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Paytm, India’s leading digital wallet, will finally launch the Paytm Payment Bank on 23rd May. The launch which got delayed by more than 4 months has got its final nod from RBI. Paytm founder, Vijay Shekhar Sharma owns majority 51% share in the new entity as mandated by RBI.

RBI envisioned Payments Bank as a banking system more accessible to the underprivileged. As stayed on Paytm blog,the core mission is to serve the un-served and under-served communities of India.

Renu Satti, currently vice-president at Paytm will take over as the new CEO of the payments bank. Earlier Shinjini Kumar was to be made the CEO but now she has decided to step down.

What is a Payments bank?

A payments bank can be considered as a lightweight version of a regular bank. A total of 11 players have been granted license including Paytm, Airtel, India Post among others. It is regulated by the RBI.

What can a payment bank do?

It can be used for depositing cash. As of now a maximum of INR 1 lakh can be deposited. The customer can also get ATM / Debit card. The account holder will get interest on the deposited amount and one can also opt for a passbook for the Paytm Payments Bank account.

But a payments bank can’t lend money and also can’t issue credit cards.

What will happen to your Paytm wallet?

Money in your Paytm wallet will be transferred to Paytm payments bank account. The type of account will be same as that of Paytm wallet i.e KYC wallet as KYC account and minimum detail wallet as minimum detail account. In case you don’t want this to happen, you can mail to [email protected] before 23rd May with bank account details to get the money transferred. All other things will remain same.

Airtel, another payment bank license holder, launched its services in January this year.

Feel free to share your views on Paytm Payments Bank regarding the transition in the comment section below.

Image Source: Paytm.com

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