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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 Airtel 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 Airtel retail outlets, which will also act as Airtel points and offer a range of basic, convenient services. will commence the pilot with banking points at 10,000 Airtel retail outlets," the statement added.

It adds that extra benefits like money transfer to any bank account in (Free money transfer from Airtel to Airtel numbers within Airtel Bank), personal accidental insurance of Rs 1 lakh with every savings account, easy deposit and withdrawal facility across a wide network of Airtel 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 Airtel 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 banking for all.

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