After much wait Paytm was able to bag the approval from Reserve Bank of India to launch its payments Bank services. The launch is set on 23rd May and the company is all set to make it a success. The news came out from Paytm’s holding company One97 Communications Pvt. Ltd on Wednesday.
The Company also said that Renu Satti, the current Vice President of business as PAytm will take over the charge of Chief Executive Officer (CEO) of Paytm Payments Bank. The company hired Shinjini Kumar to take over this charge in February last year but it seems that the company has asked him to leave, says some internal sources. Kumar was appointed a senior executive at the Reserve bank of India before joining Paytm.
Paytm confirmed that all the active wallet accounts on the application will securely transfer to the payments bank. “As per the directions of RBI, the company will be transferring its wallet business to the newly incorporated payments bank entity, Paytm Payments Bank Ltd, under a payment bank license awarded to a resident Indian, Vijay Shekhar Sharma,” it said in a statement.
Paytm, for the comfort of the users, will offer a chance to the users to opt-out of the move, if in case they want, through a written request forwarded to the company by the user. However, for some dormant accounts or accounts with zero balances, the user needs to notify the company to make the change. All such communication must be made before May 23.
Paytm Payments Bank has set a huge target for this year. They are planning to secure 200 million accounts, across current and savings accounts, and mobile wallets, within 12 months. Currently, Paytm has around 218 million wallet accounts.
As per the Mint reports, Sharma along with his firm One97 Communications has invested a sum of 200 crores in Paytm Bank till date.