India’s leading digital wallet Paytm has been far more successful than any of its competitors, now their new strategy is to establish themselves as a payments bank entity. In order to launch so, the company has now received the final license from the Reserve Bank of India.
The Noida-based payments player is to kick-start its much-awaited, fully operational payments bank starting next week and has declared its long-time executive and vice president Renu Satti as the CEO of the payments bank.
Satti has been working with the Paytm owner “One 97 Communications” for over a decade and was part of the project when the company jabbed their hands in movie ticketing business.
“We are in process of launching Paytm Payments Bank on 23rd May. We recently received approval from RBI for Renu Satti to be the CEO,” said a Paytm spokesperson.
It’s unclear if Paytm’s previously hired CEO Shinjini Kumar, a former central banker and senior executive at consultancy PwC, is still in or left the company.
Paytm Payments Bank Limited is the brainchild of the Founder and CEO Vijay Shekhar Sharma. Under his captaincy, the popular mobile wallet will begin its banking operations from May 23rd, 2017.
As per the Central bank’s guidelines, the newly incorporated payments bank entity has been offered a payments bank licence, the company has merged its wallet business to fully fledged operational banking.
The customers can use the payment wallet and will avail the Paytm Payments Bank option of discontinuing their wallet services with due communication sent to the company by May 23rd. According to The RBI allows payments banks to accept deposits from individuals and small businesses of up to Rs 1 lakh per account.
Sharma holds the majority share in Paytm Payments Bank, and the rest is with One97 Communications. It is also rumoured to raise $1.4-1.9 billion from Japanese telecom and internet major Softbank Corp at a valuation of between $8-9 billion.
Feature Image Credit : The Economic Times
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