Paytm launched the Paytm Payments Bank on Tuesday in the presence of the Finance Minister Arun Jaitley. Previously reported by People Matters, Paytm had hired 10,000 agents to help them complete the KYC process for the customers.
According to the RBI guidelines, a payment bank cannot offer loan or credit card to its customer. The deposit is limited to 1 lakh rupees per customer. Previously, it was reported that Paytm wanted to move into the payment bank space, and the government mandate for KYC requirements by the government being same for both a payment bank and a mobile wallet was a major factor.
The first payment bank to open in the country was launched by Airtel. Paytm is the second entity to launch its own payment bank.
"By virtue of reaching every nook and corner of the country, we will be able to bring the large unserved and under-served population to the mainstream economy. We are committed to offering the most transparent, safe and trusted banking to masses," Paytm Payments Bank CEO Renu Satti told news agency PTI.
Paytm plans to invest INR 5000 crore over into financial services with aim of achieving break even in the next two years. The company is based in Noida and backed by Jack Ma. According to Paytm CEO, Vijay Shekhar, the company has already invested INR 1700 crore this year.
According to the news report, PayTM also has plans to open up 31 physical branches across India in the coming years.