Paytm Payments Bank formally approved by RBI

By Arnab Mukherjee | Published on 03 Jan 2017
HIGHLIGHTS

Approval granted around a month after company issued public notice for move to payment bank

Paytm Payments Bank formally approved by RBI

#IBMCodePatterns, a developer’s best friend.

#IBMCodePatterns provide complete solutions to problems that developers face every day. They leverage multiple technologies, products, or services to solve issues across multiple industries.

Click here to know more

Advertisements

PayTM has received formal approval for its Payments Bank from RBI today. Earlier, RBI had provided an ‘in principle license’ to the founder and CEO Vijay Shekhar Sharma and as of today, the final license has been granted. According to Paytm, they will be commencing banking operations soon.

According to directions received from RBI, PayTM will be moving its wallet platform into the new Payments bank and any users were free to move their PayTM wallet money back into their bank accounts till 31st January 2017. Post the launch of the Payments bank, transfers between the wallet and the Payments bank account will be free of charge.

Customers who choose to opt out of the move can get in touch with the PayTM customer care. But if they want to stay with the move, full KYC wallets will be transferred as full KYC wallets into the bank and minimum KYC wallets will be transferred as minimum KYC wallets.

This banking license comes at a time when other players like Reliance Industries, Vodafone, Airtel and a few more are also in the process of getting banking license approvals. There have been multiple reports surrounding the Payment bank from Paytm, with some even stating that the bank will be offering a 14.5% interest rate which is definitely much higher than any other bank is offering at the moment. If this does turn out to be true, this might draw more users to the bank than any other reason at the moment.

According to Mr. Vijay Shekhar Sharma, “At Paytm Payments Bank, our aim is to build a new business model in banking industry, focussed on bringing financial services to 100’s of millions of unserved or underserved Indians. With power of technology and innovation-at-scale, we aim to become a benchmark in world of banking.”

Further details about the bank and its offerings are yet to be known. Stay tuned to this space for more information and check this blog post for the actual announcement.

logo
Arnab Mukherjee

Digit caters to the largest community of tech buyers, users and enthusiasts in India. The all new Digit in continues the legacy of Thinkdigit.com as one of the largest portals in India committed to technology users and buyers. Digit is also one of the most trusted names when it comes to technology reviews and buying advice and is home to the Digit Test Lab, India's most proficient center for testing and reviewing technology products.

We are about leadership-the 9.9 kind! Building a leading media company out of India.And,grooming new leaders for this promising industry.

DMCA.com Protection Status