Paytm is now finally planning to launch the payments bank in India. Paytm Payments Bank Ltd, owned by One97 Communication founder Vijay Shekhar Sharma has received the final approval from the Reserve Bank of India.
Paytm was founded by One97 Communications in 2010 as a prepaid mobile recharge website. Paytm means “Pay Through Mobile”. “ Reserve Bank of India has given permission to officially launch Paytm Payments Bank. We can’t wait to bring it in front of you,” said Sharma in a blog.
“At Paytm Payments Bank, our focus is to develop a new business model in banking sector, also to bring financial services to hundreds of millions of people in India. With power of technology and innovation, we want to become a brand in the world of banking,” Sharma wrote in his blog. Also Sharma confirm to take a full-time executive role in the bank.
Paytm’s digital wallet will now be part of Paytm Payments Bank Ltd in keeping with the directions of RBI. Paytm Payments Bank is held 49% by One97 Communications Pvt. Ltd and 51% by Sharma.
Paytm Payments Bank has set up a target to open 200 million accounts, all current and savings accounts, and mobile wallets, within 12 months of its launch. It expect to have half a billion accounts by 2020. Paytm already has close to 150 million electronic wallets till date.
The bank will sell products such as loans, wealth management and insurance to drive revenues. Payments banks are not allowed to lend themselves, but many are banking on cross-selling banking products through partnerships.