5 things to know about Airtel Payments Bank, now live

The country's first payments bank has opened operations in Rajasthan. Bharti Airtel, which was the first company to get the go-ahead from the Reserve Bank of India, to set up a payments bank, has rolled out banking services in Rajasthan. The pilot project will test systems and processes ahead of the full-scale pan-India launch, the company said in a statement. 

1) In Rajasthan, people from towns and villages across the state, can open bank accounts at authorised Airtel retail outlets. Airtel is offering 7.25% interest on savings accounts, possibly the highest by any bank in the country. There will be about 10,000 retail touch points. 

2) The payments bank account number of existing Airtel customers, will be their mobile number. 

3) The bank and banking services will be completely paperless; account opening will be quick and digital with Aadhaar based e-KYC. 

4) Airtel bank is giving Rs 1 lakh personal accidental insurance cover with every savings account. 

5) Airtel Bank targets expanding its merchant network in Rajasthan to 1 lakh by year-end. 

Payments bank were approved by former RBI Governor Raghuram Rajan, to put into place smaller, different banking models. In August 2015, 11 entities, including Bharti Airtel, Tech Mahindra, Paytm, were given an in-principle nod to set up operations. Three entities, including Tech M, Cholamandalam Finance, and IDFC Bank along with Telenor, tapped out of the race.