The digital wallet and e-commerce company Paytm is looking at a summer launch this year. Paytm payments bank project called as “Project Pokhran”, is in full swing to hire professionals and set up offices for the new business. EY (Ernst & Young) and McKinsey & Co are advising Paytm for the banking foray.
Paytm founder, Vijay Shekhar Sharma said “Payment is one event of a consumer relationship and we can grow this through the deposits”.
Vijay Shekhar Sharma, Paytm founder and chief executive of One97 Communication that owns Paytm, was one of the 11 applicants to receive “in-principle” approval by the Reserve Bank of India (RBI) to open payments banks in August last year,.
This internal project named “Project Pokhran” recruits people and set up offices for payments bank services. Global consultants EY (Ernst & Young) and McKinsey & Co are the advisers to the company for its new business.
The name of the banking business head may be announced by Paytm in February and the probable candidate is from the consulting world, Sharma told Business Standard. Paytm has to seek RBI permission before announcing the name.
The company will have its banking headquarters in Noida next to New Delhi, and plans to set up 20 branches for the payments bank. The capital required to set up a payments bank is minimum Rs 100 crore and the banks will have to invest 75% of their funds in government securities.
Paytm in its official blog states “With Paytm Payments Bank, we are well on our way to becoming a unique Indian brand, this will be a massive leap in the direction of becoming India’s largest internet conglomerate”.
“That day is not far, when our users can sort out their mutual funds & insurance related problem with Paytm,” it added.