Well, I am sure if you are reading this you may be pretty much eager to know something or probably everything about the new digital banking ecosystem called as “Payments Bank”. Payments bank is the brainchild of RBI (Reserve Bank of India) which allows companies operating such banks to accept and restrict deposits beyond Rs. 1 Lakh with interest on the money being deposited by the customer over a mobile phone. A Payment bank can maintain both a current and a savings account which includes issuing of banking instruments like ATM or debit cards, net banking & mobile banking. For the time being these banks are restricted to offer loans or credit cards & investment in government securities or deposits from NRI are also not allowed for the time being.
Payment Bank over Traditional Banking System
- Zero Balance Account – No minimum balance is required for operating such accounts whereas traditional banking system would require you to maintain a minimum of Rs 1000 as monthly balance which may increase as per the geographical location.
- Mobile No. as Account No. – Your mobile number is your account number for such payment banks whereas traditional banking systems would designate you with a unique account number keeping your mobile number just for alerts and notifications.
- Offers at disposal – A lot of cash back and discounts are poured on the customers once they register for such an account also traditional banks are these days offering such discounts and cash backs at our disposal. Some players also include free accidental insurance policy as well.
- They are safe – Security on such platforms is of uttermost importance hence companies keep a lot of security layers on, traditional banks are also very much keen on the same and provide industry standard security features at all levels of banking.
- Banking at convenience – You can use your payments bank account right at the convenience of your home or elsewhere without visiting physical a bank whereas traditional banking till today needs you to visit a physical bank for most of the time which is being worked upon and many are doing that as well.
- Interest Rates – Rate of interest on the savings payments bank account is way more than these traditional bank accounts, where the highest rate of interest being provided is up to 7.25 %.
- Easier KYC & banking fees – Payments bank are known for their easy KYC norms and minimal fees being charged whereas traditional banks really complicate KYC norms and their fee structure is also pretty high than normal.
Active Payments Bank in India
- Airtel Payments Bank – provides interest at 7.25 % per annum
- PayTM Payments Bank – provides interest at 4.00 % per annum
- India Post Payments Bank – provides interest at 5.5 % per annum
Now, on the other hand, there is digibank. digibank is overseas based mobile-only bank powered by DBS which makes a proper bank to fit into your smartphone. digibank apart from letting you transact in real time and faster than other players can also let you plan out expenses and let you learn ways to save money as well.
digibank for KYC uses one-time biometrics and aadhar & pan card details to open a savings accounts which could give you the benefits of a traditional bank in your hands.
You can operate the same as a virtual wallet or can convert it to savings account later at your convenience. digibank does not include any paperwork, does not ask you to sign anywhere and moreover they do not operate fully fledged physical banks as well. With all the Bharat enabled QR stores and websites you can use digibank to make payments.
digibank also introduced India first ever virtual assistant based on artificial intelligence on the mobile app to answer more than 10000+ banking queries. Now you do not have to get in touch with rude and not interested customer care anymore.
Security is enabled using embedded soft token which eliminates the use of SMS OTP’s and password input. You can also enable or disable your virtual visa card right from the app itself temporarily for 60 days after which it will be disabled permanently.
Once you convert your digi e-wallet to digiSavings account you will enjoy up to 7% interest from your first rupee, a zero minimum account, free unlimited ATM withdrawals, and exciting offers on travel, entertainment, shopping and more.
You can visit the app and follow the instructions to convert e-wallet to digiSavings account to get all aforesaid the benefits. With digiSavings account debit card you get unlimited free withdrawals across 2 lakh ATM’s in India.
|Maximum Deposits||No Limit||Up to Rs. 1 Lakh||Up to Rs. 1 Lakh||Up to Rs. 1 Lakh|
|KYC||eKYC with Biometrics, aadhar & pan card||eKYC with Biometrics, aadhar & pan card|
|Interest||7 %||4 %||7.25 %||5.5 %|
|Facility||default e-wallet can migrate to savings a/c||default e-wallet can migrate to savings a/c.|
|Debit Card||Visa Debit Card||Debit Card from RuPay free for first year||No Physical Cards, Withdraw and deposit through designated outlets pan India||Yes|
|Online Transfer Charges||Free and unlimited||Free of cost to and fro||Free within Airtel, free to up to 1000 and .5 % beyond that||free|
|Cash withdrawal charges||No fee to access your own money||Maximum 5 free, post Rs. 20 per transaction||0.65 % for each withdrawal||Unlimited at PNB and India post ATM’s, rest max 5 free, Rs. 20 post free for each transaction|
As is evident from the chart above, digibank offers the customer several advantages which payment banks do not even begin to compete with. Download digibank on the Play Store or App Store and you can start a truly digital banking experience in just 90s.