This will be used for developing its technology and build physical branches in rural areas. Paytm had borrowed close to Rs 300 Cr from private sector lender ICICI Bank in working capital loans in March 2016. This was for treasury management and that the company was adequately funded.
Tech Mahindra has not elaborated as to why it is not starting a payments bank and whether it has communicated the same to the RBI. Tech Mahindra received an in-principle approval from the RBI in August 2015 and was supposed to commence operations in the second half of 2016. RBI had permitted 11 entities to start a payments bank, with this development the list is down to eight.
Aditya Birla Nuvo on Friday announced it is forming a joint venture with Idea Cellular to form a payments bank in the name of ‘Aditya Birla Idea Payments Bank Limited’ wherein the company will be holding up to 51% shares and balance 49% shares shall be held by Idea Cellular. Payments banks are allowed to collect deposits of up to Rs 1 lakh initially per individual.
As part of its plans for setting up a payments bank, the Department of Posts said it will be setting up 1,000 ATMs and install a core banking solution at 25,000 post offices by March 2016, reports the Press Trust of India. The Department of Posts was one of the 41 applicants that received an in-principle nod from the Reserve Bank of India to set up a payments bank in August. Apart from accepting deposits, a payments bank can offer remittance services through branches, ATMs, Business Correspondents and mobile banking.
Khullar will lead partnerships and build partners in insurance companies, banks and nonbanking financial institutions. Paytm also appointed Vikas Purohit in a leadership position for its payments bank, and plans to hire 3,000 people for the same business. Prior to joining Paytm, Khullar worked with Boston Scientific as the APAC, Middle East and Africa marketing manager for a year, as the business head for 1.5 years and as a senior manager of strategic marketing for about a year.