New Delhi: Airtel Payments Bank has launched 'Bharosa savings account' which enables customers to withdraw cash, check their balance or access a mini statement of their account at over 6,50,000 Aadhaar-enabled payment system (AePS) enabled outlets across India. These services have been designed for deepening financial inclusion in the country. "The benefits of this product will be further amplified through a structured roadway for phased introduction of other features linked to formal banking. To begin with, it will be available at over a quarter million banking points. Bharosa savings account customers can also withdraw cash, check their balance or access a mini statement of their account at over 6,50,000 AePS (Aadhaar-enabled payment system) enabled outlets across India," the company said in a statement.
Here are five things to know about Airtel Payments Bank Bharosa savings account:
1) Airtel Payments Bank has launched 'Bharosa savings account' which lets you open a savings account with just ₹500 minimum monthly balance.
2) Along with convenient banking services, Bharosa savings account offers ₹5 lakh personal accident insurance on maintaining balance of ₹500.
3) Airtel Payments Bank Bharosa Savings Account will allow you minimum one debit transaction per month.
4) Customers would also be eligible for cashback, if they decide to receive government subsidies in their Bharosa account or if they make cash deposits in it, the company said in a statement.
5) Airtel Payments Bank offers digital banking services through a network of 5,00,000 neighbourhood banking points spread across India.
What are payment banks?
According to the Reserve Bank of India guidelines for licensing of payments banks, the main objective of a payments bank is to enhance financial inclusion. This is expected to be done by providing small savings accounts. In August 2015, RBI had given in-principle approval to 11 entities to start payments bank in India, which included the department of posts. Airtel Payments Bank was the first one to launch it.
How is it different?
A payments bank is not allowed to give any form of loan or issue a credit card. Even in case of savings accounts, a payments bank has certain restrictions. Customers can open a savings account with deposits of only up to ₹1 lakh.