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

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

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

barred Paytm Payment Bank from opening new customer accounts, following an audit by the

, 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

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).

References

External links

* {{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