India’s leading digital wallet player Paytm has received the final licence from the Reserve Bank of India for its payments bank entity. With this, the road is now clear for the Noida-based payments player to kickstart its much-awaited payments bank operations next week.
Paytm Payments Bank Limited will begin its banking operations from May 23, 2017 and will expand to 31 branches and 3,000 customer service points in the first year, the company said. 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.
Sharma and One97 have together already invested about Rs 220 crore in the payments bank.
The bank will also offer a cash back of Rs 250 to customers depositing Rs 25,000 in the payment bank.
Paytm Payments Bank will get Rs 400 crore in investment in the first two years of operation. One97 Communications founder Vijay Shekhar Sharma personally owns a 51% stake in the payment bank, as per regulatory requirements, with the remaining stake owned by One97 Communications.
Paytm Payments Bank, which will be headed by Renu Satti as CEO, will have a zero balance requirement and will offer online transactions such as IMPS, NEFT, and RTGS free of charge.
ayments banks can accept Rs 1 lakh per account. The bank will also roll out its banking app in the beta phase, initially for its employees, the company said. The payments bank will also offer RuPay debit cards to consumers, which can be used for five free ATM cash withdrawals in non-metro cities per month after which they will be charged Rs 20 per withdrawal.
It may be recalled payTM at the time of demonetisation, the day after announcement invited controversy by using Prime Minister narendra modi pictures full page advertisement across all dailies
Talking about his remarkable story from rags to riches, Vijay Shekhar Sharma said Indian financial system penalises the honest and rewards the dishonest to take loan and leave the country without paying. He added that initially he paid 24 per cent rate of interest on the loan he had taken to fund his startup.
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