The company established and developed by One97 Communications in 2010 is soon going to be operational as Paytm Payments Bank Limited. On May 23 Paytm, a website founded as prepaid mobile recharge website will start functioning as a payments bank of India.
A payment bank operates like a normal bank and performs almost all the transactions, except for advancing loans or issuing credits. This type of bank is set up for easy availability of financial services to the lower income groups.
In September 2013, a committee was setup for the study of “Comprehensive financial services for small businesses and low income households”. The main objective of this committee was to recommend effective measures for financial inclusion. The report for the same was submitted to the Reserve Bank of India in January 2014. One of the primary and most important recommendations included setting up of specialized banks or payments banks, designed especially to serve the lower income groups and small businesses, so that every Indian citizen could have a global account by January 2016. Eleven entities were granted a license for the launch of payments bank out of which three surrendered their licenses. Paytm is going to be second payments bank, after Airtel, to be launched in India.
Paytm got its license under the name of an Indian resident called Vijay Shekhar Sharma who is also the founder and CEO of the company. The operation of Paytm wallet will be the same in case the customer does not wants to receive the services and benefits of the payments bank.
All those who are looking forward to the services of Paytm Payments Bank Limited and discontinue the benefits of the Paytm wallet can email their choices at [email protected] or login to paytm.com/care. This is to ensure that the balance of the customer is redeemed and carried forward to his/her very own bank account through one time transfer. All you need to do is fill the Account Holders name, account number and the IFSC code of the bank where you want to redeem the balance within 15 days of notifying your choice. In case these details are not provided, your wallet money will be safely kept in a specially designed account with Paytm Payments Bank. The amount thus deposited, can be acquired on receipt of the bank details for the transfer of wallet money to your own bank account. A special feature includes the transfer of your wallet account to Paytm payments bank account if it has zero balance and has been inactive for last six months, only if you provide specific consent. All your queries, grievances, specific consents will be entertained at the [email protected].
Prior to this, Paytm acquired Freecharge, a digital payments platform. It was also highlighted in March 2015 when Ratan Tata made a personal investment in the company. It came into news for its heavy investment of $5million in auto rickshaw delivery firm Jugnoo. Not to forget its profound investment of more than INR200 crores to gain the title sponsorship of the Indian Cricket Team. Also Paytm played an important praiseworthy role during demonetisation. And now get ready to enjoy the services of India’s second Payments bank!