Payments banks are not allowed to offer loans, or offer credit cards. The payments banks can also only invest the money people deposit in government securities.
Airtel Payments Bank will be giving customers talktime equivalent to the money deposited in their new savings account on their Airtel number.
The talktime can be used to make calls all anywhere in India. The offer is only for deposits made in the bank for the first time. The company said that the validity of the talk time will be only for 30 days.
Airtel Payments Bank says that it will impose a 0.65% cash withdrawal fee on transactions for its account holders in order to discourage them to use cash. However, the payments bank will not charge any processing fee from its customers and merchants partners for digital transactions.
Currently, Airtel Payments Bank offers 7.25 % per annum on deposits in savings accounts and a customer’s Airtel mobile number will be their bank account number. It also offers personal accidental insurance of Rs 1 lakh with every savings account.