Digital payment player Paytm will transfer its wallet business to Payment Bank Ltd on Tuesday. The company is already sending messages to all wallet holders about its new move.
According to the website, the Payment Bank is licensed by the Reserve Bank of India. and now through this, Paytm can now accept customer deposits up to Rs. 1 lakh per customer in a wallet, savings or current account and offer other banking services like Debit Cards, online Banking, and mobile banking.
To open an account, users need to complete KYC by signing up digitally.
Meanwhile, Paytm has recently raised funding of Rs $ 1.4 billion from Softbank. and this is the largest investment by the latter in a single company in India.
Paytm said that: "This investment will help us grow our leadership in the country's payment ecosystem, expand our user base and build a suite of financial services products for our customers."
The company added it will also complement our plan to invest Rs 10,000 Cr (approx $1.6 Bn) over the next three to five years towards our commitment to enable half a billion Indians to join the mainstream economy.
"We have been going from strength to strength in our payments division. Our zero cost QR Code-based payment solution has been adopted by millions of merchants and is now synonymous to digital payments in India. Going forward, we will continue to innovate and expand into new online and offline use cases so we can serve you better, and that's a promise," Paytm further added.
Paytm offers mobile wallet (over 220 million users) It had raised $60 million from Taiwanese chip maker MediaTek last year.