Paytm to commence operations of its payments bank on May 23

  • Paytm to commence operations of its payments bank on May 23

Paytm to commence operations of its payments bank on May 23

After much wait Paytm was able to bag the approval from Reserve Bank of India to launch its payments Bank services. In case consumers do not wish for that, they have to inform Paytm, which will in turn transfer the wallet balance to the consumer's bank account once such details are shared.

Vice President Renu Satti will takeover as the new CEO of Paytm Payments Bank, replacing Shinjini Kumar, according to The Economic Times.

Customers also have the option to discontinue availing of the services.

If you already have a Paytm wallet, you will be automatically transferred to PPBL on May 23, post which you will be able to use the money stored in your account to make payments and make transactions to other bank accounts.

The RBI had come out with the first set of guidelines for payments in November 2014, along with the rationale.

After a month delay now paytm is all set to start its payment bank operation from May 23. Also, you can not keep more than Rs 1 lakh in the Paytm payments bank.

For payment bank business of paytm that run under Paytm Payments Bank, it had around Rs 218 crore capital infusion. All such communication must be made before May 23.

Paytm was earlier slated to begin its payments bank operations around Diwali past year after getting an in-principle approval from RBI in 2015.

Paytm was initially planning to launch the Payments Bank around Diwali a year ago, in November 2016, but Airtel beat Paytm to become the first payments bank in the country to go live. Launching a payments bank will now allow Paytm to improve its digital footprint, and provide a lot of payments access to its customers. The rest of the shareholding is with Alibaba-backed One97 Communications.

In January, Bharti Airtel and Kotak Mahindra Bank announced the launch of Airtel Payments Banks, a joint venture between the two companies. This will help Paytm pre-empt possible government concerns about a Chinese company having a strong hold on Paytm and the financial services sector which is considered a strategically important sector. The company move to launch zero cost QR Code-based payment solution worked very well during the demonetization days and has been adopted by millions of merchants since then.