Paytm Payments Bank will commence its operations from May 23, as it has secured the final approval from the Reserve Bank of India, its parent company One97 Communications said on Wednesday.
The company has appointed Renu Satti as the CEO of Paytm Payments Bank. Satti currently is the vice-president of business at Paytm.
“As per the directions of the RBI, the company will be transferring its wallet business to the newly incorporated payments bank entity, Paytm Payments Bank, under a payment bank licence awarded to a resident Indian, Vijay Shekhar Sharma,” the company said in a notice.
Under the payments bank licence, Paytm wallet users will be transferred to Paytm Payments Bank unless the user notifies otherwise. The amount can be transferred to his/her bank account after the user provides the name of the account holder, account number and IFSC code.
Last year, Paytm had separated its wallet business from the horizontal e-commerce portal. The two businesses are known as Paytm Payments Bank and Paytm E-Commerce Pvt. Ltd.
Paytm Payments Bank was registered in August 2016 as a subsidiary of One97 Communications with Sharma holding a 51 per cent stake in the company. For the first five years, the stake of the promoter in payments banks should be at least 40 per cent, RBI guidelines say.
The launch of the payments bank has been delayed though the firm bagged the in-principle nod in August 2015. Other companies which bagged licences include Reliance Industries, Aditya Birla Nuvo, Fino Pay Tech Ltd, and Vodafone m-Pesa.