93 banks in India, with thousands of branches all over the country, but not a single bank to cater the needs of a start-up. Yes, you heard it right. In a country like India, where there has been a huge propaganda of initiating start-ups for individuals especially young college pass outs, there is not even a single bank in the country including private and public which can truly nurture what a start up desires and cater to their needs in the right way.
Our prime minister, Narendra Singh Modi, called out for the people in the country, especially the young generation to stop taking jobs in MNCs, and give something to their own country. He initiated the slogan that said, Stand Up India, Start Up India. Well, when you see the bigger and far away picture, you will find a number of start-ups rising in the country. However, taking a closer look, you will be able to see the real picture of the start-ups in the country.
Hundreds of start-ups were initiated in the country, and out of it only 1 per cent of the start-ups are able to flourish during the course of time. There are a number of reasons why this happened. However, one of the major reasons which caused the failure of start-ups is the bitter facility provided by the banks. Banks have probably made getting loan easier from banks, but what about the other needs of the start-ups. What about flexibility in cash withdrawal, and liquidity? What about cash in hand, and cash at bank flexibility? Well, all these questions remain answered.
For a person in start-up, or business, he or she has to compulsorily initiate a current account in banks. The scenario of opening a current account in the nation involves locking of a capital amount in the banks to maintain a minimum balance.
This goes as well for the savings account as well. For people who are just starting a business, will never wish to lock any of their capital amount in a bank which they cannot use and which does not have liquidity. For most banks, the minimum lockdown balance is around 25,000 INR which for a start up is huge. Locking down such an amount makes no sense for a person who need as much cash as possible in his or her hand. Thus, the banks in whole of the country failed to understand what it takes to initiate a start-up, and provide what the country men needed.
For a beginner, it is quite a difficulty if they have to maintain a minimum balance in their current account. Thus, they either face difficulties in their current account and start up providing, or simply put down their current account due to the major issues which hamper their work.
Now, the big question is, if you, as a country want your country to develop, then how can you expect them to grow, if you cannot be cooperative enough for start-ups to get the right kind of facility and opportunity to do so without having to take so much trouble. The trouble will definitely kill their willingness to work in a start-up and they will probably switch to something easier, which is a JOB.
However, there has been a change, recently! Catering and locating to the problem that the start-ups face in opening and maintaining the current account, there has been a productive decision which has come down to cater small business, sole proprietors, and also start-ups, for being able to maintain a current account without any minimum balance. Yes, you got that right!
Paytm is bringing the facility of opening and maintaining a current account for people without having to keep a minimum balance once and or all. Is it not great? In the span of more than a decade, not even a single bank in the whole wide country has been able to do such a thing to promote and motivate the start-ups. Now, this company which has just come to life a few years ago, has understood the needs of the country, and brought something which needed to be done so long before.
Here is all that you need to know about Paytm current account opening and maintaining.
In 2019, January, Reserve Bank of India has allowed Paytm to start with their account opening service again.
The company is targeting over 40 Mn SMEs in the country by providing them current account facility without having to maintain a minimum balance
This facility provided by Paytm will be adequate in catering the needs and requirements of the individuals and entities who were unable to meet the minimum balance requirements of various banks all over the country.
The company will also offer many other features along with zero balance current account such as free debit card, free digital transactions unlimited, and many more.
The new features of Paytm will be helpful in targeting individuals, small businesses, and other sole business owners who were not able to meet the banks’ requirements.
The CEO of Paytm Payments Bank quoted. “There are large number of small businesses who do not have a current account or do not actively use their current account for everyday payments. With our current bank account offering, our company aims to provide the best in class banking facilities to businesses, especially small and micro enterprises,”
There is no cap on any amount transactions and amount deposits which are made during a day for a current account. There is also the feature of unlimited cash deposits which will be helpful for small merchants who usually are paid in large chunks of payments in liquid form or cash.
With that, we believe that the scenario of start-ups will definitely change and bring in more flexibility and betterment for years to come.