Paytm Payments Bank to offer risk-free insurance, mutual fund products by June; savings accounts touch 4.4 crore

New Delhi: Paytm Payments Bank is planning to launch risk-free insurance and mutual fund products by June this year, the company's MD and CEO Satish Kumar Gupta said on Wednesday.

"We have got approval from the RBI very recently. We are working with our partners... It would be a good business stream of revenue generation for us. We are planning to launch the services within the first quarter of the current fiscal... we will launch the services before June," Gupta told PTI on the sidelines of the bank's branch opening here.

 Paytm Payments Bank to offer risk-free insurance, mutual fund products by June; savings accounts touch 4.4 crore

Representational image. Reuters

As on date, the Paytm Payments Bank has 4.4 crore savings bank account with deposit of over Rs 400 crore; and there are as many as 26 crore wallet accounts, Gupta said.

He also said that the payments bank plans to onboard customers digitally without opening many branches. The bank offers two types of accounts — one is wallet account and the other is a savings account both with a limit of up to Rs 1 lakh deposits, with an interest rate of 4 percent.

Gupta said 80 percent of the bank's customers are wallet account holders.

Paytm Payments Bank was incorporated in August 2016 and formally began its operations in May 2017 from a branch in Noida.

The Delhi branch is the second branch of the bank.

It has presence in over 650 districts across the country. Banking transactions happen digitally as well as through business correspondent (BC) model with 2 lakh such entities onboard.

A BC is a representative authorised to offer services such as cash transactions where the lender does not have a branch.

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Updated Date: Apr 03, 2019 18:14:16 IST

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