Paytm Payments Bank was launched in May with a branch in Noida, and the company had said it will expand to 31 branches and 3,000 customer service points in the first year.
The bank will offer an interest of 4% per annum for savings accounts, which is lower than what Airtel and India Post are offering. Airtel offers the highest interest rates of 7.25%, while India Post is offering interest rates between 4.5-5.5%. Fino Payments Bank, which started operations last month, is also offering 4% interest rate on savings accounts.
Aditya Birla Nuvo and Reliance Industries are also set to launch payment bank operations soon.
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