Paytm’s digital banking offering aka Paytm Payments Bank or PPB is all set to make their customers’ lives a whole lot easier.
According to the latest media report, PPB is planing to facilitate cross-broader and domestic remittances soon. This newly proposed initiative comes after PayTM, and several other investors put forward a bid to acquire a new umbrella license, aka NUE license, from the RBI.
Satish Kumar Gupta, CEO and Managing Director of Paytm Payments Bank, in a statement about the same, said that the adoption pace of digital payments in the country will grow significantly if their bid is approved.
Furthermore, Gupta also mentioned that PPB has already become the biggest enabler of digital transactions in the country by reaching the milestone of processing 970 million transactions in March 2021. But that’s not all.
Paytm Payments Bank has also become the largest ‘digital-only’ banking institution with close to 64 million bank accounts being held by consumers and deposits of over Rs 3,200 crores.
Note here that PPB’s overal digital transactions are diversified across several other PayTM facilitate platforms such as UPI, digital wallet, P2P transfer and FASTag.
Thus, as a result, the digital bank was not worried about the repercussions of National Payments Corporation aka NCPI’s decision to cap market share when it comes to UPI transactions, said Gupta.
He also added that PPB have been reporting a profit from the year 2018-19 and this will help the bank see conversion from being a payments bank to to a small finance bank aka SFB.
Despite promising that it will relax the rules to allow payments banks to convert into SFBs if they are profitable for three consistent years, the RBI is yet to release an official notice about the same. As of now, Paytm is seeking to convert their business into an SFB which will also enable them to extend loans to their customers.
Gupta mentioned that Paytm Payments Bank was still able to grow their transactions in both numbers and in value by almost 25% even though it was severely hit by the COVID-19 included lockdown in the first three months of FY21.
In addition to growing their domestic remittance business, Paytm has already received approval for enabling the facilitation of inward remittance from foreign countries from 2022. And currently, it is focusing on opening up another business avenue by trying to set up an NUE as an investor.
Gupta said that cannot share the details of how Paytm will leverage the NUE if approved by India’s apex bank. But, hinted that it will be game-changing for India’s digital payments ecosystem.
Thus, all in all, it is well understood that the Vijay Shekhar Sharma led fintech giant is definitely has been whipping up something big under the wraps.
What is it? Only time will tell. We will keep you updated on all future developments. Until then, stay tuned.