Should you open an account with a payments bank?

There has been an aggressive push for digital banking from the government, which has contributed to a surge in deposits and opening of accounts with payments banks. For instance, in 2021, the money deposited with Airtel Payments Bank shot up 75% to Rs 1,000 crore over the previous year. A payments bank is like any other bank, but operating at a smaller scale without issuing credit. The banks can take deposits of up to Rs 2 lakh, and they offer interest rates between 2.25 percent and 6 percent. Before opening an account with a payments bank, compare its following parameters with a regular savings bank account's parameters.