Airtel Payments Bank to Charge 0.65% Cash Withdrawal Fee, to Encourage Cashless Transactions


Airel Payments Bank is going to charge 0.65% fee on cash withdrawals, but will not levy any processing charge on digital transactions from January 2017 to embolden cashless payments.
In order to discourage cash withdrawals from the Airtel Payments Bank accounts, a nominal cash withdrawal fee (0.65% per transaction) will be levied, thereby, encouraging customers to go for digital payments for transactions.
“Airtel Payments Bank will not charge any processing fee from its customers and merchant partners, who are opting for digital transactions. The benefit of no hidden costs, will encourage both merchants and customers to adopt cashless payments.” Airtel Payments Bank revealed in a statement.
It has already rolled out pilot service projects across Rajasthan and has successfully opened over 100,000 savings accounts in less than two weeks of instigating services. It plans to shortly extend its pilot services to Telangana, Andhra Pradesh, and Karnataka.
The bank is offering an interest rate of 7.25% p.a on savings bank accounts.
Airtel Payments Bank is planning to develop a nationwide merchant network of over 3 million partners that will include small grocery stores, small shops and restaurants. These merchant partners will be enabled to accept digital payments for the provision of goods and services from Airtel Payments Bank customers over mobile phones.
Customers will be encouraged to open savings accounts with Airtel Payments Bank to make convenient digital payments using their mobile phones across a wide merchant base, in addition to earning a healthy interest rate on savings deposits. Airtel Payments Bank is also planning to offer incentives in the form of goodies to customers who use digital mode of payment.
It will also provide 100 minutes of free Airtel to Airtel mobile talk time to 100,000 of its customers through a lucky draw, who use digital payments for transactions. The bank is said to start the initiatives to encourage digital transaction which will start from January 2017.

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