Payments Bank is a new type of bank, licensed by the Reserve Bank of India and it is a new model to encourage more people to open bank accounts. Payments Banks are different from a normal bank, it is not allowed to lend to customers. However, they can partner with other financial institutions to offer financial products like loans, insurance, mutual funds etc. Payment banks have a maximum limit of 1 Lakh and can now, give interest on the money deposited.
At first, I too didn’t completely trust this digital channel banking without physical branches. But after exploring the features provided by some of these banks, I am happy to share the benefits. While doing my research, I also came across digibank which is a fully serviced digital bank account by DBS.
Now, let’s compare various payment banks to digibank

PayTM Payments Bank
Airtel Payments bank
India Post Payments
Deposit Limit
No limit
Debit Card
Visa debit card with PayWave
Free for 1st year
No debit card

Free debit card free for 1st yr. 
 ATM Services
Free unlimited ATM
First 3 withdrawals free in metros, First 5 withdrawals free in Non-metros
0.65% charge / withdrawal.
First 3 withdrawals free in metros, First 5 withdrawals free in Non-metros
As per analysis there are few additional key features in digibank like Bharat QR, AI based Virtual Assistant, Free Unlimited money withdrawals at all bank ATMs, an active twitter handle for assistance, credit of interest on quarterly basis, closure of account from the mobile app itself, no fees on fund transfers, no fees on debit card, no limit on deposit etc.
It also uses tokenisation, where the verification happens automatically without human interference, for verification instead of OTPs via SMS. Once you open a savings account, you will get 7% interest rate for amounts up to Rs.1 lakh. The savings account can be used to open fixed and recurring deposits as well. Their support extends beyond banking. From expense trackers to purchase trends, Enable/disable debit card, online shopping from the dealers – all these features are available online through the digibank app.
There is a virtual assistant facility that you can use to get answers to queries. For instance, I asked ‘how to load money in the wallet?’. The response: Your account can be funded using your debit card, Internet banking or by transferring funds from another bank. Since it is a mobile banking app, to convert the App into a bank account, you need KYC. For KYC compliance, you need Permanent Account Number (PAN), Aadhaar and biometric authentication.
Bottom Line
Parents can easily transfer money to their children’s bank accounts, to meet their needs like fees and other expenses. Small firms can pay their salaries to their employees through digibank. No transaction fee as compared to normal banks is attractive for small businesses to switch over their transactions from normal banks to digibank. So, start using digibank, India's first “Digital only bank” and go paperless. It's available on the App Store and Play Store.

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