India's largest mobile operator Bharti Airtel has launched the nation's first payments bank in all 29 states, using its extensive network of retail stores as banking points.
The operator will invest an initial 30 billion rupees ($440.3 million) to develop a pan-India banking network and payments ecosystem for its mobile customers. Customers' mobile number will serve as their banking numbers.
At launch, the Airtel Payments Bank will use Airtel's retail network of around 250,000 stores in all 29 states of India as banking points. This is more than the total number of ATMs currently operating in the country.
Airtel plans to develop a nationwide digital payments ecosystem consisting of over 5 million merchants. The operator said 1 million are already on board.
The bank offers an interest rate of 7.25% per annum on deposits in saving accounts, and Airtel mobile customers will receive equivalent talk time for every rupee they deposit at the time of opening a savings account.
Airtel also rolled out its payments bank app for Android and iOS, accessible via the MyAirtel app.
“Just like mobile telephony leapfrogged traditional telecom networks to take affordable telecom services deep into the country, Airtel Payments Bank aims to take digital banking services to the unbanked over their mobile phones in a quick and efficient manner. Millions of Indians in rural areas will get their first formal banking experience with Airtel Payments Bank,” Bharti Enterprises chairman Sunil Bharti Mittal said.
“We are fully committed to... Prime Minister Shri Narendra Modi’s call to build a Digital India and lay a strong foundation for India’s transition to a cashless economy. Airtel Payments Bank will invest towards building a vast digital payments ecosystem with millions of merchants, and allow customers to make convenient cashless payments for good and services with their mobile phones.”