New Delhi, January 13: After demonetization move several citizens faced low cash availability, for them many enterprises came forward to relieve from the stress. Likewise on Thursday, Bharti Airtel launched India’s 1st Payment Banks which aims to develop pan-India banking network and digital payment ecosystem. Finance Minister Arun Jaitley launched “Airtel Payments Banks” on Thursday in New Delhi.
Bharti Airtel and Kotak Mahindra Bank in a joint venture will invest Rs.3000 crore to build pan-India banking networks enabling customers to operate accounts from their telephones. Several are still not able to access the banking facilities; hence Bharti Airtel aims at promoting financial services to the millions of people out there. With a launch Airtel Payments Bank promised an interest rate of 7.25% on the deposits of the saving accounts.
Uday Kotak, Mananging Director of Kotak Mahindra Bank said that “I have seen the insides of traditional banking. I understand that the cost to open a bank account and serve a customer is significantly higher. Airtel Payments Bank with its reach can do so with significantly lower costs, which traditional banks cannot compete with.”
The company also introduced an online card in collaboration with MasterCard for cashless payments. This initiative aims to boost the digital transactions as 1 million customers have already joined the Airtel Payment Banks. In all Airtel Payment Bank will have network of 2,50,000 retail stores across 29 states with 5 million merchants. A payments bank is fully digital and customers can access services over mobile phones, including all feature and basic mobile phones. It also offers the talk time as equal to the amount deposited in the savings account. The payment bank won’t charge any fee over merchants or customers.