24 June 2017
download the report now

Paytm gets RBI nod for payments bank launch

03 January 2017  |  6193 views  |  0 India, Rajabi Clock Tower

Indian mobile wallet giant Paytm has received the regulatory green light to begin operating one of the country's new wave of payments banks.

In a bid to take advantage of the mobile revolution to increase financial inclusion, India's government recently began inviting firms to apply for so-called 'payments bank' licences.

These new players, taking on traditional lenders, are able to take deposits of up to Rs 1 lakh, issue debit and ATM cards, and facilitate online transactions - but are not allowed to lend money.

In a blog, Paytm founder and CEO Vijay Shekhar Sharma says that the Reserve Bank of India has now given his firm permission to formally launch its payments bank and that he will take a "full-time executive role" in the venture.

"At Paytm Payments Bank, our aim is to build a new business model in banking industry, focussed on bringing financial services to 100’s of millions of un-served or underserved Indians. With power of technology and innovation-at-scale, we aim to become a benchmark in world of banking," he writes.

According to local press reports, a launch could be set for February, putting Paytm hot on the heels of telecoms giant Bharti Airtel, which launched the first payments bank in November, going live with a pilot across the state of Rajasthan.

Last August, Paytm parent company One97 Communications raised $60 million from Taiwanese chip manufacturer MediaTek, part way to a $300 million target to fund the firm's move into the banking sector.

The wallet firm - 40% owned by Chinese Web giant Alibaba - has also given Wipro a one year contract to help it build a core banking system that meets accounting and regulatory requirements including compliance with anti-money laundering rules.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Airtel pilots India's first Payments Bank

Airtel pilots India's first Payments Bank

24 November 2016  |  6645 views  |  4 comments | 8 tweets | 19 linkedin
Paytm banking plans boosted by $60 million funding round

Paytm banking plans boosted by $60 million funding round

30 August 2016  |  4158 views  |  1 comments | 6 tweets | 1 linkedin
India's Paytm enlists Wipro for payments bank tech platform

India's Paytm enlists Wipro for payments bank tech platform

02 May 2016  |  6870 views  |  1 comments | 4 tweets | 6 linkedin
Alibaba takes 40% stake in India's Paytm

Alibaba takes 40% stake in India's Paytm

29 September 2015  |  7863 views  |  0 comments | 18 tweets | 11 linkedin
Telcos and tech firms get Indian payment bank licences

Telcos and tech firms get Indian payment bank licences

19 August 2015  |  13608 views  |  6 comments | 34 tweets | 19 linkedin
Bharti Airtel seeks Indian payments bank license

Bharti Airtel seeks Indian payments bank license

29 January 2015  |  6800 views  |  2 comments | 9 tweets | 4 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit wavestone-advisors.co.ukvisit www.www.fisglobal.comdownload the report now

Top topics

Most viewed Most shared
Live: EBAday 2017, day twoLive: EBAday 2017, day two
9434 views comments | 4 tweets | 5 linkedin
Worldpay pilots app-only mPOS for small retailersWorldpay pilots app-only mPOS for small re...
9094 views comments | 18 tweets | 27 linkedin
Live: EBAday 2017, day oneLive: EBAday 2017, day one
8593 views comments | 3 tweets | 4 linkedin
UK banks will need to change one million sort codes under ring-fencing rulesUK banks will need to change one million s...
8111 views comments | 8 tweets | 25 linkedin
What Banks and their customers can expect for the futureWhat Banks and their customers can expect...
7012 views comments | 7 tweets | 10 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job