Putting Money in A Payments Bank? Aware of What To Do?
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The Airtel Payments Bank (APB) allows the user not only to pay bills for utilities and recharge mobiles, but also to make financial transactions such as online money transfer, running a current or a savings account, and more – all through a simple download on your mobile. With services that almost replicate the ones offered by a conventional bank, APB’s seems to have taken the idea of banking to a whole new level. To be honest, the app is not much more than just a bank, a wallet or a mobile app – it’s in fact a one-stop-solution for all of the above.
Let’s look at some of its features in an attempt to learn how APB works
- Works Exactly Like a Savings/Current Bank Account
That’s true! The Bank indeed serves as a savings/current bank account, all thanks to the Reserve Bank of India. The RBI has permitted payment banks to accept deposits and open current and savings accounts. That’s not all. Airtel Payments Bank offer a whopping 7.25% interest rate on funds deposited in its savings / current account, which is by far the best rate of interest offered at present by any financial institution.
- Transactions Akin to Brick-and-Mortar Banks
The Bank facilitates deposit and withdrawal of money just like conventional banks do. There are “Airtel Banking Points” installed in almost every city, with the numbers adding up by the day. One can deposit or withdraw money at these Banking Points by providing their registered mobile number, which also serves as the payments bank account number.
- Saves the Trouble of Carrying a Physical Card
Much like the case with traditional banks, the Airtel Payments Bank offers a debit card too to all its customers. However, the card in question here is a virtual one instead of the Visa/ Master / Maestro cards that we are much acquainted with. But then again, these virtual cards work more-or-less the same way as the magnetic strip cards – one can shop online, pay bills for mobile and utilities, withdraw cash (at Airtel Banking Points), pay at shops and restaurants and almost everything else under the sun. The plus point – these cards come sans the risk of losing them!
- Free Insurance
Signing up for the Bank comes with a bounty of rewards. For the first 4 transactions done through the wallet, Airtel rewards the customer with 5% cashback. And that’s not all. Every subscriber gets a personal accident insurance cover of Rs.1 Lac – and that too, totally free of cost!
- Paperless services
The Bank is in a way eco-friendly, so as to say, and averts risks in a number of ways. It works much like any internet banking service, proffering cashless purchases, cheque-less transactions through your smartphone, online money transfer, automated bill payment so that you don’t miss your due date, and much more. And all of the above is done without the need to use paper.
To sum it up, the Airtel Payments bank is the next big thing in India. It is highly likely that the APB will soon revolutionize the way banking operations are carried out in the country. With a bounty of benefits that it is credited for, the day is not far when payments banks will stand at par with conventional banks after dealing with its current shortfalls categorized by a lack of fixed / recurring deposit facility, a credit/ loan facility etc.
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