The payments banks can take savings deposits and remittances but are not permitted to lend
PPB account holders will soon be able to send and receive money using a UPI ID
Paytm is third firm after Bharti Airtel and India Posts to have launched payments banks.
Paytm plans to roll out 31 branches and 3,000 customer service points of the bank in the first year
Rate much lower compared to Airtel's 7.25% and India Post's 5.5%