Digital payment and commerce company Paytm has received the final nod from the Reserve Bank of India and is set to launch Paytm Payments Bank on May 23.
According to a statement from One97 Communications Pvt. Ltd, which owns Paytm, the payment bank operations will start from May 23.
A Paytm spokesperson said, "We are in process of launching Paytm Payments Bank on 23rd May. We recently received approval from the RBI for Renu Satti to be the CEO." Satti is currently the vice-president, business, at Paytm.
Satti's elevation as Paytm Payment Bank's CEO also puts a question mark on Shinjini Kumar's role. Kumar, who was a director at consultancy firm PwC, was hired by Paytm last year to lead the payment bank's operation.
Paytm did not comment on Shinjini's role in the company.
Paytm is the third company from the 11 other applicants to launch payments bank after Airtel and IndiaPost. Mumbai-based Finopay Tech is also likely to launch its operations by next month.
In January, Paytm had said it received the final approvals from the RBI and was planning to start payments bank in one or two months, but the launch was delayed.
In the same month, Bharti Airtel Ltd commenced operations for Airtel Payments Banks, a joint venture between Bharti Airtel Ltd and Kotak Mahindra Bank Ltd.
Paytm said that all active wallet accounts on the payments app will be transferred to the payments bank.
Meanwhile, Paytm also said that, as per the directions of RBI, the company will be transferring its wallet business to the newly incorporated payments bank entity, Paytm Payments Bank Ltd. It also added that customers, who do not wish to transfer their Paytm accounts, can opt out by communicating to the company before May 23 failing which the account will be automatically be transferred to the payment bank.