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
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

A blueprint of India’s economic future: From a former RBI governor

From Dependence to Self-Reliance: Mapping India’s Rise as a Global Superpower By Bimal Jalan Rupa Publications, 184 pages, Rs 695 Bimal Jalan, a former governor of the Reserve Bank of India (RBI), has been one of our finest commentators on econom

Carbon neutrality: distant dream or a possible future?

While many countries have been chasing to reach the carbon neutral status, only a few seem to be living up to their pledges as of now. The famous ’Paris Agreement’ of 2015 was glorified and celebrated that finally 196 countries have united with an intent to mitigate and reduce the greenhouse ga

Agnipath: benefits and challenges on the path ahead

The government this week announced the Tour of Duty or `Agnipath` scheme for the recruitment of soldiers in the armed forces. Under this scheme new soldiers will be recruited only for four years. This radical and far-reaching scheme has attracted mixed reactions from various quarters. While some officials

Connecting credit card with UPI: What it means for you

UPI has become an integral part of our daily lives now. We use it to buy groceries, we use it to send money to friends and family, we use it to purchase tickets, book shows, pay the cab driver, and a whole host of other things due to the ease and availability of such a platform at our fingertips. The best

Gandhi’s letters to his youngest son also hold his aspirations for nation

Scorching Love: Letters from Mohandas Karamchand Gandhi to his son, Devadas By Gopalkrishna Gandhi and Tridip Suhrud Oxford University Press, 528 page, Rs 1495 Gandhi’s era happened to be an era when letter-writing was a primary mode of communica

‘In Mumbai, society, police forces triumphed over Covid-19’

Crediting the citizens of Mumbai for coming forward to help the police in combating the crisis situation due to Covid-19, Mumbai police commissioner Sanjay Pandey has said that Mumbai Police lost quite a few policemen during the pandemic but cumulative efforts, with citizens working hand in hand with the p

Visionary Talk: Sanjay Pandey, Mumbai Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter