After months of delay, Paytm is now all set to commence its payments bank operations from May 23, having received the final approval from the Reserve Bank of India (RBI).
“…Paytm Payments Bank Ltd (PPBL) has received the final licence from the RBI and would commence its operations on May 23, 2017,” it said in a public notice.
The company will transfer its wallet business, which has over 218 million mobile wallet users, to the newly incorporated entity — PPBL — under the payments bank licence awarded to a resident Indian, Vijay Shekhar Sharma, the founder of One97 Communications that owns Paytm.
After May 23, the Paytm wallet will move to PPBL. In case consumers do not wish for that, they have to inform Paytm, which will in turn transfer the wallet balance to the consumer’s bank account once such details are shared. Such communication will have to be made before May 23.
In case the wallet has been inactive with no activity in the last six months, the transfer to PPBL will only happen once the consumer gives specific consent.
Payments banks can accept deposits from individuals and small businesses up to Rs 1 lakh per account.Paytm was earlier slated to begin operations around Diwali last year. In 2015, the RBI had awarded in-principle approval to Sharma to set up a payments bank along with 10 others.
