The Reliance is promoting Jio Payment Banks among its Jio customers. You may be wondering whether you really need to open an account in this bank. As most of the people might have an existing bank account. In this post, I would tell you the advantages of Jio Payment bank. So that you can take an informed decision.
Note, At the time of writing this post, the Jio Payments Bank is launched only for the selected users. So, Limited information is available in the public domain. Its site also provides very few information. So, Some of the benefits are based on the assumption. While some are taken from its existing website.
No Minimum Balance Requirement
You are not required to maintain a minimum balance in the Account of Jio Payment Bank. So, you do not need to worry about it. In fact, as of now, all the payment banks do not have a minimum balance requirement.
You may be aware that regular banks charge a hefty penalty in case you do not maintain a minimum balance in the account. Even, sometimes your account balance goes in negative because of this charge. So, you can take a sigh of relief. The Paytm Payment Bank also does not insist on the minimum balance.
Works With Any Telecom Operator
The Jio Payment Bank has the Word ‘Jio’ in its name. But, this bank is not restricted to Jio customers. It is not necessary to have a Jio mobile number for the account in this bank. Anyone can open a saving or current account in this bank. Do you know, you need an Airtel mobile number to open an account in Airtel Payment Bank. Paytm also does not have such limitation.
Useful – Airtel Payments Bank Customer Care
Quick Account Opening
It is very easy to open an account in the Jio Payment Bank. All the formalities of Account opening can be finished in 5 minutes. The whole process of account opening is digital. It 100% paperless. You don’t need the photocopy of any document. Rather you have to only give the Aadhaar number PAN number. The bank would use Aadhaar Based eKYC for authentication.
This would be similar to the Aadhaar linking of your mobile number. The same eKYC procedure is followed for the account opening.
Not only the account opening, the whole operation of the Jio Payment bank would be paperless. You are not required to fill any withdrawal slip for the cash withdrawal. All the application would be online and it would be verified by the Aadhaar based authentication. You would not be required to put your signature, rather a fingerprint scan would process the transaction.
70,000 Outlets Across India
The business model of a Payment bank is primarily based on the digital platform. Thus, the Physical presence of bank branch is not a necessity. As you may know that Paytm Payment Bank has only one branch in India. It does not have any retail outlet as well.
But, the Jio Payment bank Would have 70,000 outlets across India. These outlets would work as small banks. You would be able to withdraw cash from these outlets.
Because of these outlets, a Smartphone is not necessary for the transaction.
In fact, Jio can club the operation of its payment bank with Jio Digital outlets. The physical outlets would be beneficial to many as some people are still not very comfortable with an online bank.
No Penalties for Dormant Account
Like any other bank account, the account of Jip Payments bank also gets dormant after 24 months of inactivity. But, Jio Payments bank does not charge any fees for the reactivation of the dormant account. However, you may be required to again complete the KYC formalities. You know that it is very easy with the Jio Payment Bank.
Recharge and Pay Bill
You would have a Jio Payment App which gives you the facilities of digital payments. Using this app, you can transfer money to any bank account holder. You would be able to pay bills of more than 100 billers. The App would also give you the facility to recharge your mobile.
Higher Interest Rate
The Jio Payments bank has not yet declared its interest rate. But you can expect a higher interest rate from its saving bank account. I hope it would match the interest rate of Airtel Payment Bank. It is giving about 6% interest rate on the saving account. The Jio may give a higher interest rate than that. Well, Paytm is giving only 4% interest rate.
Offers and Discounts
The offers and discounts are associated with the Jio Name. So, definitely, you would find the good offers with the Jio Payments bank. The Jio mobile customer would enjoy the maximum benefit of offers. Also, you may get attractive offers when you shop at Reliance retail stores.
You may be also enjoying the offers from the BHIM, Paytm and Tez app. The Jio would also match these offers to promote is own fund transfer apps. Be ready for that.
Investment and Loan Facility
The payments bank can’t give a loan or open a fixed deposit account. But, the Jio Payment bank would give these facilities thanks to its partner bank. The Jio has partnered with the SBI, biggest banks of India.
If a customer wants to open an FD, the Jio Payment Bank would process the application but the FD account would be opened with the SBI. The similar formula would be also applied for the bank.
So, the SBI would provide the FD account and Loan, but you would deal only with the Jio Payments Bank. The Paytm Payment Bank have the similar agreement with the IndusInd Bank.