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Airtel starts India's first payments bank service, to pay 7.25% interest on deposits

Begins pilot in Rajasthan; customer's Airtel mobile number to be his or her bank account number

BS Web Team & IANS  |  New Delhi/Jaipur 

Airtel starts India's first payments bank service, to pay 7.25% interest on deposits

has launched India's first live on Wednesday, which would provide an interest of 7.25% per annum on deposits.

Aimed at testing systems and processes ahead of a full-scale pan-Indian launch, has rolled out a pilot of its services in Rajasthan, a company statement said on Wednesday. is a subsidiary of

It informs that account can be opened with Aadhaar based paperless e-KYC, with no extra documents required and customer's mobile number would be his/her bank account number. The company intends to give an interest rate of 7.25% per annum on deposits in savings accounts.

"Customers in towns and villages across will now be able to open bank accounts at retail outlets, which will also act as points and offer a range of basic, convenient services. Bank will commence the pilot with points at 10,000 retail outlets," the statement added.

It adds that extra benefits like money transfer to any bank account in (Free money transfer from to numbers within Bank), personal accidental insurance of Rs 1 lakh with every savings account, easy deposit and withdrawal facility across a wide network of retail outlets, will be availed to the customers.

It also claims that the company will have a network of over 100,000 merchants (shops) across accepting digital payments from Payments Bank, offering customers the convenience of cashless purchase of goods/services using their bank accounts/ wallets, contributing to the government’s initiative of financial inclusion and for all.

First Published: Wed, November 23 2016. 14:34 IST