Paytm Payments Bank, which got the final approval from the Reserve Bank in January, hopes to start operations by the month-end, Paytm's Vijay Shekhar Sharma said. "If the RBI blesses us, we will be able to have our bank by this month-end. Banking must be made available to everyone, the money that the customer puts in isn't a liability but an asset," Sharma said at the India Today Conclave in Mumbai.
Earlier this year, Paytm had written a blogpost to quash rumours about its wallet becoming redundant from 15 January. "There are some rumors circulating that you will not be able to use the Paytm Wallet after 15th January! Nothing could be farther from the truth. On the contrary, Paytm Wallet users will soon enjoy additional benefits through Paytm Payments Bank Account," the company had written.
Stating that banking in the present form is outdated, he said, "Versace suits will not change the banking model. Our payments bank will be built on a new model that will be focussed on bringing financial services to the hundreds of millions of unserved/under-served."
Taking a swipe at the way banks have dealt with loans given to industrialists and especially in dealing with the big-ticket defaulters, Sharma said, "the present financial system penalises a sincere person, but if someone speaks the language of those in the corridors of power, he takes a loan of hundreds of crores and fails to pay it back, he will still manage to live in London or such locales."
Sharma expressed belief that with greater penetration of mobile Internet connectivity, his business will grow further. Paytm currently has about 21.5 crore subscribers, Sharma said adding as against this SBI has 20.7 subscribers. Paytm does about 20 crore transactions a month, while according to RBI data, all other e-wallets put together do 19 crore transactions.
Paytm Payments Bank Limited (PPBL) is 51% owned by Vijay Shekhar Sharma & 49% ownership is with One97 Communications Ltd.
With input from PTI