What Airtel Payments Banks cash withdrawal charges mean for you

Airtel Payments Bank is a differentiated bank which offers only savings account to the customers. In 2015, the Reserve Bank of India (RBI) gave license to 11 companies for opening payments bank, including Airtel.

The primary objective of the government to launch payments banks is to reach out to the unbanked people of small villages and towns. Airtel Payments bank is a joint venture between Bharti Airtel and Kotak Mahindra Bank and has gone live with 250,000 banking points through their retail stores.

What are Airtel Payments Bank cash withdrawal charges

Airtel Payments bank comes with specific features regarding deposits, withdrawals, and interest rates on savings account.

The cost factor on savings account

Though there are no charges on depositing funds in the Airtel Payments bank account, the customer is levied with transaction charges on withdrawing funds.

When you withdraw an amount between INR 10 - INR 4000, you have to pay from INR 5 - INR 25 as the fee. And if the withdrawal amount is above INR 4000, then the charges are 0.65% of the withdrawn amount.

Fund transfer from one Airtel Payments bank account to another through Airtel Money app or online banking is entirely free. However, customers are required to pay 0.5% of the transferred amount if the transaction happens between Airtel bank account to another bank account.

Further, if the transaction is between Airtel bank account to another bank account at a retail bank point, the charges are 1% of the transferred amount. In fact, if a customer wishes to close his/her Airtel Savings account, he/she is required to pay INR 50 for the same.

Moreover, Airtel Payments bank also offers free talk time to the customer equal to the amount deposited in his/her Savings account. For instance, if you deposit INR 500 in your account, your mobile number will be credited with 500 minutes free talk time. However, this feature is only applicable on deposits made for the first time in the account.

Anyone with an Aadhaar card can open Airtel Payments bank account with a minimum deposit of INR 100, whether he/she is an existing Airtel subscriber. If you are an Airtel subscriber, your mobile number will work as your Airtel Bank account number.

What is Airtel Payments Bank Interest Rate on savings accounts

Airtel Payments bank also offers its customers interest rate on maintaining a Savings account. Unlike the other banks, Airtel bank is offering the maximum interest rate of 7.25% on the deposits in savings account.

Currently, the interest rate by Airtel Payments bank is the highest as banks like SBI and ICICI are offering only 4% - 7.1% interest rate on Savings account.

Customers can easily access Airtel banks service from their mobile phones either through Airtel money app, through IVR by dialling 400, or through USSD by dialling *400#. In fact, customers can also call on 8800688006 for the various Airtel Payments Banks services.

Demonetization not just pushed mobile wallets and digital payment modes, but Payments banks as well. Airtel Payments bank aims at catering to the small scale businesses, unorganized entities, and low-income households.