Payments banks: Interest rates shouldn't be a decisive factor

Why would someone who has a savings bank account with a regular commercial bank open an account with one of the new payments banks?

A commercial bank offers a lot more products and services than a payments bank can. However, the latter will offer seamless transactions. Customers will be able to do all types of payments, even buying vegetables or shopping in your local grocery shop, through a payments bank.

This is what Paytm, which launched a payments bank earlier this week, is banking on. “We offer a combination of zero minimum balance, zero charges on digital transactions, a competitive