Financial sector disruptor, Vijay Shekhar Sharma’s Paytm has got the approval to launch its payment bank business. The digital payment leader is expected to start payment bank operations by next month.
“Today, RBI gave permission to formally launch Paytim Payments Bank. We cant wait to bring it in front of you” Vijay Shekhar Sharma remarked in blog.
Payment bank operation will enable the company to launch the high graded open system payment instruments or the multipurpose cards. Payment bank license allows the holder to accept deposits without extending credit. The business is especially good for digital transaction firms as it will help them to deal with public money with more ease.
Multipurpose cards can be used for sending money from one person to another, withdrawal of high amount through ATMs etc. As per regulations, only banks or entities with the association of banks can issue such cards.
Globally, Paypal is the leader in the wallet and payment segment. Paytm is expected to make strong foot in the sector as Paypal operations are constrained in the country.