PayTM, India’s largest wallet service company has finally got the permission from Reserve Bank of India(RBI) to launch the Paytm Payments Bank.
“At Paytm Payments Bank, our aim is to build a new business model in e-banking Sector, focussed on bringing financial services to 100’s of millions of unserved or underserved Indians,” Vijay Shekhar Sharma, the founder and CEO of Paytm, wrote in a blog post.
Paytm, which is owned by One97 Communications, plans to launch the payments bank operations in February and its first branch will come up in Noida, Uttar Pradesh, Press Trust of India reported.
“With power of technology and innovation-at-scale, we aim to become a benchmark in world of banking,” he wrote.
Here are five things that we know about the Payments Bank:
- The CEO aims to build a new business model in India’s banking industry, which is focused on bringing financial services to millions of under-served Indians.
- Once operational, the Paytm Payments Bank will be able to issue debit cards to customers. It will be able to allow account holders to transact through electronic fund transfer and Unified Payment Interface.
- The payments bank is not permitted to issue credit cards or issue loans to users.
- The payments bank can accept deposits from individuals or small businesses of up to Rs 1 lakh (Rs 1,00,000) per account.
- Last month, One97 Communications had rebuilt its business ahead of the launch of the Payments Bank.
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