Paytm Payment Bank to be in operation from January 15 -Governance Now

Paytm Payment Bank to be in operation from January 15

Paytm wallet users will be given the option of opening a bank account with Paytm. They will get facilities like debit card and cheque book

GN Bureau | January 11, 2017

#Paytm #payment banks #RBI #digital wallets #India Post #cashless

Paytm Payment Bank to be in operation from January 15

If you have a Paytm account and there is money in your wallet, then soon you can get interest on your money. The statement came from the Paytm’s blog post, in which the company announced that it will launch its payment bank on January 15.

Paytm wallet users will be given the option of opening a bank account with Paytm payment bank. On doing so, the user will get all the benefits of payment banks like debit card and cheque book.

Unlike other commercial banks, payment banks are not allowed to give credit or loans. These banks are, however, allowed to make arrangements with commercial and small finance banks, with prior permission from Reserve Bank of India (RBI). Those having a bank account in a payment bank can keep deposits up to Rs 1 lakh. Account holders in these banks get cheque books, debit card and interest on their deposits.

There will be no difference in usage of the Paytm wallet post January 15. All services will continue to be same, the company claims.

The Paytm payment bank is 51 percent owned by Vijay Shekhar Sharma, India-based entrepreneur and 49 percent by One97Communication Limited, a Delhi-based internet company.

The intention behind payment bank is to financially include those with small saving accounts, low-income households, small businesses and unorganised sector.

Another payment bank licence holder is India Post. The government-run courier service will reportedly open its first payment bank (India Post Payments Bank) in Jharkhand in January. Last year, prime minister Narendra Modi had announced that all India Post offices should be converted into payment banks by January 2017.

RBI gave in-principal licences to 11 entities to launch payment banks, which included department of posts, Paytm, Airtel and Reliance Industries. Out of 11, three companies - Chalomandalam Distribution Services, Sun Pharmaceutical Industries Limited and Tech Mahindra – surrendered their licence.

As per RBI norms, “The operations of the [payment] bank should be fully networked and technology driven from the beginning, conforming to generally accepted standards and norms.”

Comments

Other News

Maharashtra Aggregator Cabs Policy flawed: IFAT

On May 21, 2025, Maharashtra issued a government resolution (GR) on its Aggregator Cabs Policy 2025 to formalize the largely unregulated sector. The guidelines outline the framework on ride cancellations, surge pricing, driver earnings, among others for app based services like Ola, Uber. Now, the Indian Fe

The Northeast the most diverse region of our diverse nation: PM

Prime minister Narendra Modi inaugurated the Rising North East Investors Summit 2025 at Bharat Mandapam, New Delhi on Friday. Welcoming the dignitaries to the event, the PM expressed pride, warmth, and immense confidence in the future of the North East region. He recalled the recent Ashtalakshmi Mahot

MMRDA proposes formation of Fare Fixation Committee for Metro Lines 2A & 7

Mumbai Metropolitan Region Development Authority (MMRDA) has proposed the constitution of a Fare Fixation Committee (FFC) for Mumbai Metro Lines 2A and 7, currently operated by Maha Mumbai Metro Operation Corporation Limited (MMMOCL). ‘Fare Fixation’ is mandated under Section 33

‘Op Sindoor not an act of revenge, but a new form of justice’

Emphasizing that Operation Sindoor was not an act of revenge, but a new form of justice, prime minister Narendra Modi on Thursday remarked that it was not just an expression of outrage but a display of India`s unwavering strength and determination. He asserted that the nation has adopted a bold approach, s

An ode to the enduring legacy of India’s temple culture

Dynasties of Devotion: The Secrets of 7 Iconic Hindu Temples By Deepa Mandlik (Translated from the Marathi by Aboli Mandlik) HarperCollins, 232 pages, Rs 399

How to improve India’s crèche system

India stands at a pivotal moment, caught between the promise of a demographic dividend and the crisis of gender inequality. While falling fertility rates, rising female education, and increasing labour force participation signal progress, policymakers continue to neglect one of the most invisible yet vital