Paytm to commence operations of its payments bank on May 23

Jay Anderson
May 18, 2017

Vijay Shekhar Sharma-led Paytm has been okayed by the RBI to start its payments bank; the Noida-based firm is expected to begin its operations under Renu Satti, from 23rd of May, 2017.

Finally in August 2015, the Reserve Bank of India had granted payments bank licenses to these companies including Airtel, Paytm, Vodafone, Reliance Industries, Idea Cellular, FINO Paytech, India Post and National Securities Depository Limited received payments banks licenses. It involves onboarding half a billion users on its mobile-first digital bank and expedite the growth of its zero cost QR Code-based payment solution to simplify buying experiences for the masses. Kumar, who was a director at consultancy firm PwC, was hired by Paytm past year to lead the payment bank's operation. Renu Satti, who is now a vice-president at Paytm, will head the payments bank operations. "We recently received approval from the RBI for Renu Satti to be the CEO".

Japanese Internet conglomerate and investor SoftBank Group Corp has now set its sights on the payments space in India, and is in talks to invest. Satti has been heading Paytm's movie ticketing business.

SoftBank will also get a board seat in Paytm after the investment, which was made into Paytm parent One97 Communications, according to a statement from the Indian digital payments provider. The first step, the launch of its services and a 55-member strong team, has already been taken with the debut of Paytm wallet in Canada.

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She added that sending a fresh list of probable CEOs for the payments bank for approval, as well as some other conversations with RBI, caused a delay in final approval. In February, it was reported that Paytm Payments Bank had received fresh capital of Rs 218 crore, with licence holder Sharma infusing as much as Rs 111 crore, while the rest was put in by One97 Communications and One97 India Communications.

If the wallet has been inactive for the last six months, the transfer to the payments bank will happen only when the consumer gives specific consent.

With the objective of deepening financial inclusion, RBI kicked off an era of differentiated banking by allowing SFBs (small finance banks) and PBs (payments banks) to start services.

Other reports by BadHub

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