Paytm Payments Bank on Thursday announced reducing their savings account interest rate by 50 basis points to 3.5 per cent from earlier 4 per cent. The new rate will be effective from November 9, 2019.
Paytm Payments Bank on Thursday announced reducing their savings account interest rate by 50 basis points to 3.5 per cent from earlier 4 per cent. The new rate will be effective from November 9, 2019. The Reserve Bank of India (RBI) had recently slashed the repo rate by 0.25 basis points to 5.15 per cent from 5.40 per cent earlier that is likely to make home loans and other retail loans cheaper. The repo rate, which was fifth in line so far this year by overall 135 basis points, “has prompted this move,” according to a company statement quoting Satish Kumar Gupta, MD & CEO, Paytm Payments Bank.
The payments bank also announced the launch of their on-demand fixed deposit (FD) product for customers to book FDs “for any amount and earn interest of up to 7.5 per cent (as of 10 October 2019) on their FDs with PPB’s partner bank,” the payments bank said. The new on-demand FD service will help customers having savings account to create an FD with their partner bank irrespective of their investment amount.
Customers “can instantly redeem the partial/complete amount from their fixed deposit at any time free of charge,” added Gupta. Paytm Payments Bank said that it allows transactions and deposits of any size during the day, in its savings accounts and that any amount beyond Rs 1 lakh limit in savings account and/or wallet is converted into an FD via ‘auto sweep’ with the payments bank’s partner bank, letting customers earn up to 7.5 per cent per annum interest on their FD amount.
Paytm Payments Bank claimed to top the number of digital transactions as of April this year with over Rs 500 crore deposits in savings accounts, it said citing the July report of the Ministry of Electronics and Information Technology (MeiTY). The payments bank is looking to increase the monthly processing of savings account payments from Rs 24,000 crore to Rs 40,000 crore in FY 2019-20.