Paytm Payments Bank has committed to invest $466.5 Mn (INR 3000 Cr) in next three years to create a network of 10K offline consumer banking touchpoints.
The aim is to expand its offline distribution network by allowing trusted local partners to act as potential cash-in and cash-out points and other related banking activities. The announcement came in just a week after launching the banking process formally and announcing an investment of $500 Mn in KYC (Know Your Customer) operations.
The payments bank is trying to rope in retail shops and mom-and-pop stores to act like its local banking touchpoints. These shops will function as an ATM and a consumer can both deposit and withdraw the money from his savings account.
Also, they will take in requests for the opening of new savings account in the Paytm Payments bank and link their Aadhaar details to their Paytm accounts.
“These specially branded outlets will play a key role in bringing banking access to smaller cities and towns by ensuring customers find it easy to locate points near them,” said Paytm Payments Bank in a statement.
Recently, 3000 such outlets known as ‘Paytm ka ATM’ were launched in Delhi/ NCR, Lucknow, Allahabad, Aligarh, Varanasi and Kanpur. Also,the firm is introducing a dedicated ‘Bank’ section on the Paytm app where one can access an entire range of banking services including payments, digital debit card, passbook, help, and support among others.