Paytm, India’s top mobile payments company announced that it now has permission from the Reserve Bank of India to launch a digital bank.
The CEO and founder of Paytm Vijay Shekhar Sharma confirmed that he will be taking a full-time executive role in the new venture. However, he did not say anything about the launch. Paytm has raised money from Ant Financial, the financial services affiliate from Alibaba.
“This is our chance to build something that every Indian can be proud of. No other role or responsibility means as much to me as the privilege of building Paytm Payments Bank, and I intend to take a full-time executive role in the Bank”, said Sharma in a blog post.
Sharma told TechCrunch that Paytm will work with local traditional banks to offer loans for lending and share data. He also said that the Paytm Payments Banks will be made user-friendly option for new customers, with a particular focus on modernizing the passbook and other traditional systems for the digital era.
Sharma aims to create a bank that would support half billion population in India. Paytm had a more than successful 2016 adding to its value up to $5 billion. Paytm is already considered India’s top mobile banking service.
Since the Indian Government introduced that demonetization program by recalling the 500 and 1000 indian rupee bank notes. There has been a shortage for cash; people have been relying on applications like Paytm. Creating more demand for Paytm. Before demonetization, Paytm claimed to have 135 million digital wallets in use. Within 12 of demonetization Paytm reached seven million transactions. By the end of December 2016, the company said it had 177 million digital wallets.
Vijay Sharma also said that, “From villages to cities, from corner vegetable stalls to milk booths, small shops to large retailers, everyone embraced the new way to pay by Paytm”.