Paytm to Begin Payment Bank Operation by August

Paytm to Begin Payment Bank Operation by August

Mobile payment service Paytm says its payment bank will launch by August, and that the Noida-based company is currently in the middle of submitting its final proposal to the RBI. India’s banking regulator had granted an in-principle ‘payment bank license’ to 11 entities including Reliance Industries, Vodafone, Airtel, Paytm, among others in August 2015.

Payment banks are allowed to open current, savings accounts for users with Rs 1 lakh as limit, but can’t lend or issue credit cards to customers. Paytm’s payment bank was initially supposed to launch in April 2016, but that has been delayed.

Paytm CEO Vijay Shekhar Sharma Said :-

“We are in the final process of completing the formalities and handing over the final applications to the RBI. We expect the payment bank to start sometime in August and are looking at network banking, but in a different way. For instance, we will have branches for our Paytm Bank, but not everywhere. We might have branches in some cities which will function as headquarters, but there will be no bank-teller counters here,”

According to Sharma, Paytm’s bank will be different from every other players by being entirely dependent on the mobile app. “Financial inclusion is our agenda and we are targeting 500 million users overall. Our banking will be entirely depended on the mobile app. We are also have Paytm ka ATM, which won’t be like the current ones,” said Sharma. Paytm says that unlike traditional ATMs where users go to withdraw money, they envisage a person, a shop, even a petrol pump outlet as a place where users can go and access their account.

QR Debit Card :-

For users who don’t have smartphones and can’t access the app, Sharma says the company plans to launch debit cards with QR codes, which can be scanned at various points. Paytm says that it has tie-ups with 85,000 merchants where consumers can pay just via their Paytm wallet, and wants to reach 4 million merchants by the end of the next fiscal. On the reasons for the delay, Sharma said the company was trying to ensure that its launch was perfect. “We want to use core banking software such as Infosys’ Finacle for our payment bank network,” he added.

According to reports, Paytm has partnered Wipro to create the requisite technology infrastructure for the payments bank business.

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