Paytm has been spending millions to comply with the RBI guidelines to strengthen its user base for its payments bank. It recently announced that it will invest $500 million into KYC(know your customer) operations “to build the most dominant KYC-compliant wallet and payments bank in the country.”
In order to scale up, it also planned on hiring 10,000 additional staff. “We are getting ready with more than one lakh banking outlets and KYC points to expand our network across the country,” Renu Satti, MD and CEO, Paytm Payments Bank said.
Recently in her conversation with ET Rise Ms Satti said,” Till now, 10 million customers have shown interest in banking with us,” showing how confident Paytm is about owning the major part of the market.
Talking about her vision to make Paytm Payments Bank the biggest digital bank not only in the country, but also in the world, Satti said the fintech company is getting ready to roll out several other banking products.
Paytm is also focusing on “unbanked and underbanked” areas to fulfil their mission. Talking about the financial areas that are not in the reach of Payments Bank, will be covered through collaboration with other financial institutions.
Can and Cannots of a Payments Bank
Payments Bank is a completely new concept in India, but according to RBI Guidelines, it permits the amount that can be deposited, which is 1 lakh and cannot issue loans and credit cards. Though users can avail other facilities like ATM Cards, Debit Cards, netbanking, savings account and current account.
“Our real commitment is to those who are unbanked or underbanked and we want to offer those products and services and not just a bank account to these customers,” explained Satti.
Paytm plans to gain from interoperability guidelines and it will help them to achieve their target of achieving 500 million customers by the next three years.
(This development was first reported by ET)