Paytm Payments Bank

Paytm Payments Bank (PPBL) is an Indian payments bank, founded in 2015 and headquartered in Noida.[3] In 2015, it received the license to run a payments bank from the Reserve Bank of India.[4][5] It was launched in November 2017.[6]

Paytm Payments Bank
TypePrivate
IndustryFinancial services
Founded2015 (2015)[1]
FounderVijay Shekhar Sharma
HeadquartersNoida, India
Area served
India
Key people
Satish Kumar Gupta (CEO)[2]
ProductsBanking
ParentOne97 Communications
Websitepaytm.com/bank/

As of August 2020, Vijay Shekhar Sharma holds 51 per cent in the entity with One97 Communications Limited holding 39 per cent and the remaining 10 per cent of share is held by a joint venture between Vijay Shekhar Sharma and One97 Communications.[7] It has over 64 million account holders as of April 2021.[8]

On 11 March 2022, RBI prohibited PPBL from on-boarding new customers owing to "certain material supervisory concerns observed in the bank".[9]

History

In 2015, eleven companies received In-principle approval from the Reserve Bank of India to set up payments bank under the guidelines for Licensing of Payments Bank, Paytm was one of them.[5] Paytm Payments Bank' was formally launched by the Union Finance Minister of India, Arun Jaitley on November 28, 2017.[6][1]

It facilitated more than 485 crore transactions worth ₹4.6 lakh crore in financial year 2020.[10] It had processed 340 million UPI transactions amounting to ₹38,493 crore in February 2021,[11] It registered over 970 million digital transactions in March 2021.[8]

In March 2019, it received approval for its @Paytm UPI handle from the Securities and Exchange Board of India.[11]

Products and services

Paytm Payments Bank offers savings and current accounts with a debit card, facilitating fast and easy payments.[12] Paytm Payments Bank has issued seven million Visa debit cards through its platform in FY'21.[13]

Partnership

In January 2018, Paytm Payments Bank partnered with IndusInd Bank to offer fixed deposits.[14] It entered into a partnership with MasterCard for the issuance of virtual and physical debit cards in April 2020.[15] In January 2021, it tied up with Suryoday Small Finance Bank to offer fixed deposit services to its account holders.[16] Since June 2021, it is not providing new fixed deposit creation with Suryodaya Bank.[17]

Financials

Paytm Payments Bank reported a ₹19 crore profit for the financial year 2018-2019, making it the first payments bank in India to become profitable.[18] The company registered a profit of ₹29.8 crore for the financial year 2020.[10]

In June 2018, the Reserve Bank of India barred Paytm Payment Bank from opening new customer accounts, following an audit by the Reserve Bank of India, which made some observations about the process the company follows in acquiring new customers and its adherence to KYC norms.[19][20] However, in January 2019, it received approval from the RBI to resume on-boarding new customers.[21] In October 2021, RBI imposed a fine of ₹1 crore[22] on the bank for violating laws pertaining to payments and settlement. On 11 March 2022, RBI prohibited PPBL from on-boarding new customers owing to "certain material supervisory concerns observed in the bank".[9]

Awards and recognition
  • In September 2021, Paytm Payments Bank was awarded the ASSOCHAM's FinTech & Digital Payments Award 2021 in the category of Excellence in Payments by the Associated Chambers of Commerce and Industry of India.[23]
  • It was awarded the ETBFSI Excellence Award under the category 'Best Digital Bank of the Year' by The Economic Times in 2020.[24]
  • It won the Finacle Client Innovation Award, 2020 for the category of Ecosystem-led Innovation by Infosys.[25]
  • In October 2019, Paytm Payments Bank received the Digital Payments Award for outstanding performance from the Government of India. The award was presented by Ravi Shankar Prasad, the Minister of Communication, Electronics & IT and Law & Justice, at the 2019 MeitY Start-up Summit.[26]
  • It won the Infosys Finacle Client Innovation Award under categories such as process innovation, innovative custom components and product innovation in 2019.[27]
  • It also won with Celent Model Bank 2019 Award.[28]
  • The company was awarded the RBI Asia Trailblazer Award by Retail Banker International in 2019.[29]
  • In 2018, the National Payments Corporation of India (NPCI) recognized the company with Excellent Award 2018 for excellent performance for High Acceptance of Rupay card for E-Comm Transaction & Excellent performance in Aadhaar Enabled Payment System (AePS).[30]

See also

References
  1. "Arun Jaitley launches Paytm Payments Bank, vouches for digital payments". Business Today. November 28, 2017.
  2. Ahuja, Aakanksha (October 24, 2018). "Paytm Payments Bank appoints Satish Kumar Gupta as MD and CEO". Livemint.
  3. "Paytm Payments Bank Launched: All About India's Mobile-First Bank With Zero Minimum Balance". India.com. November 29, 2017.
  4. "Paytm gets a green signal from the RBI to formally launch its 'Payments Bank'". The Economic Times. January 4, 2017.
  5. "RBI gives licence for 11 payments banks". The Hindu Business Line. January 23, 2018.
  6. Srivats, KR (January 9, 2018). "Arun Jaitley launches Paytm Payments Bank". The Hindu Business Line.
  7. Shetty, Mayur (August 29, 2020). "Paytm seeks in-principle nod on small bank licence". The Times of India.
  8. "Paytm Payments Bank processes 970 million digital transactions in March". Livemint. April 13, 2021.
  9. "RBI directs Paytm Payments Bank to stop onboarding new customers, orders IT audit". Moneycontrol. Retrieved 2022-03-14.
  10. "Paytm Payments Bank posts net profit of ₹30 crore in FY20". The Hindu Business Line. June 9, 2020.
  11. "Paytm Payments Bank can now issue payment mandates for IPOs as SEBI approves UPI handle". Financial Express. March 15, 2021.
  12. Motiani, Preeti (April 7, 2021). "Payments bank deposit limit hiked to Rs 2 lakh by RBI". The Economic Times.
  13. "Paytm Payments Bank overachieved its target of issuing Visa debit cards at 7 million in FY21 as against goal of 1 million". Business Insider. March 1, 2022.
  14. Anupam, Suprita (January 8, 2018). "Paytm Payments Bank Partners With IndusInd Bank To Offer Fixed Deposit". Inc42.
  15. "Paytm Payments Bank partners with Mastercard". The Times of India. April 17, 2020.
  16. "Paytm Bank account holders can now avail FD services from Suryoday Bank". Livemint. January 19, 2021.
  17. @paytmbankcare (15 June 2021). "@KanhapskStonie Hi, We would like to inform you that we are not providing new FD creation with Suryodaya Bank. Rest…" (Tweet) – via Twitter.
  18. Merwin, Radhika (September 10, 2019). "Why five out of the 11 payments banks have shut shop". The Hindu Business Line.
  19. Raj, Amrit; Verma, Shrutika (August 1, 2018). "Paytm payments bank stops enrolling new users after RBI concerns". Hindustan Times.
  20. "Paytm Payments Bank is still not allowed to add new customers, says CEO". Business Standard. August 25, 2019.
  21. Bhakta, Pratik; Chanchani, Madhav (January 1, 2019). "RBI allows Paytm Bank to restart account opening t". The Economic Times.
  22. "Reserve Bank of India - Press Releases". www.rbi.org.in. Retrieved 2022-03-14.
  23. "ASSOCHAM Annual FinTech Digital Payments 2021". ASSOCHAM . September 8, 2021.
  24. "ETBFSI Awards". Twitter.com. The Economic Times. December 4, 2020.
  25. "Infosys Finacle Client Innovation Awards 2020 – Winner Announcements". EdgeVerve Systems. 2020.
  26. "MeitY Start-up Summit, 2019". Paytm via Twitter. October 29, 2019.
  27. "Winners of Infosys Finacle Client Innovation Awards 2019 Announced". Infosys. April 10, 2019.
  28. "Paytm Payments Bank: Building a Truly Digital Bank". Celent.com. April 11, 2019.
  29. "2019 winners – Retail Banker International Asia Trailblazer Awards". rbiasiatrailblazer.co.uk. 2019.
  30. "Excellence Award 2018". npci.org.in. National Payments Corporation of India. 2018.
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