Paytm is now in the final stages of approval from the Reserve Bank Of India (RBI) for the launch of its payments bank.
Firstly, What is a payments bank? Well, payments bank are a new model of banks, a brainchild of the Reserve Bank Of India. These banks can accept a restricted deposit which is currently limited to 1 lakh per customer account. These banks cannot issue loans and credit cards. Both current account and savings accounts can be operated by such banks.
Paytm has its strategy and technology in place and is waiting for a final nod from the Reserve Bank of India (RBI) before it finalizes its launch date, said Vijay Shekhar Sharma, founder of Paytm. Sharma had earlier hinted at a Diwali launch for the payment bank.
The company is planning to launch a differentiated product which will have wealth management built in along with the savings bank accounts, said Sharma.