Fixed Deposit with Paytm Payments Bank: Customer can open this account based on his savings account. But this FD has no maturity limit.
In the last few years, the concept of a new banking model has developed in India. And RBI agrees with that. Such a bank is called ‘Payments Bank’. Such banks are being built to meet the transaction needs. Currently there are around 6 payment banks operating in India. But initially 8 payment banks were created. Two of them have been closed. The range of conventional commercial banks differs from these banks as they operate with a new type of infrastructure and appearance.
Payment banks also have several limitations. A certain amount of money can be deposited in all these banks. For example, currently a customer can deposit up to Rs 2 lakh in such a bank. But payment banks do not have the power to lend to the borrower. They don’t even offer credit cards. But these companies have been empowered to issue debit cards. Apart from mobile or online banking, ATM withdrawal facility is available through this debit card.
Currently one of the 6 payment banks operating in India is Paytm payment bank. The facility of Fixed Deposit (FD) has been launched in this bank. Customer can open this account based on his savings account. But this FD has no maturity limit. As a result, there is no time limit or condition for withdrawing any money.
That is why such payment banks cannot legally deposit above Rs.2 lakhs. So when a customer’s deposit exceeds 2 lakh rupees, Paytm Payment Bank deposits the customer’s savings as FD. IndusInd Bank is helping them in this. IndusInd has a partnership with Paytm.
Let’s take a look at the benefits!
Maturity Period – 365 days
Interest on Maturity – 5.5 percent
Auto Renewal – At the end of the term
Redemption – Instant
Penalty for withdrawal before maturity – No
Customer himself can open fixed deposit by going to ‘Auto-Create Fixed Deposit’ option.