Paytm to launch payments bank next week, names Renu Satti as its new CEO

One97 Communications owned digital wallet company, Paytm, has received the final approval from the Reserve Bank of India for its payment bank. The Paytm Payment Bank will start operations from May 23.

The wallet money will be transferred to the Paytm Payments Bank once the wallet business becomes part of the new company. In case consumers do not wish for that, they have to inform Paytm, which will in turn transfer the wallet balance to the consumer's bank account once such details are shared. Such communication will have to be made before May 23.

The digital payments and commerce firm has named Renu Satti as its new CEO. 

One97 had said in December that it was preparing to merge its wallet business with the payment bank once it received regulatory approval. Earlier this week, Paytm announced that it had received the final license from the Reserve Bank of India for its payments bank entity.

With the payment bank, Paytm will also be able to meet the expected RBI guidelines for full KYC for wallets, since the bank will do full KYC for its customers any way while opening their bank accounts. The new RBI guidelines are expected by the end of the month.

On Thursday, Paytm raised $1.4 billion fundraise from SoftBank, the largest such infusion of capital by a single investor in an Indian digital company.