After getting the final approval from Reserve Bank of India, Paytm is finally going to start operating its payments bank from May 23rd. The announcement was made official by One97 Communications, parent company of Paytm.
The statement further states that Renu Satti will take over as CEO of Paytm Payments Bank. Renu is currently working as Vice President, Business at Paytm. Shinjini Kumar, another executive and director of PwC consultancy, whom Paytm had hired in February to lead payments bank, will leave the company.
In the statement, a Paytm spokesperson added that the company has got final approval from RBI and Renu Satti has been approved to lead. Renu Satti has been with Paytm for over a decade. She had started as an HR manager and took her steps to be one of the most notable names in one of the most valued Indian startups. Renu has worked on projects including Paytm marketplace and digital wallet.
In November 2015, RBI had granted approvals to 11 applicants, who had applied for payment bank licenses. In January this year, Paytm had announced that Payment bank operations will commence within 2 months, however, the plan was delayed.
The statement had also stated that all the active accounts on Paytm wallet will be automatically transferred to the new interface and their balance will remain unaffected. If a user does not want to migrate to the new payments bank, he will have to notify Paytm through a written request. Also, if the accounts have been unused for over 6 months and have zero balance, Paytm will transfer them to payments bank on the request of account holder.
With over 2.18 crore wallet accounts, Paytm plans to have over 2 crore savings or current accounts in payments bank within next 6 months. Before 2020, Paytm has plans to touch the mark of 50 crore accounts.