Fintech company Paytm will be launching its brand new service Payments Bank on May 23, 2017.
"We are in the process of launching Paytm Payments Bank on May 23. We recently received approval from the Reserve Bank of India (RBI) for Renu Satti to be the CEO," Paytm spokesperson told IANS in New Delhi.
At a time when India is stepping forward for Digital transaction, Paytm bank services will enable users to go ahead with more of digital money.
Payments banks is a new model of banks conceptualised by the Reserve Bank of India (RBI). These banks can accept a restricted deposit, which is currently limited to INR 1 lakh per customer and may be increased further. Payments banks can issue services like ATM cards, debit cards, net-banking and mobile-banking; but they are barred from offering loans and credit cards.
Paytm managed license for Payments Bank from Reserve Bank of India in 2015. But, for several reasons, the company had been delaying the launch.
The payments bank would be a separate entity in which the founder Vijay Shekhar Sharma will hold 51%, One97 Communications will hold 39% and 10% will be held by a subsidiary of One97 and Sharma.
By 2020, the company targets to reach a customer base of 500 million.
Post-demonetisation, Paytm saw a surge in its customers owing to the digitisation push by the central government.
(with IANS inputs)