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BANKING AND INSURANCE

The nation gears for payment banking

The nation gears for payment banking
The Siliconreview
07 November, 2017

Paytm has brought in a new surge of payment banks in the country. With over 10 million customers showing interest in banking with the firm, Paytm is determined to drive the payments bank sector, which is still in its nascent stage in the country, to greater heights. The FinTech Company is planning to roll out several other banking products in the near future with the aim of making Paytm Payments bank the largest digital bank not only in the country but also in the world. Moving from digital inclusion to financial inclusion, the firm is now heading towards the unbanked and under-banked sectors.

At this point it is to be noted that payment banks have not existed for very long in India. This is because the Reserve Bank of India guidelines in this regard is not very convenient. As of now, the maximum amount a customer can deposit is Rs. 1 lakh and he cannot be issued loans or credit cards.

The firms intends to cater to the unbanked and under banked section of the population by providing them with current account, savings account, ATM card, debit card, net banking and mobile banking facilities. Paytm stands to gain from interoperability guidelines as that will help the company meet its target of acquiring 500 million customers in the next three years. The company had recently announced an investment of $500 million for KYC expansion during the next three years. This surely ushers in a new era of banking in the country.