Paytm Payments Bank Limited (PPBL) on Tuesday announced the launch of its zero-balance current account facility. This move is aimed at small and medium enterprises (SMEs) who do not have access to free current accounts.
In a statement, PPBL said that its current account customers will also enjoy free banking services without any minimum balance requirement or additional charges on digital transactions.
These current accounts will be available to individuals, sole proprietors, SMEs, and large corporates, who can also deposit money an unlimited number of times without incurring any charges. This feature is helpful to shop owners who receive a majority of payments in cash on a daily basis.
A customer’s balance above Rs 1 lakh at end of the day will be automatically transferred to a current account with a partner bank, since RBI guidelines dictate Payments Bank accounts to have a balance limit of Rs 1 lakh.
However, there is no restriction on depositing any amount and conducting transactions during the day. Customers can redeem these swept-out balances on demand at any time.
Large corporates also benefit from the current account facility through its interactive net banking panel. The bulk payment mechanisms enable corporates to transfer funds to employees’ bank accounts for salary, reimbursements or any other payments.
Enterprises using PPBL’s current account can also process bulk bill payments and can customise the approval matrix for the same based on their requirements. PPBL has designed these offerings keeping in mind the usage and requirements of small business owners and large enterprises.
Talking about the launch, Satish Kumar Gupta, MD, and CEO, Paytm Payments Bank Limited, said,
“We are on a mission to bring under-banked Indians to the mainstream economy. There are a large number of small businesses who do not have a current account or do not actively use their current account for everyday payments. With our current bank account offering aims to provide the best in class banking facilities to businesses, especially small and micro enterprises. The addition of current accounts to our product portfolio is in sync with our vision of driving real financial inclusion.”
Last week, Paytm Payments Bank said it will allow its 42 million customers to invest in mutual funds through Paytm Money, the wholly owned wealth management subsidiary of One97 Communications Limited, which operates Paytm.
Tarush is driven towards delivering unbiased and accurate reportage while engaging with as many mediums as possible to narrate a fresh perspective. Working for the past few years in the digital space with YourStory, he has covered the Indian technology ecosystem extensively, focusing on new age Fintech companies, while building strong connects within the industry.