Paytm Wallet to merge with coming Payments Bank

One97 Communications, the firm that owns Paytm will restructure its current business in preparation of its upcoming Payments Bank. As per the directions of the Reserve Bank of India (RBI), the company would transfer its wallet business to the newly incorporated Paytm Payments Bank Limited (PPBL) after receipt of necessary approvals. RBI had earlier awarded “In-principle Payments Bank license” to founder and CEO of One97 Communications, Vijay Shekhar Sharma.

Paytm Payments Bank Limited is in the process of obtaining the final license from the Reserve Bank of India and would commence its operations after obtaining due approvals. As per regulatory requirements, Vijay Shekhar Sharma will own majority share in Paytm Payments Bank Limited.

Paytm e-commerce and Paytm payments bank are currently separate entities, incorporated in August. The wallet service, currently under the e-commerce arm, will be de-merged and later merged with the payments bank. The report said, without citing confirmation, that the e-commerce arm may then work as an entry for China’s Alibaba into India.

Paytm founder Vijay Shekhar Sharma, holds 51% share in the payments bank, with the remaining owned by One97 Communications, have been granted an ‘in-principle payments bank licence’ from the central bank.

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