Paytm gets second payment bank licence after Airtel
Mumbai: The Reserve Bank of India has issued a payment bank licence to Paytm which is the second organisation in the country to receive this kind of licence, according to company sources here on Wednesday.
The central bank had issued payment bank licence to mobile company, Airtel, earlier which has already launched a pilot project in Rajasthan. It may expand its operation to other parts later.
Prior to this development, Paytm had announced the integration of the unified payment interface app ( UPI with the new app BHIM) which was launched by Prime Minister Narendra Modi a few days ago. The payment bank will be merged with its Wallet so that the wallet balance automatically becomes a customer’s bank balance.
A Payment Bank, it may be mentioned here, a kind of bridge between prepaid wallet and a fulfledged bank account. The aim is to reach deeper and help improve financial inclusion.
These banks can accept deposits up to Rs. One lakh per customer and pay interest applicable on these deposits. Airtel payment bank is offering 7.25 percent per annum interest to its customers.
A payment bank, however, can not loan money to people or issue credit cards. They can issue ATM and debit cards, unlike e-wallets.