The country's leading mobile wallet and e-commerce company Paytm has received final approval of the Reserve Bank to formally launch its payments bank. Paytm Payment Bank expects to start operations next month. Payments banks can accept deposits from individuals and small businesses up to Rs 1 lakh per account.

"Today, Reserve Bank of India gave permission to formally launch Paytm Payments Bank. We can't wait to bring it in front of you," Vijay Shekhar Sharma, founder of One97 Communications, said in a blogpost. "No other role or responsibility means as much to me as the privilege of building Paytm Payments Bank, and I intend to take a full-time executive role in the Bank," Sharma said further. He added that at Paytm Payments Bank, the aim is to build a new business model in the banking industry, focussed on bringing financial services to hundreds of millions of unserved or underserved Indians.

Payment banks can hold up to Rs 100,000 per individual customer. They can not issue loans and credit cards to customers. Paytm Payment Bank can issue debit cards instead. It will be able to allow account holders to transact through NEFTs RTGS and UPI. What Are Payments Banks In India?

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