26 July 2017
visit www.finastra.com

Paytm to open new Payments Bank next week

18 May 2017  |  6565 views  |  0 Green light

Indian mobile wallet giant Paytm is to open its new Payments Bank on 23 March, joining telco Bharti Airtel as one of the first non-banks to take advantage of the Government's relaxing of restrictions on bank licensing in an effort to boost financial exlusion.

Taking on traditional lenders, the new players 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.

Paytm parent company One97 Communications received provisional approval from the Reserve Bank of India to launch a Payments Bank back in January.

With the final approval in the bag, the company is set to commence operations next week, appointing Renu Satti, vice-president of business at Paytm as chief executive officer.

All active wallet accounts will now be transferred to the new entity. Users who do not wish to have their business moved will need to submit a written request by 23 May and transfer their account balance to their own bank.

The new bank has set a goal of opening 200 million current and savings accounts over the next 12 months, rising to half a billion by 2020. It will target underserved segments of the country with its mobile app, aiming squarely at rural areas where bank branches and ATMs are in short number.

The news comes as Paytm confirmed a $1.4 billion investment from SoftBank Group Corp. to help it fulfill its ambitions as it enters the banking market.

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

Alibaba leads $200 million investment in Paytm e-commerce unit

Alibaba leads $200 million investment in Paytm e-commerce unit

03 March 2017  |  10124 views  |  0 comments | 10 tweets | 10 linkedin
Bharti Airtel takes stake in fintech lending startup

Bharti Airtel takes stake in fintech lending startup

23 February 2017  |  6649 views  |  0 comments | 5 tweets | 3 linkedin
Paytm gets RBI nod for payments bank launch

Paytm gets RBI nod for payments bank launch

03 January 2017  |  6380 views  |  0 comments | 9 tweets | 6 linkedin
Airtel pilots India's first Payments Bank

Airtel pilots India's first Payments Bank

24 November 2016  |  6787 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  |  4226 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  |  6954 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  |  7962 views  |  0 comments | 18 tweets | 11 linkedin
Bharti Airtel seeks Indian payments bank license

Bharti Airtel seeks Indian payments bank license

29 January 2015  |  6852 views  |  2 comments | 9 tweets | 4 linkedin

Related blogs

Create a blog about this story (membership required)
visit www.finastra.comvisit www.worldpaymentsreport.comvisit www.www.fisglobal.com

Top retail banking topics

Most viewed Most shared
UK judge blocks £14bn class action suit against MastercardUK judge blocks £14bn class action su...
10160 views comments | 7 tweets | 6 linkedin
PayPal strikes deals with Chase and CitiPayPal strikes deals with Chase and Citi
9750 views comments | 10 tweets | 6 linkedin
Mastercard and Scotiabank join Enterprise Ethereum AllianceMastercard and Scotiabank join Enterprise...
9560 views comments | 25 tweets | 16 linkedin
Wells Fargo Control Tower to map customer's digital footprintsWells Fargo Control Tower to map customer'...
8024 views comments | 7 tweets | 5 linkedin
UK Government to ban "rip off" card surchargesUK Government to ban "rip off" c...
7962 views comments | 16 tweets | 30 linkedin