Your Paytm wallet will now convert to Paytm Bank: Here’s a quick guide
- December 8, 2016
- Posted by: S S N Raju Penmetsa
- Category: Uncategorized
Paytm, one of the leading e-wallet companies in India, is fully able to merge its business portfolio into the new entity Paytm Bank after receiving the necessary approval from the Reserve Bank of India, A media report said on Monday.
“According to the guidelines of the Reserve Bank of India (RBI), the company would transfer its business portfolio to the new Paytm Payments Bank Ltd. after receiving necessary approvals,” said One97 Communications Ltd., Paytm’s parent company , In a statement about Paytm Bank.
The company had formed a new company called Paytm E-commerce Pvt Ltd for its market activities in August this year.
According to reports, RBI had last year granted a payment bank license “in principle” 11 entities, including to Vijay Shekhar Sharma, founder of One97 Communications.
Approximately 11 entities have received the license including Airtel, Vodafone, Post Department, RIL and Aditya Birla Nuvo Ltd.
Airtel has already launched its bank of payments.
According to the media, this new unit will be responsible for the company’s payment activities, including the Paytm portfolio, while One97 Communications is still responsible for e-commerce activity.
Founder Vijay Sharma will hold a 51 percent stake in the payments bank, with the remaining owned by One97 Communications Pvt Ltd. Alibaba and its subsidiary Ant Financial hold 40 percent stake in One97 Communications, having invested approximately Rs 4637 crore (USD 680 Million) in the company.
“Paytm’s current Wallet of the user would move to the Paytm Payments Bank Limited in the same capacity if the company does not receive any communication from the user before December 21, 2016,” said the company’s release
“If the customer chooses not to use the Paytm portfolio, he / she could send e-mails to their customer care e-mails and notify the company of opting out. The portfolio balance could then be redeemed By a one-time transfer to their own bank accounts, “the statement said.
After the government’s dismantling, which downgraded the use of Rs 500 and 1000 tickets from November 8 midnight in order to eliminate black money system and promote a cashless, digital payments economy, Paytm , As well as other mobile portfolios, appeared as one of the main winners.