Paytm migrates 170 Mn wallets to payments bank, aims 500 Mn by 2020

Paytm has been making quick strides on its payments bank front. The banking arm of the Noida-based company has migrated 170 million (17 crore) digital wallets to its payment bank and aims to reach 500 million account mark by 2020.

The bank will set-up 31 branches with a network of cash deposit machines and onboard 1,00,000 agents to provide banking service by the end of the first year of operation, reports Times of India.

At present, Paytm Payment Bank is focusing on completing Know Your Customer (KYC) operations across the country. Earlier, it said to open 10,000 banking outlets where customers can come in for biometric authentication and other basic banking facilities as well.

Each outlet of banking would be a combination of a mini-branch with two or three people and a network of business correspondents who will undertake basic banking activities and complete KYC formalities for the company’s customers.

"We are offering a savings rate of 4% but customers can get a higher return on wealth management products. Once they have completed their KYC, investing in any third-party products — fixed deposits, mutual funds or even gold — will be completely seamless," said Renu Satti to TOI.

Last month, RBI came up with new guidelines wherein the apex banking body directed companies and banks to make KYC compliant PPIs - mobile wallets, interoperable within the next six months.

The Paytm Payments Bank has set a target to open 200 million accounts across current and savings account, and mobile wallets by May next year. It has also proposed to set up 33 controlling offices and 3,000 access points by March 31, 2018.

Earlier this week Paytm had integrated BHIM UPI, the government-owned mobile payments interface, onto its platform. However, the Softbank-funded company wouldn’t shift merchants to Bharat QR from its own QR codes. "We already have five million merchants across the country, who have obtained the Paytm QR code. We do not want to revise that," said Satti.