The Airtel Payments Bank saw an increase in business in the financial year 2020-2021 due to the completion of the Covid lockdown and migrant workers who were going back to the villages started new accounts as well as transactions. The company is expecting a break-even during the present financial year. The potential factors driving the break-even are growth revenues, expanded operations and higher-earning per cross-selling of products.
The epidemic and accompanying lockdown limitations fueled penetration as people sought banking alternatives closer to home, preferring simple and safe digital payment methods. The bank's diverse product offerings, which include digital payments, money transfers, insurance, direct benefit transfer credits, an Aadhaar-enabled payment system, and collection management services, have seen considerable momentum.
The company has built an appropriate infrastructure to service consumers, supported by technological developments, and so fixed expenses and additional investments are projected to keep under check. COVID-stimulated movement Restrictions and curfews in various regions of the nation have made it impossible for individuals living in villages, as well as migrants returning to their hometowns, to withdraw money from traditional bank branches situated some distance away. According to a business spokesperson, Airtel Payments Bank, which has one of the largest retail networks with over 500,000 neighbourhood banking locations, experienced a significant increase in new account openings during FY 2020-2021, while transactions also increased. Airtel Payments Bank currently serves one out of every six communities in the country. The business anticipates that the digital payment trend will continue, if not accelerate, in the next years. Airtel Payments Bank stated earlier this year that its clients will receive a 6% annual interest rate on savings account deposits of more than Rs. 1 lakh. The announcement came in May of this year when Airtel Payments Bank became the first payments bank to adopt an increased day-end savings maximum of Rs. 2 lakh in accordance with the Reserve Bank of India (RBI) rules. The rate of interest rate is at 2.5 per cent per annum for a deposit up to Rs. 1 lakh.