Airtel Payments Bank Vs Paytm Payments Bank: Interest Rate And Benefits Compared

A payments bank is similar to a traditional bank, with exceptions. Payments banks operate on a smaller scale and do not take on any credit risk. They are differentiated and not universal banks. To put it another way, it can handle most financial tasks but not loans or credit cards. In addition, such banks have a Rs 2 lakh deposit limit. Payment banks are given a 'differentiated' bank license by the RBI, which prevents them from lending.

Payments Bank

The main objective is to advance financial inclusion by offering banking and financial services to the unbanked and underbanked areas, helping the migrant labor force, low-income households, small entrepreneurs, etc. Payments banks can not issue Credit cards to their customers. Also, they cannot take time deposits or deposits from non-resident Indians (NRI). It is not permitted to establish subsidiaries to engage in non-banking financial operations.

India currently has 6 Payment Banks. Airtel Payment Bank and Paytm Payment Bank are two of them with mass reach. Airtel Payments Bank was a payments bank in India. A payment bank account is usually used for daily bill payments. The money you need to spend electronically is the only money you need to retain in your account. Payment banks are designed to give comprehensive service, hence it can't be your primary account.

Airtel Payments Bank

Interest Rates

For savings account deposits of more than Rs. 1 lakh, Airtel Payments Bank pays a 6% annual interest rate, while deposits of less than Rs. 1 lakh get a 2.5% annual interest rate.

Benefits

Airtel Payments Bank offers Digital Saving Account, which makes it a quick and paperless account, which can be opened using Aadhaar based e-KYC. This requires no documents at all, only the customer's Aadhaar number is needed. Customers can digitally open an Airtel Payments Bank account with a video call using the Airtel Thanks app in just a few minutes. Customers with an Airtel number linked to their savings account most secure method of making digital payments. As it is a digital saving account, you don't need to worry about the minimum balance requirement. The bank will offer you a virtual debit card with a digital saving account.

Paytm Payments Bank

Interest Rates

Paytm Payments bank on the digital saving account offers 2.5% per annum paid every month. Paytm Payments Bank also offers FD in partnership with IndusInd Bank. One can get up to 5.5 % interest on the Paytm Payment Bank FD account.

Benefits

Paytm Payments Bank has a Digital Savings Account that has no account opening fees and no minimum balance restrictions. One only needs to keep up to Rs. 2 lac of deposits, to avail benefits like no account fees and charges, risk-free deposits, VISA Debit Card. With the digital saving account, customers get a real-time updated passbook. As per the RBI's licensing and operative guidelines for Payments Bank, the aggregate customer balance limit for PPBL customers at the end of the day cannot exceed INR 2,00,000. The bank basis your consent Paytm Payments Bank will book a fixed deposit on your behalf in partnership with IndusInd Bank Ltd. You can also set your exceeding amount limit for the FD within the Paytm Payments Bank app.