The Payments bank introduced as part of the government's drive of financial inclusion is one of the two categories of Differentiated Banking that got RBI's nod. Until date, the banks are offering deposit facilities to customer segment that are left uncatered by other bigger financial and banking institutions. Such banks also do not provide lending facilitie.

Now, with respect to the Fino Payments Bank Ltd. which started its operations this week, there are in all four Payments Bank in the country. The other three being Airtel Payments Bank, India Post Bank and PayTm Payments Bank.

Interest rates on S/B A/cs with the bank are kept at par with other large commercial banks and Paytm Payments at 4%. Other Payments bank including Airtel and India Post are offering interest rate of 7.25% and 5.5% respectively.

Cash deposits as well as withdrawals

For deposits made as well as withdrawal, the new bank would offer two free transactions in a month. Post that the bank will be charging, Rs. 5 for each Rs. 1000 deposited or withdrawn from the bank. It is to be remembered that such charges shall apply in case the transaction is executed at a branch or merchant outlet. Further, to make it more clear, an amount equal to 0.6% of the transaction amount or Rs. 5 whichever is higher shall be payable.

Transactions at ATMs

For its ATM transactions, Fino Payments Bank has collaborated with ICICI Bank. The charges will be as per standard norms, which provides five free transactions in non-metro cities and three in a metro city. For non-financial transactions the charges are Rs. 8 and Rs. 20 for any financial transaction done using the ATM.

Debit Cards

With an issuance charges in the range of classic and platinum cards, the new bank shall offer Rupay debit cards.

These banks will soon be catering its customers with third-party products that include insurance, mutual fund and loans.

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