Ecommerce and payments platform Paytm has finally received permission from the Reserve Bank of India to formally launch the Paytm Payments Bank.
The development was confirmed by Paytm founder Vijay Shekhar Sharma in a blogpost. He said, “Today, Reserve Bank of India gave permission to formally launch Paytm Payments Bank. We can’t wait to bring it in front of you.” He further added, “This is our chance to build something that every Indian can be proud of. No other role or responsibility means as much to me as the privilege of building Paytm Payments Bank, and I intend to take a full-time executive role in the Bank.”
Earlier today, Paytm also announced that it has added support for payments using the Unified Payments Interface (UPI). This move will allow users to transfer money into their Paytm Wallets with ease.
Last week, Paytm had announced the launch of a revamped Android App. Prior to this in December 2016, Paytm’s parent company, One97 Communications issued a public notice that it would be transferring its wallet business, to the newly-incorporated Payment Bank entity.
The Reserve Bank of India had granted payments bank licenses to 11 companies, including Airtel and Paytm, way back in April 2016. Besides the two, Vodafone, Reliance Industries, Idea Cellular, Paytm, FINO Paytech, India Post and National Securities Depository Limited received payments banks licenses. Since then, One97 Communications Ltd and its founder Vijay Shekhar Sharma have collectively invested $32 Mn (INR 220 Cr) in Paytm Payments Bank Ltd as per a report by Mint.
While Paytm’s payment bank was expected to be launched in October last year, regulatory challenges reportedly delayed its launch. In November 2016, Airtel beat Paytm to become the first payments bank in the country to go live. It launched the pilot of its Payments Bank Limited (“Airtel Bank”) in Rajasthan.