offer current accounts to its six million online and offline merchants as well.
In the past 48 hours, Paytm sent out messages to its 220 million users, asking them open a payments bank account. However, company officials said those who do not wish to open an account have to only send an email and can continue to use the wallet as it is.
As Paytm wallets have been merged with the new entity, Paytm Payments Bank, all wallets are being transferred to it.
“The RBI (Reserve Bank of India) has given us an opportunity to create a new kind of banking model. Our customer deposits will be invested in government bonds, and be used for nation building. None of our deposits will be converted in to risky assets,” Vijay Shekhar Sharma, chairman, Paytm Payments Bank, said.
The company plans to open 500 million accounts by 2020. “Leveraging the power of technology, we aim to become the preferred bank for 500 million by 2020,” said Renu Satti, chief executive officer, Paytm Payments Bank.
Paytm would also offer RuPay cards to customers. “We will offer five free ATM transactions (in non-metro cities) per month. After that, customers will pay Rs 20 per ATM withdrawal,” the company said.
Airtel charges 0.65 per cent on each cash withdrawal. India Post is the only payments bank at present which offers a card to its customers to take out cash from its India Post ATMs.