Paytm Payments Bank got final approval from RBI. This is a big news for the company. They are formally going to launch its payments bank and start its operations in the next month.
Vijay Shekhar Sharma, the founder of Paytm and One 97, said “Today, Reserve Bank of India gave permission to launch Paytm Payments Bank formally. We can’t wait to bring it in front of you.”
He also said exactly three years ago in 2014 paytm has launched as the mobile wallet, now it became the category leader and changed the way India pays.
To everywhere this paytm is spreaded, from villages to cities, from corner vegetable stalls to milk booths, small shops to large retailers, everyone accepted the new way to pay by Paytm.
He also said paytm payments bank aim is to build a new business model in the banking industry which is focused on bringing financial services to millions of Indians.
Mostly in February they will start operations. In 2015, RBI had given ‘in-principle’ approval to Vijay Shekhar Sharma, to set up a Payments Bank along with 10 others.
At present Airtel is the only company to start its payments bank. Aditya Birla Idea Payments bank will start their operations in the first half of 2017.
Paytm digital wallet is also one of the parts of paytm payments bank. Mr. Sharma will hold 51% and One 97 communication will hold 49%
This payment bank sets a target to reach 200 million accounts within one year from the launch. By 2020 their aim is to touch the half a billion accounts. At present, paytm have 150 electronic accounts.
In this bank, they will sell products, loans, wealth management and insurance to drive revenues. These payment banks do not lend themselves directly, and they can do banking on cross-selling bank products through partnerships.