HIGHLIGHTS
- Introduction about the aitel payment bank.
- In this article, we understand about the working of airtle payment bank.
- Advantages & Disadvantages of Using Airtel Payments Bank.
Being a subsidiary of Bharti Airtel, Airtel Payments Bank is a convenient way to introduce banking based on digital principles in India. Starting with an aim of offering easy and affordable Banking Services, Airtel Payment Bank has a great reach being a part of the telecom network Industry and in reaching out to the unserved & uncovered markets. Other services such as real-time money transfers, savings accounts with interest, and effortless utility bill payments, provide financial solutions intending to facilitate millions of unbanked and underbanked populations across the country.
Table of Contents
Introduction
Airtel Payments Bank, which is a venture from the Bharti Airtel group, is set to revolutionize the banking sector due to its fully digital products. Established with this vision of replacement of conventional style of banking it combines technology with the banking process to cater to the needs of its clients. In today’s universe of rapid development in the financial market online banking is obligatory for providing fast, unproblematic, and easily accessible services that meet the requirements of the contemporary consumer.
The need for digital banking cannot be overemphasized because of the ease of carrying out financial transactions and services hastened by this innovation and made far from the physically-based banking services that require the customer to visit the bank. Some of these advantages include, Airtel Payment Banks has been able to provide the following key features to increase the convenience of the product being used. Among these are the real-time money transfers where people can send and receive money immediately making the monetary transactions faster. Second, the bank avails easily accessible and convenient interest-bearing savings accounts that may safely accommodate users’ funds to enable them to earn some interest while encouraging the culture of saving among the users.
Background and Inception
History of Airtel Payments Bank
Founding Date:
Airtel is a Payment Bank which is a subsidiary of Bharti Airtel, launched on 12 January 2017.
Parent Company (Bharti Airtel):
It operates under the umbrella of Bharti Airtel one of the giant Telecommunication companies in India. Airtel is an INDIAL firm delivering new and available services across huge areas of the country.
Objectives at the Time of Launch:
Airtel Payment Bank was designed at the start to alter the possible future of banking services through digital solutions. These goals were identified as the firm’s key objectives, to extend the possibility of banking operations for persons who do not have active banking experience or possess limited possibilities for such operations; to provide an easy and convenient means for obtaining the necessary financial service or solution with the help of digital platforms; to enhance the existing aspects of banking such as instant money transfers, interest-bearing savings, and prompt utility payments.
Hallocation’s goal was to bring banking services as close as possible to the difference between what traditional banking provided the constantly growing spirals of social functionality in cyberspace to the convergence of convolutions in the mass populace in any situation possible.
Understanding Airtel Payments Bank
Definition and Core Services
What is a Payments Bank?
A Payments Bank is a type of new-generation universal bank that has been authorized by the Central Bank of India and are champion of digital transactions.
Payments bank in India is a type of new-generation bank that does not have full operating capacity like large full-fledged banks. It is set up to offer basic banking products for deposit taking, transfer of funds, and payments and is prohibited from offering credit or cards. Thus, the idea of payment banks seems to have a specific aim of increasing the financial transactions of one’s account and performing varied banking operations connected with the unbanked as well as underbanked segments.
Primary services offered by Airtel Payments Bank
The services offered by Airtel Payments Bank are correspondent banking services that must embrace all the required solutions for the customers. These include followings
- Instant Money Transfers: Online money transfers: Will allow for ease and quick movement of money from one account to the other.
- Interest-Bearing Savings Accounts: Its reasonable provision for deposits is done by lowering the interest rates on the deposits that are offered to customers.
- Utility Bill Payments: Enabling the consumer to be able to pay for their utilities by directly transacting with the bank from the online application.
- Mobile and Digital Banking Services: Cooperating with banks to provide a reliable mobile and internet base, for banking through the use of mobile phones and other online facilities.
- Insurance and Micro-Insurance Products: Insurance products provide a kind of financial protection to the user.
- Insurance and Micro-Insurance Products: Offering insurance products to provide financial security to users.
Differentiation from Traditional Banks
No Physical Branches
Airtel Payments Bank is also different from normal banks that locate their banking halls now and then. This branchless model cuts down bureau expenses and opens the door to those inevitably distant physical territories that the bank can reach tactually digitally.
Emphasis on the Digital and Mobile Banking
Airtel is majorly a digital and mobile bank focused on payment banking, it aims at utilizing the telecom arm of Bharti Airtel. This focus makes it possible for customers to transact in their banks through mobile phones and other digital gadgets conveniently.
Limited services compared to traditional banks
As for the services it offers, users can deposit money, request a check, pay a check, convert dollars to a particular currency, and withdraw money in cash in its basic version which is quite similar to a check-cashing service provided by a traditional bank.
Since Airtel Payments Bank is a relatively new bank, it provides only a limited number of services compared to the traditional banks, that offer loans, credit cards, and many more financial products. It does not offer loan products or Credit products but offers deposit products, payment systems, and other products. This kind of specialization enables the bank to operate namely in one market niche, which means that it offers basic services that customers can easily understand, rather than a broad range of services they might have trouble with.
Key Features of Airtel Payments Bank
Digital and Mobile Banking
Display of the Mobile App and the website
Airtel Payments Bank also offers a mobile Android application and website platform through which customers can check their accounts and do transactions smoothly. A primary user-interface focus is inherent in digital platforms, meaning that the navigation is smooth, and all the banking services can be executed effortlessly.
USSD and digital payment options
Since internet borrowing is not possible, Airtel Payments Bank provides a USSD (Unstructured Supplementary Service Data) code to facilitate the communication between the bank and the user’s mobile phone for various banking transactions. Also, there are provisions for the usage of Internet banking, particularly under the UPI (Unified Payments Interface) and QR code-based payments, which ensure the transaction process is hassle-free.
Interest Rate and Charge
Interest Rates on Savings
It has a single fresh financial scheme for its savings accounts offering a moderate interest rate to tempt Airtel Payment customers to save their money and gain out of it. Their interest rates are normally well positioned to appeal to different customers from the urban population to the rural dwellers.
Transaction Fees
The bank has a clear and fairly straightforward fee schedule for all its services. Transfer and payment charges such as transaction fees, sending money, paying bills, and other expenses are kept to a minimum range such that it positively impacts every client especially those from the less developed regions of the globe.
Accessibility and Convenience
A nationwide network of banking points
Airtel Payments Bank has expanded a very wide network for banking points like binding with retail shops and Airtel outlets all over India. Thus, through this extensive network, banking services get delivered even to those regions of the country that are considered to be the most under-banked or most rural by traditional banking institutions.
24/7 Accessibility
Airtel Payment Bank service is available online and through the mobile application, meaning clients can access banking services at any time, day and night. It enables clients to carry out transactions, check balances, and conduct other operations in banking without restrictions as to time, which is very convenient.
Banking Services Offered
Savings Account
Other facilities included are the savings account which he stated came with a high interest rate and no balance cheques. Some of these accounts are developed in the form of achieving the goal of banking the unbanked population.
Digital Wallets
It avails digital wallets to its clients, with the feature of improving easy and safe transactions on the internet that are used in buying goods and services and paying bills among other uses.
Money Transfers
Through the Airtel Payments Bank, one is in a position to transfer money both locally and internationally. Customers can easily and securely transfer money to other accounts of different banks or other Accounts of Airtel Payment Bank.
Bill Payments and Recharges
The bank offers an easy way of paying bills such as those incurred in the usage of various utilities such as telephones, water, and electricity, among others, and also recargas of cellular telephones and other payments. This service arises to ease the payment structure for customers thus avoiding numerous instances where one would have to top up via several outlets.
Opening and Managing an Account
Details procedures on how to open an account
Eligibility Criteria
Forming part of the micro-credit sector regulations of India, to open an account with Airtel Payments Bank, a candidate has to be an Indian resident and at least eighteen years of age. Also required at the time of registration, is a valid mobile number and proof of identity.
Required Documents
- The necessary documents for opening an account include:
- Aadhaar card (for Know Your Customer process)
- PAN card or Form 60, if PAN is not obtainable.
- Recent passport-sized photograph.
Step-by-step process (online and offline options)
Online: To open an account, go to their official website; www.airtelpaymentsbank.com or download their mobile application.
- Go to “Open Account” and input your mobile number and Aadhaar number.
- Final steps to complete the KYC which include OTP verification and uploading the necessary docs.
- Create your username and password and begin with the use of your account.
Offline: You can either contact the nearest Airtel store or a banking point to get it done.
- When interactively talking to the agent, check the ID status by providing him/her your mobile number and Aadhaar number.
- With physical verification of documents, you complete the process of identity check and other necessary procedures.
- Once this verification is complete, an e-mail is sent to the user containing the details of the account and the account can then be used.
Managing Your Account
Using the Mobile App
The key aspects mentioned for using the Airtel Payments Bank mobile app have made it possible to easily manage accounts. At the same time, every user can monitor the remaining balance, transaction activity report, as well as other banking services available at the application.
Accessing Account Information
Inquiries including balance checks and mini statements can be done through the mobile application, USSD code, or online banking. Account activities can also be notified to keep you up to date.
Making Transactions and Payments
Sometimes it also facilitates money transfers, bill payments, and mobile recharge, and all such services can be managed through the app/website. The operation of the process is safe, efficient, and easy to handle to give the best and most convenient banking process.
Security and Safety Measures
Data Encryption and Security Protocols
Measures to keep user data secure
This is done by using one of the most secure payment systems in that we employ state-of-the-art data encryption to ensure that the data belonging to our users doesn’t fall into the wrong hands as shown by Airtel Payments Bank. They have end-to-end encryption on all transaction which provide security to the entire transactions and information is not open to third parties.
Two-Factor Authentication
Two-factor authentication is used to provide more security to the application used in the bank. This involves using something one knows such as the password/PIN, in combination with something that one has such as the OTP sent to the registered mobile number, making the account almost hacker-proof.
Fraud Prevention Strategies
How Airtel Payments Bank’s approach to fraud prevention works
Airtel Payments Bank has laid down basic mechanisms to check fraud so that the transaction process does not look like it is taking place. In this regard, the bank uses machine learning agents and monitors the fight against fraud in real-time.
User tips for staying safe
- This should consist of different and strong passwords for the accounts and should attempt to change after a period.
- It is advisable to maintain utmost secrecy of OTPs, PINS, and any account numbers, to any persons.
- Some functions assist in toggling on the transaction notifications to be informed of any activity on the account.
- The author wakes the reader up with the message that it is unsafe to do any banking business related to the use of WI-FI.
- It is also very important to have a habit of checking the account statements more often in other to realize or to note some fraudulent activities.
Advantages of Using Airtel Payments Bank
Accessibility
Airtel Payments Bank offers financial services to excluded persons serving mainly in remote and rural areas through its wide range of banking agents and digital platforms.
Convenience
The virtual-first approach enables customers to perform banking transactions at any time, anywhere using the mobile app, website, or USSD codes providing exceptional convenience.
Speed
Fast cash transfers and quick bill payments make financial operations simple cutting back on time spent by customers.
No Minimum Balance Requirement
Airtel Payments Bank does not insist on a minimum balance unlike traditional banks thus making them an attractive option for those with low incomes.
Attractive Interest Rates
The bank has competitive interest rates for savings accounts making customers save more while earning returns from their deposits.
Integrated Digital Wallet
It allows easy and safe transactions for shopping, recharges, and other payments thereby improving user experience in general.
Enhanced Security
Airtel Payments Bank ensures that it maintains a secure banking environment for its clients through advanced encryption, two-factor authentication, and robust fraud detection systems.
Challanges & Limitation
Limited Range of Services
Compared to full-service banks
Airtel Payments Bank has several advantages but lacks services that traditional banks have. Full-service banks offer a variety of financial products like personal and business loans, credit cards, and other investment options as well as more comprehensive wealth management services.
No specific Services provided
Lack of Loan Facilities: Airtel Payments bank does not lend money which is such a huge drawback for any customer who needs it for either personal or business purposes.
Lack of Credit Cards: It also does not give out credit cards like other complete service banks, hence limiting its customers’ credit choices.
Fewer Investment Options: The bank itself does not have an investment product line that would include mutual funds, fixed deposits, or stock trading which are typically found in most traditional banks.
Branch Services: There are no physical branches where consumers can get face-to-face assistance from the firm about personalized finances because they are mostly available at typical banking places.
Conclusion:
Some benefits that Airtel Payments Bank offers are: accessibility, convenience, and security in online banking; the ability to instantly transfer funds with an account bearing interest and the possibility of paying for all services without problems. Its large number of outlets and friendly digital platforms make it popular among customers from both urban centers and remote areas. Based on its advantages, the bank’s clients should find out about the services it offers to improve their banking experience.
In today’s financial world where digital payment banks have become highly prevalent, they have a significant impact, especially concerning inclusive finance as well as the creation of innovative solutions that meet emerging client demands.
FAQs
What kind of bank is Airtel payment bank?
Digital bank – Airtel payment bank runs without paper. It’s all digital. To start an account with Airtel payment bank, you just need an aadhaar card and KYC. You don’t need any other papers to open a bank account.
How many people use Airtel payment bank?
Airtel Payments Bank’s MD and CEO Anubrata Biswas told PTI that the company got about 35 lakh new customers during the year and reached the 10-crore customer milestone in 2021. “The increase in deposits shows that customers trust us.
