Airtel Payments Bank propelled nationwide operations, presenting 7.25% interest on savings bank balances, which is more than the supreme 7% paid by SBI on its fixed deposits.
The only catch is that the payments banks, which do not proposal loans and several other facilities offered by full-fledged rivals, are not allowed to take deposits beyond Rs 1 lakh in bank accounts, which will have the similar number as your mobile number. Bharti Airtel chairman Sunil Bharti Mittal believed that the higher interest rate and freebies such as life insurance of up to Rs 1 lakh was an “introductory offer” and the charges would go down in a falling interest rate environment.
Only a few years ago, RBI had aloof the 4% cap on savings bank deposits, motivation “newcomers” such as Kotak Mahindra and Yes Bank to deal 6-7% to their account holders on idle balances in savings bank accounts. But that did not affect in accountholders shifting banks to get more. Mittal said Bharti and Kotak Mahindra, which grips a 20% stake in the payments bank, would invest Rs 3,000 cr in the venture.
“As more and more telecom companies enter into the fray, I think we will confidently see competition not only amongst telecom companies which we read a lot about these days, but possibly see a competition between conventional and new mode of banking,” FM Arun Jaitley added.
Mittal believed that just as mobile telephony leapfrogged traditional telecom networks to take reasonable telecom services deep into the country, Airtel Payments Bank targets to take digital banking services to the unbanked over their mobile phones in a swift and efficient manner. Bharti clasps 80% stake in the payments bank, and the break is held by Kotak Mahindra Bank.
Airtel Payments Bank providing 7.25% interest
