Alibaba backed digital payments and commerce platform Paytm is transferring its wallet business to its newly created payments bank.
This is a mandatory step being followed by the company to fulfil the rules laid out by the Reserve Bank of India.
Paytm , which is run by One 97 Communications, has two key businesses -
- payments business and
- commerce marketplace.
Paytm was founded by Vijay Shekhar Sharma
It has got an in-principle approval for the country’s central bank for launching the payment bank under the name of Sharma.
Commerce business is now associated with another entity Paytm e-commerce Private Limited.
Paytm allows fund transfer to bank accounts at 1% transaction fee.
Transfer will be complete once payment bank license is obtained.
Paytm- Largest shareholder: Alibaba
- Holding company: One97 Communications
- 40% stake in parent company.
- Majority stake in payments bank: 51% (owned by Vijay Shekhar Sharma).
- Airtel launched the first payments bank in India, in Rajasthan.
