Paytm is currently in the process of getting the final nod from the Reserve Bank of India (RBI) for its payments bank. Once it gets the required RBI approvals, the company will be merging its digital wallet business into its newly incorporated Paytm Payments Bank Limited (PPBL), the company said in a statement. Also Read - Best online gaming platforms to play multiple games: Paytm First Games, PlayerzPot and moreAlso Read - Internet down: Zomato, Paytm, Disney+ Hotstar, Amazon, Myntra, many other global services suffered massive outage
Last year, RBI had issued an in-principle payments bank licence to 11 entities including Paytm, the Department of Posts, Cholamandalam Distribution Services, Tech Mahindra, National Securities Depository Limited (NSDL), Fino PayTech, Sun Pharma s Dilip Shantilal Shanghvi, Airtel and Vodafone. Backed by Alibaba, Paytm is owned by One97 Communications Ltd, with founder and CEO Vijay Shekhar Sharma holding a 51 percent stake in the company. In an interview with The Economic Times, Sharma said that he personally has made an investment of Rs 112 crore for his majority stake in Paytm Payments Bank. Also Read - Zomato IPO: How to invest via bank, Zerodha, and Paytm Money
Airtel recently launched its payments bank in Rajasthan ahead of pan-india rollout. According to Airtel, payments bank will help bring millions of unbanked Indians into banking folds. Soon after starting payments bank, Airtel has managed to open more than 10,000 accounts in two days. To spice up the deal, Airtel payments bank is also offering one minute of talk-time on every rupee deposited. ALSO READ: What is a payments bank?
After the government demonetized old Rs 500 and Rs 1,000 currency notes, Paytm has been one of the main gainers with the push towards digital currency. Along with Paytm, other wallet companies too have registered a massive surge in user base as well as the number of transactions. If the data shared by ET is to be believed, Paytm has had more than five million transactions on a daily basis with a single day peak transaction worth Rs 120 crore. ALSO READ: Over 35 million online recharges done since demonetization: Paytm
In the wake of demonetization, last month, Paytm also launched a new service that enabled small merchants to accept debit and credit card payments on their smartphone without having a card swiping PoS terminal. However, soon after the launch, payment networks such as Visa and MasterCard raised concerns app-based PoS system that enables merchants accept payments without a physical card swipe machine. ALSO READ: Paytm rolls back its app-based PoS facility over security concerns, promises to relaunch soon
Paytm rolled back the facility and promised to re-launch the app after adding the required security features. A couple of days later, the company added those features and re-launched the app. ALSO READ: Paytm relaunches app-based PoS system after adding more features