Paytm, the recognized digital wallet app in India finally received the approval they are looking after. Yes, Reserve Bank of India (RBI), today approved the company’s plan to launch the ‘Paytm Payments Bank’ service.
The news was informed by the company’s CEO, Vijay Shekhar Sharma on their blog stating that “At Paytm Payments Bank, our aim is to build a new business model in banking, focused on bringing financial services to 100’s of millions of un-served or underserved Indians. With power of technology and innovation-at-scale, we aim to become a benchmark in world of banking,”.
Also, he started that the Paytm Payments Bank services will be live in coming weeks, to be precise, in the next 30 to 60 days. He also quoted that he will be taking up the full-time executive role for the newly formed entity.
If the rumors are believed to be true, Vijay reportedly sold out one percent of the Paytm shares for Rs. 325 crores and the same money might be used to set up the Paytm Payments Bank. Also, the initial investment in the new service will go as high as Rs. 400 crores.
Some days ago, Paytm founder said that they would be looking to achieve 200 million accounts by the end of this year and aiming to touch half-billion accounts by the start of 2020. As of now, Paytm has nearly 150 million users registered on their service.
The Paytm digital wallet will now become a part of the Paytm Payments bank, and this new service will work on the UPI with which every user can be able to transfer money to others bank account with just one tap.
Having said that, the new service will run regular banking services such as offering loans, insurance, and wealth management services to generate revenue. Paytm also has a competitor in this segment as well in the form Bharti Airtel who recently started their ‘Airtel Payments Bank’ service and is aggressively expanding the service to every corner of India.