Leading digital wallet company Paytm is set to commence its Payments Bank operations from next week. After receiving the license from RBI for its payments bank, the company is finally slated to introduce its Payments bank entity on May 23 under the banner Paytm Payments Bank Limited.
Noida-based Paytm also reported that the company's Executive and Vice-President Renu Satti shall take over as the CEO of the banking entity.
In accordance with the guidelines of the apex body, company's wallet business shall now be moved to the newly incorporated banking entity under a payments bank licence agreement provided to Vijay Shekhar Sharma, Paytm's Founder and CEO.
Current customers of Paytm will see the business moving to the new entity and will also have the choice to discontinue their service with proper intimation by May 23 to Paytm.
As part of its financial inclusion drive, government gave nod to as many as 21 entities last year to function under the realm of differentiated banking that includes a total of 11 payments banks and other small finance banks or SFBs. Payments banks are allowed to accept maximum deposits of upto Rs. 1 lakh per account by small businesses and individuals.
Majority of the stake in the Payments Bank shall be held by Sharma and the rest by the company's parent company, One97 Communications.Concurrently, the company also reported spike in its digital gold sale. Know how to buy digital gold using Paytm here.