Indian Digital payments firm PayTM, today announced its launch the first phase of its “Payments Bank” by offering accounts on an invite-only basis to mostly its north India customers. The first physical branch is in Noida. It is started with a public notice in the newspapers and a blogpost by the Company.
Paytm, backed by Asian technology giants SoftBank Corp and Alibaba Group Holding, is planning to double its customer base to 500 million in the next three years.
The e-wallet company which was started its operations during Diwali last year, plans to invest around Rs 400 crore to build its banking network over the next two years.
In its first year, the bank plans to expand to 31 brick-and-mortar branches and add 3,000 customers. By 2020, it plans to add 500 million customers.
In its second launch phase, Paytm will launch the bank in other metro cities. The payments bank has already received an investment of Rs 220 crore from its parent company One97 Communications.
The RBI had awarded in-principle approval to founder Vijay Shekhar Sharma in 2015 to set up a payments bank along with 10 others. So far, apart from Paytm, only Airtel has gotten its payments bank running.