Digital wallet service company, Paytm owned by One97 Communications Ltd, said on Monday that it will be converted into Paytm Payments Bank after the company is granted licenses by Reserve Bank of India.

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The company said that it will transfer its wallet business into the newly incorporated Paytm Bank entity following the receipt of necessary approvals.

The Paytm Payments Bank will start under a Payments Bank licence awarded to Vijay Shekhar Sharma, founder of Paytm and who owns 51% majority stake in the company.

According to reports by the Livemint, this new unit will be responsible for the firm’s payment businesses, which include the Paytm wallet whereas One97 Communications still remains in charge of the e-commerce business.

The Payments bank would not have any external shareholders, the report said.

In a statement issued by the company, it said that if the customer chooses not to use the Paytm wallet, he/she could send emails to their customer care emails ids and notify the 
company of opting out. The balance in the wallet could then be redeemed by a one-time transfer to their own bank accounts. However, the appropriate details such as the name of the account holder, account number and IFSC Code of the bank must also be provided to redeem the amount within 15 days of the notification.

Failing to cooperate with these norms, the company said that it would keep the customers money in a ‘specially designated’ Payments bank account.

However, the customer will not be able to transact with that money until personal bank details are submitted, the company said.