Airtel, Paytm or India Post: 5 things to know before you use a payment bank

[Devesh]

Payment banks offer enhanced services compared to a digital wallet, but are not in the same league as the traditional banks.Before you opt for their services, take a look at the rate of interest being offered by them. Like traditional banks, payment banks too offer interest on deposits in savings account and it can significantly vary.Currently, Airtel payment bank offers 7.25%, India Post payment bank gives 5.5% and Paytm payment bank offers 4% annual interest.

CONVENIENCE AND REACH

Inquire whether a payment bank offers ATM cards that can be used to withdraw money from other banks. Currently, Airtel does not offer such ATM cards. “However, Airtel has over 10 lakh outlets across India and these will become banking outlets allowing customers to deposit and withdraw money,“ says Deepak Kinger, VP, Banking and Financial Services, VirtusaPolaris. However, if you need a debit card, India Post or Paytm may suit you better. “Frequent travellers should also check whether a payment bank can provide forex cards that can be used as a debit or ATM card outside India,“ says Harshil Mathur, Co-founder and CEO of payment gateway firm Razorpay.

Airtel: Airtel, Paytm or India Post: 5 things to know before you use a payment bank, Telecom News, ET Telecom