PPB has also announced the reduction of savings accounts interest rate by 50 basis points, from 4% to 3.5%.
Paytm Payments Bank (PPB), India’s largest and only profitable Payments bank announced the imminent launch of their on-demand fixed deposit product. PPB has also announced the reduction of savings accounts interest rate by 50 basis points, from 4% to 3.5%. These changes will be effective from November 9, 2019. PPBL customers can now book FDs for any amount and earn interest of up to 7.5% (as of 10 October 2019) on their fixed deposits with PPB’s partner bank.
Satish Kumar Gupta, MD & CEO of Paytm Payments Bank said, “RBI has recently cut the repo rate by 25 basis points to 5.15%, which takes its cumulative cuts so far in the last 12 months to 135 basis points, which has prompted this move.”
The bank is also launching on-demand FD in early November that will enable the savings account customers to create a fixed deposit with their partner bank, irrespective of the quantum of their investment. “With the launch of our on-demand FD product, interest conscious PPBL customers can earn higher interest of up to 7.5% (as of 10 October 2019) on their fixed deposits with PPB’s partner bank. They can instantly redeem the partial/complete amount from their fixed deposit at any time free of charge. We are focussed on our mission to bring financial inclusion in every nook and corner of our country, and believe everyone should be able to access simple financial instruments at low cost. Our offering of on-demand FD will enable our customers to create fixed deposits – starting from as low as Re 1- and earn an interest of up to 7.5% (as of 10th October 2019)” added Mr. Gupta.
PPB has a highly secure infrastructure and allows transactions and deposits of any size during the day, in its savings accounts. At the end of the day, any amount exceeding the limit of Rs 1 lakh across savings account and/or wallet, is automatically converted into a fixed deposit via auto sweep with PPB’s partner bank, allowing customers to earn up to 7.5 percent p.a. interest (as of 10th October 2019) on their fixed deposit amount.
PPB has been growing rapidly and led the rankings in number of digital transactions, as per the July report by the Ministry of Electronics and Information Technology (MeiTY). As of April 2019, the bank had more than Rs 500 crore deposits in savings accounts, which makes it the largest payments bank in India in terms of deposits and is aiming to introduce more products and features to increase the monthly processing of savings account payments from Rs 24,000 crore to Rs 40,000 crore in FY 2019-20.