The Reserve Bank of India has given its approval to Paytm which is India’s leading digital wallet service provider to begin its payments bank operations. This payments platform which is based in Noida received its final license from the central bank and said to begin bank operations next week.
Paytm Payments Bank Limited will begin its banking operations from May 23, 2017. As per the Central bank’s guidelines, the company will transfer its wallet business to the newly incorporated payments bank entity under a payments bank licence presented to Founder and CEO Vijay Shekhar Sharma.
RenuSatti is appointed as the CEO of Paytm Payments Bank who is currently the vice-president of business at Paytm.
Under the payments bank licence, Paytm wallet users will be transferred to Paytm Payments Bank unless the user chooses otherwise. The amount can be transferred to his/her bank account by providing these details like name of the account holder, account number and IFSC code.
If you are a Paytm user, 5 things you should know about:
- Paytm’s wallet business will now be a part of a new company. Your money will be automatically transferred to the Paytm Payments Bank Limited.
- The Paytm app user experience remains the same and you can continue paying for taxi, fuel, food, etc.
- The Paytm payment wallet will move to the Paytm Payments Bank Limited in the same capacity. They will have the option of discontinuing their wallet services with due communication sent to the company by May 23.
- If you opt to open an account with the new payments bank of the company you will receive chequebook, debit cards etc. The company will give you an option to open a separate account in which u can earn interest on your money.
- The payments bank will be different from your regular bank account. It can neither offer you loans nor it can issue a credit card. Also, you cannot keep more than Rs 1 lakh in the Paytm payments bank. Image: indiatimes.com
Paytm Payments Bank was registered in August 2016 as a subsidiary of One97 Communications with Sharma holding a 51 per cent stake in the company. For the first five years, the stake of the promoter in payments banks should be at least 40 per cent, RBI guidelines say.
Other companies that bagged licences includes Reliance Industries, Aditya Birla Nuvo, Fino Pay Tech Ltd, and Vodafone m-Pesa.