Paytm Payments Bank (PPBL) is an Indian
payments bank
Payments banks are new model of banks, conceptualised by the Reserve Bank of India (RBI), which cannot issue credit. These banks can accept a restricted deposit, which is currently limited to ₹200,000 per customer and may be increased further. ...
, founded in 2015 and headquartered in
Noida
Noida, short for New Okhla Industrial Development Authority, is a planned city located in Gautam Buddha Nagar district of the Indian state of Uttar Pradesh. Noida is a satellite city of Delhi and is a part of the National Capital Region (NCR) o ...
. In the same year, it received the license to run a payments bank from the
Reserve Bank of India
The Reserve Bank of India, chiefly known as RBI, is India's central bank and regulatory body responsible for regulation of the Indian banking system. It is under the ownership of Ministry of Finance, Government of India. It is responsible for ...
and was launched in November 2017.
[ In 2021, the bank received a scheduled bank status from the RBI.][
]Vijay Shekhar Sharma
Vijay Shekhar Sharma (born July 15, 1978) is an Indian technology entrepreneur and billionaire businessman. He is the Chairman, Managing Director and CEO of One97 Communications and its consumer brand Paytm. He founded Paytm in 2010.
In Januar ...
holds 51 per cent in the entity with One97 Communications Limited holding 49 per cent . Vijay Shekhar Sharma is the promoter of Paytm Payments Bank, and One97 Communications Limited is not categorized as one of its promoters.
History
In 2015, Paytm Payments Bank Limited had received in-principle approval from the Reserve Bank of India
The Reserve Bank of India, chiefly known as RBI, is India's central bank and regulatory body responsible for regulation of the Indian banking system. It is under the ownership of Ministry of Finance, Government of India. It is responsible for ...
to set up a payments bank and was formally inaugurated on November 28, 2017.
In the financial year 2020, the bank facilitated more than 485 crore transactions worth ₹4.6 lakh crore. It processed over 778 million UPI transactions amounting to ₹89,388 crore in June 2022 and continues to be India’s biggest UPI beneficiary bank with over 1,370 million digital transactions in June 2022.
In March 2021, the bank received approval for its @Paytm UPI handle from the Securities and Exchange Board of India
The Securities and Exchange Board of India (SEBI) is the regulatory body for securities and commodity market in India under the ownership of Ministry of Finance within the Government of India. It was established on 12 April 1988 as an executive ...
for issuing payment mandates for initial public offerings (IPOs) through the Unified Payments Interface (UPI).
Products and services
Paytm Payments Bank offers savings
Wealth is the abundance of valuable financial assets or physical possessions which can be converted into a form that can be used for transactions. This includes the core meaning as held in the originating Old English word , which is from an I ...
and current accounts
A transaction account, also called a checking account, chequing account, current account, demand deposit account, or share draft account at credit unions, is a deposit account held at a bank or other financial institution. It is available to the ...
with a debit card
A debit card, also known as a check card or bank card is a payment card that can be used in place of cash to make purchases. The term '' plastic card'' includes the above and as an identity document. These are similar to a credit card, but u ...
, facilitating fast and easy payments.
Paytm Payments Bank has issued seven million Visa debit cards through its platform in FY'21.
Partnership
In January 2018, Paytm Payments Bank partnered with IndusInd Bank
IndusInd Bank Limited is an Indian financial services headquartered in Mumbai (Maharashtra). The bank offers commercial, transactional and electronic banking products and services. IndusInd Bank was inaugurated in April 1994 by then Union Financ ...
to offer fixed deposits. It entered into a partnership with MasterCard for the issuance of virtual and physical debit cards in April 2020. In January 2021, it tied up with Suryoday Small Finance Bank to offer fixed deposit services to its account holders. Since June 2021, it is not providing new fixed deposit creation with Suryodaya Bank.
Financials
Paytm Payments Bank reported a ₹19 crore profit for the financial year 2018-2019, making it the first payments bank
Payments banks are new model of banks, conceptualised by the Reserve Bank of India (RBI), which cannot issue credit. These banks can accept a restricted deposit, which is currently limited to ₹200,000 per customer and may be increased further. ...
in India to become profitable. The company registered a profit of ₹29.8 crore for the financial year 2020.
Legal challenges
In June 2018, the Reserve Bank of India
The Reserve Bank of India, chiefly known as RBI, is India's central bank and regulatory body responsible for regulation of the Indian banking system. It is under the ownership of Ministry of Finance, Government of India. It is responsible for ...
barred Paytm Payment Bank from opening new customer accounts, following an audit by the Reserve Bank of India
The Reserve Bank of India, chiefly known as RBI, is India's central bank and regulatory body responsible for regulation of the Indian banking system. It is under the ownership of Ministry of Finance, Government of India. It is responsible for ...
, which made some observations about the process the company follows in acquiring new customers and its adherence to KYC norms. However, in January 2019, it received approval from the RBI to resume on-boarding new customers. In October 2021, RBI imposed a fine of ₹1 crore 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".''
Awards and recognition
* In September 2021, Paytm Payments Bank was awarded the ASSOCHAM
The Associated Chambers of Commerce and Industry of India () is a Non-governmental organization, non-governmental trade association and advocacy group based in New Delhi, India. The organisation represents the interests of trade and commerce in ...
's FinTech & Digital Payments Award 2021 in the category of Excellence in Payments by the Associated Chambers of Commerce and Industry of India Associated may refer to:
*Associated, former name of Avon, Contra Costa County, California
* Associated Hebrew Schools of Toronto, a school in Canada
*Associated Newspapers, former name of DMG Media, a British publishing company
See also
*Associat ...
.
* It was awarded the ETBFSI Excellence Award under the category 'Best Digital Bank of the Year' by The Economic Times
''The Economic Times'' is an Indian English-language business-focused daily newspaper. It is owned by The Times Group. ''The Economic Times'' began publication in 1961. As of 2012, it is the world's second-most widely read English-language bus ...
in 2020.
* It won the Finacle Client Innovation Award, 2020 for the category of Ecosystem-led Innovation by Infosys
Infosys Limited is an Indian Multinational corporation, multinational information technology company that provides business consulting, information technology and outsourcing services. The company was founded in Pune and is headquartered in Ba ...
.
* In October 2019, Paytm Payments Bank received the Digital Payments Award for outstanding performance from the Government of India
The Government of India (ISO: ; often abbreviated as GoI), known as the Union Government or Central Government but often simply as the Centre, is the national government of the Republic of India, a federal democracy located in South Asia, c ...
. The award was presented by Ravi Shankar Prasad
Ravi Shankar Prasad (born 30 August 1954) is an Indian politician and lawyer, from the Bharatiya Janata Party. A Member of Parliament since 2000, first in the Rajya Sabha (2000-2019) and then in the Lok Sabha (since 2019), Prasad has served as Un ...
, the Minister of Communication, Electronics & IT and Law & Justice, at the 2019 MeitY Start-up Summit.
* It won the Infosys
Infosys Limited is an Indian Multinational corporation, multinational information technology company that provides business consulting, information technology and outsourcing services. The company was founded in Pune and is headquartered in Ba ...
Finacle Client Innovation Award under categories such as process innovation, innovative custom components and product innovation in 2019.
* It also won with Celent Model Bank 2019 Award.
* The company was awarded the RBI Asia Trailblazer Award by Retail Banker International in 2019.
* In 2018, the National Payments Corporation of India
The National Payments Corporation of India is an umbrella organization for operating retail payments and settlement systems in India, is an initiative of Reserve Bank of India (RBI) and Indian Banks’ Association (IBA) under the provisions of ...
(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).
See also
* Jio Payments Bank
Jio Payments Bank is an Indian payments bank, which started operating in 2018 and is owned by Reliance Industries. Reliance Industries was granted an in-principle approval by the Reserve Bank of India (RBI) to establish a new payments bank un ...
* India Post Payments Bank
India Post Payments Bank, abbreviated as IPPB, is a division of India Post which is under the ownership of the Department of Post, a department under Ministry of Communications of the Government of India. Opened in 2018, as of January 2022, t ...
* Aditya Birla Payments Bank
Aditya Birla Payments Bank Limited (ABPB) was a payments bank started as a joint venture by Aditya Birla Nuvo Ltd. and Idea Cellular. Launched on 22 February 2018, it is the fourth payments bank to begin operations since issuance of licenses t ...
References
External links
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{{Banking in India
Payments banks
Banks established in 2015
Online payments
Indian brands
Privately held companies of India
Indian companies established in 2015
2015 establishments in Uttar Pradesh