Airtel Payments Bank has increased interest rates on savings account deposit of over Rs 1 lakh. Customers will get an interest rate of 6% annum.
For deposits up to Rs 1 lakh, the interest rate will be fixed at 2.5% per annum. Airtel Payments Bank earlier enhanced day-end savings limit of Rs 2 lakh, according to Reserve Bank of India (RBI) guidelines. It has become the first payments bank in India to avail such a high limit of day-end balance to the users. All the deposits are secured under the Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly-owned subsidiary of the Reserve Bank of India (RBI).
Commenting on the latest hike in savings account interest rates, Anubrata Biswas, chief executive officer of Airtel Payments Bank, said, “RBI’s increased savings deposit ceiling is a major milestone for payments banks as this was a key ask from customers.”
With an “attractive” interest rate on deposit sums above one lakh, Airtel Payments Bank is making banking proposition even more rewarding, Biswas added.
The payments bank has over 5.5 crore engaged users across its operations, according to the company. “Our unmatched footprint of 5,00,000 banking points and a global first secure and simple experience delivered digitally, Airtel Payments Bank offers a market-leading proposition for both the urban digital and the rural underbanked customer,” Biswas pointed out.
Customers can open an Airtel Payments Bank account within minutes with a video call from the Airtel Thanks app. The bank offers a digital savings account – Rewards123, which offers more value to customers when they transact digitally using the account.