Paytm plans to launch India’s first payments bank by the end of this financial year and is counting on its mobile wallet experience to give it a clear advantage over established business houses that will be its main rivals. Paytm expects to touch Rs 10,000 crore in deposits in the next three years, building on existing consumer base and technological and costefficient set up. Paytm has more than 104 million mobile wallets and expects that to touch 150 million by March 2016.
Paytm – Points to Note
- Paytm is an Indian e-commerce shopping website launched in 2010, owned by One97 Communications which initially focused on Mobile and DTH Recharging.
- The company is headquartered in Noida, India. It gradually provided recharging and bill payment of various portals including electricity bills, gas bills, as well as telephone bills.
- Paytm entered India’s e-commerce market in 2014, providing facilities and products similar to businesses such as Flipkart, Amazon.com, Snapdeal.
- In 2015, it added booking bus travel.
Payment Banks
- The Payment Bank can accept deposits, payments and remittance services, internet banking and function as busines correspondant of other banks.
- Initially, they are allowed to collect deposits up to Rs 1 lakh per individual.
- They can facilitate money transfers and sell insurance and mutual funds.
- They can issue ATM/debit cards, but not credit cards.
- They cannot set up subsidiaries to undertake non-banking financial services activities. More importantly, they are not allowed to undertake lending activities at all.
Test Your Knowledge
Who is the Founder of Paytm?
The minimum paid-up capital required to set up payments and small banks is ______.
