Paytm Payments Bank to launch on May 23

Paytm is now all set to commence its payments bank operations from May 23 having received the final approval from the Reserve Bank of India. PTI

Meanwhile, Paytm Payments Bank is also becoming operational from next week and will be headed by CEO Renu Satti.

A Paytm spokesperson said: "We recently received approval from RBI for Renu Satti to be the CEO". This investment comes on the heels of the massive push from chipmaker MediaTek, who joined Paytm's growing list of investors earlier this year. Reportedly, the Paytm Payments Bank has already received Rs 218 crore capital infusion.

Digital payments in India got a big lift a year ago after India's shock move to remove higher-value currency from circulation boosted the attractiveness of non-cash alternatives.Analysts said SoftBank was seeking to emulate in India its strategy in China, where Alibaba runs its own digital payments provider Alipay. The $1.6 billion commitment is said to be the single largest funding round from a single investor in India.

In January 2014, it launched the Paytm Wallet.

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 founder and CEO Vijay Shekhar Sharma said: "This investment by Softbank and support of the incredible entrepreneur Masayoshi Son is a great endorsement of our team's execution and vision".

The payments bank will launch its services first in Uttar Pradesh (UP) and then expand to northeast. That includes 11 for payments banks. These banks can accept a restricted deposit, which is now limited to INR 1 lakh per customer and may be increased further.

Now, Paytm has today released a public notice that states that Paytm Payments Bank will be starting operations officially on May 23, which is only six days from now.

All active wallet accounts will now be transferred to the new entity. Truecaller, is going introducing a new UPI-based mobile payment service "Truecaller Pay" through a tie-in with ICICI Bank. At present, Paytm has nearly 218 million wallet accounts.

Even though PayTM is funded by Alibaba Group, they will not have any share holding in the Payments Bankas per the RBI regulations.

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