Digital wallet Paytm today announced that it will be launching its Payments Bank operations from May 23 and appointed Renu Satti as the latter's CEO.
Paytm's parent company One97 Communications has raised $1.4 Bn from SoftBank Group, the Japanese Internet and telecom major.
Customers using the payment wallet will see it move to the Paytm Payments Bank Limited in the same capacity and have the option of discontinuing their wallet services with due communication sent to the company by May 23rd.
Paytm plans to invest about $1.6 billion (around Rs10,000 crore) over the next 3-5 years towards enabling half-a-billion Indians to join the mainstream economy, the company said in a statement on Thursday.
Earlier, Sharma had stated that Paytm would be infusing Rs 400 crore into the payments bank.
Renu Satti, now vice-president, business, Paytm, will take over as the chief executive officer of Paytm Payments Bank, the company said.
Paytm Founder and CEO Vijay Shekhar Sharma said, "We are at an inflection point in our journey with Paytm".
Added Eric Jing, CEO - Ant Financial, "India has presented us with the world's largest opportunity in terms of financial services and we are confident its market will grow exponentially over the next decade". Paytm's consequent emphasis on digital payments and a strong branding and advertising campaign to build the brand have worked well.
For those who have not done any transactions on their Paytm Wallet in the past six months, the transfer will happen only if the customer consents to the same. Alibaba (and its subsidiary) now holds over 40 percent stake in One97 Communications and have been adding to it by helping individual investors cash out from the company. The company recently spun off its e-commerce business PaytmMall under a separate entity Paytm E-commerce Pvt. Another payments bank was launched by India Post.
This news comes just a day after ecommerce and payments platform Paytm finally geared up to roll out its payments bank on May 23, 2017.
With the objective of deepening financial inclusion, RBI kicked off an era of differentiated banking by allowing SFBs (small finance banks) and PBs (payments banks) to start services.
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