The bank will allow customers to receive benefits from over 400 government schemes
Paytm claims to have over 57 Mn payments bank account holders
Besides RuPay, Paytm is also looking offer Mastercard and Visa debit cards
Paytm Payments Bank, on April 21, announced that it has crossed over INR 1K Cr in deposits by over 57 Mn account holders.
The payments bank has also confirmed that its customers can now receive the benefits of over 400 government subsidies — including LPG gas subsidy, Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) payments, old age pension, and government-sponsored scholarships — directly into the beneficiary’s bank account through direct benefit transfer (DBT).
“We have always strived to provide a wholesome banking experience to our users, and direct subsidy transfers would help millions of customers, especially those from the tier 2 & 3 cities,” said Satish Kumar Gupta, CEO and managing director at Paytm Payments Bank.
A user can sign up for the DBT option by submitting a requisition online through Paytm Payment Bank app. Once submitted, the request will be processed in two to three days. The company says that there would be no extra charges for linking accounts to receive government subsidies. Besides this, account holders can also keep a check on the status of the transfers through the app.
The development comes after Paytm Payments Bank announced that it will be launching virtual and physical debit cards to its customers. For this, the company has partnered with financial service companies Mastercard and Visa.
The virtual debit cards can be used to make online transactions across various platforms. Whereas, the physical debit card can be used for both online and offline transactions. The physical debit card would also allow the customers to withdraw cash from more than 1 Mn ATMs across the world.
The company said in a previous press note that Paytm Payments Bank will ensure “highest levels” of security for digital transactions by leveraging its mobile and artificial intelligence tools. The company aims to issue over 10 Mn digital debit card by the end of 2021. However, for now, the company is issuing RuPay debit cards.
Paytm Payments Bank was founded in 2017 and is the first profitable arm of Vijay Shekhar Sharma-led One 97 Communications. The company turned profitable in the financial year 2019, recording INR 19 Cr in profits. Whereas, the company had incurred a loss of INR 51.42 Cr in the previous year.
In December 2019, Paytm Payments Bank was seeking permission to become a small finance bank to offer small-value credit to customers in rural and semi-urban areas.