The concept of mobile banking, though fairly common in many countries, is very new in India. Airtel Payments Bank is the pioneer mobile bank in India, allowing Airtel users to have a bank account on their mobile phones, access the account online, get equivalent talk time whenever they deposit and earn up to 7.25% interest on their savings. This is a great innovation that came from a lot of research about the current banking situation in India.
The Rationale Behind Airtel Payments Bank
In the year 2015, Price Waterhouse Coopers (PWC) did a study on the banking situation in India and found that 233 million Indians either do not have a bank account or are underserved. The study raised a lot of disturbing questions which Airtel sought to answer.
This was an undertaking that had never been done before in India and the challenge was daunting; it was like traveling without a navigation map. However, after a lot of consideration, Airtel Payments Bank was launched in an effort to bring financial inclusion to Indians, especially those who could not access traditional banking services.
The Creation of Airtel Payments Bank
First of all, a Payments Bank is one that provides fundamental financial services to its customers. Bharti Airtel saw this as a way of providing banking in the simplest and most innovative way to all Airtel customers through its subsidiary Airtel Payments Bank Limited, formally known as Airtel M-Commerce Services Limited (AMSL); Kotak Mahindra Bank Limited is also a partner in this venture. Airtel is the first company to ever get a Payments Bank License from the Reserve Bank of India.
The Airtel Payments Bank Savings Account
This is a bank account that only requires a mobile phone and an Airtel service number; you do not have to worry about check books, deposit slips, withdrawal slips, and all else that you get in traditional banks. The Airtel service number becomes the account number and the minimum deposit has been capped at Rs. 1 Lakh per customer. You can open the account from whichever location you are in within the country by simply downloading the “My Airtel” mobile app and following a few simple steps.
The Key Features of Airtel Payments Bank Savings Account
- Easily Accessible – When you download their mobile app, you can access the account easily from any location in India.
- Insured Customers – When you get the account, you get a free Personal Accident Insurance Cover for up to Rs. 1 Lakh.
- High Interest Rate – You get a maximum interest rate of 7.25% on your savings.
- Talk Time Recharge – When you make a deposit, you get an equivalent recharge of your Airtel Talk Time.
- Aadhaar Card Benefits – You can instantly open this savings account with the Aadhaar Card.
- Real-time Alerts – Whenever you make a transaction, you get an SMS message on your phone and an email, showing the details of the transaction.
- Convenient – You can send and receive money from other customers wherever you are.
- A lot of Extras – This is an account that is accepted at over 5 million outlets all over the country and you get great deals and coupons from time to time.
- Online Debit Card – You instantly get an Online Debit Card that you can use for shopping, paying bills and recharging your airtime.
Opening an Airtel Payments Bank Savings Account
1. Through My Airtel App
- Download and install the “My Airtel” app.
- Click on “Payments Bank” and then complete the one-time registration. Add your name, mobile number and email address and then click on “Register Now”.
- You will get an SMS with a verification code which you send via your mobile phone and the account is verified.
- After verification, get a 4-digit PIN number and your wallet will now be activated.
- Go to your wallet and then click on “View Profile” and then select “Apply for Savings Account”.
- Enter your Aadhaar Card Number and then click on “Proceed” so the account can be opened.
2. Through Airtel Outlets
- Go to any Airtel outlet and say you want a new Airtel Payments Bank Savings Account
- They will simply do a biometric scan of your finger, and your account will be opened within 3 minutes.
Why Should You Get an Airtel Payments Bank Savings Account?
Getting this savings account offers you a wide array of benefits that you would not get when you open a savings account at a traditional bank. Here are some of the benefits that you will get:
- All transactions less than Rs. 10,000 per day are free; above this amount, you will only be charged 0.5% of the funds transferred.
- For cash withdrawals, you only pay a fee of 0.65%, which is quite low compared to the fees paid in traditional banks.
- The account is available for Airtel and Non-Airtel customers, availing banking services to virtually every mobile subscriber in India.
- You can access the banking services at any time and from any location.
- You get an online debit card that you can use to pay bills, buy airtime and shop.
- Every account holder has a free Personal Accident Insurance cover.
- You get access to over 5 million outlets in the country and great deals and coupons.
It is not easy to get access to traditional banking services, especially in the rural areas of India. People doing business, or expecting money from their friends and relatives have no access to banking services and this can be inconvenient. Airtel Payments Bank has filled in this gap by offering a savings account that is operated using a mobile phone. The account is available to all mobile subscribers, irrespective of which mobile carrier they use.
Even if the concept is new in the country, people will see that it is a convenient and safe way to bank and make cash transactions without having to go to a brick-and-mortar banking facility. The future of this service is bright and residents of India stand to benefit immensely from having an Airtel Payments Bank Savings Account.