Paytm's loss is Airtel's gain? Airtel Payments Bank sees spike in new customers

“Be it for fixed deposit, for bank account or for FASTag, all digital products are 5-7 times the January rates”: Airtel Payments Bank CEO

Published on: Feb 9, 2024, 21:44:52 IST

By HT News Desk

Prefer HTon Google

Share via

Copy link

Airtel Payments Bank has experienced a remarkable surge in new customers applying online for various services, including bank account openings and FASTags, over the past few days, according to its chief executive officer Anubrata Biswas, PTI reported.

Paytm Payments Bank sees gradual decrease in its customers.

ALSO READ- Paytm to form advisory committee on compliance, regulatory matters led by ex-SEBI head

While Biswas did not explicitly confirm a direct correlation to users shifting from Paytm Payments Bank following the RBI's action on January 31, he acknowledged the substantial increase in digital product applications.

The RBI directed Paytm Payments Bank to cease accepting deposits or top-ups in customer accounts, wallets, FASTags, and other instruments after February 29. Despite nudges and warnings over some time, persistent non-compliance with regulatory guidelines led to stern action against the fintech. The RBI has clarified that there are no systemic concerns.

ALSO READ- EPFO bans Paytm Payments Bank: What changes for customers?

Speaking about the performance and operational metrics of Airtel Payments Bank, Biswas said, "All our digital products, be it customers who have an account applying for fixed deposit, be it new customers applying online for bank account or customers applying for FASTag, all are 5-7 times the January rates. This has happened over the last few days."

The online application for digital products, such as savings bank accounts and FASTag products, has grown 5-7 times in the last few days, according to Biswas.

"There seems to be a swelling of uptake on Bank's products for whatever context there may be...," he said.

ALSO READ- Paytm crisis: No ED investigation either against company or CEO, company asserts

On the other hand, Paytm Payments Bank is reportedly witnessing a gradual decline in transaction volumes. Customers are uncertain about the future, contributing to the drop in transactions.

However, sources familiar with the matter suggest that there has only been a 10 per cent-15 per cent decline in transaction volumes handled via Paytm Payments Bank so far, reported Reuters.

If the pace doesn't quicken, there is speculation that the central bank may consider extending the deadline, it added.

ABOUT THE AUTHOR
HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

Stay updated with the latest Business News, stock market updates, petrol and diesel prices, gold and silver rates, income tax updates and major developments from India and across the world.