India’s leading digital wallet player Paytm has received the final licence from the Reserve Bank of India for its payments bank entity
Digital payment and commerce company Paytm has received the final nod from the Reserve Bank of India and is set to launch Paytm Payments Bank on May 23, according to a statement from One97 Communications Pvt. Ltd.
“Renu Satti, vice-president, business, at Paytm, will take over as the chief executive officer of Paytm Payments Bank. We are in process of launching Paytm Payments Bank on 23rd May”, said a Paytm spokesperson.
Paytm did not comment on Shinjini’s role in the company,a director at consultancy firm PwC Paytm hired in February to lead the payments bank operation.
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 awarded to Founder and CEO Vijay Shekhar Sharma.
One97 Communications founder and CEO Vijay Shekhar Sharma was among the 11 applicants to receive RBI’s in-principle nod for a payments bank licence in November 2015. It is the third company to launch payments bank after Airtel and IndiaPost.
In January, Paytm had said it received the final approvals from the RBI and was planning to start payments bank in one or two months, but the launch was delayed.
In the same month, Bharti Airtel Ltd commenced operations for Airtel Payments Banks, a joint venture between Bharti Airtel Ltd and Kotak Mahindra Bank Ltd.
Vijay Shekhar Sharma, said in a statement..
“As per the directions of RBI, the company will be transferring its wallet business to the newly incorporated payments bank entity, Paytm Payments Bank Ltd, under a payment bank licence awarded to a resident India.”
Paytm said that all active wallet accounts on the payments app will be transferred to the payments bank.Customers, who do not wish to transfer their Paytm accounts, can opt out by communicating to the company before May 23 failing which the account will be automatically be transferred to the payment bank.
Paytm Payments Bank has set itself a target of 200 million accounts, across current and savings accounts, and mobile wallets, within 12 months of the launch. It aims to touch half a billion accounts by 2020.