One97 Communications, the parent company of payments platform Paytm, has announced that it plans to merge the Paytm Wallet business with its newly-incorporated Paytm Payments Bank division.
Paytm’s parent company, headed by Vijay Shekhar Sharma, is waiting for the requisite RBI approvals to start operations of the Paytm Payments Bank. While ownership of the Paytm Wallet business is transferred to Paytm Payments Bank, One97 Communications will remain the owner of the e-commerce platform of the company.
Vijay Shekhar Sharma, the Chief Executive Officer of One97 Communications, was granted the in-principle payments bank license by the RBI earlier this year. Sharma reportedly owns 51 percent of Paytm Payments Bank, while One97 Communications has the remaining 49 percent stake.
Those who do not want to be switched to the Paytm payments bank can opt out of the process via email or from the company’s desktop website, the statement says.
However, Paytm users whose wallet have not been used in six months, or have zero balance will not have their accounts transferred to the payments bank entity. They will have to log into their account to give permission to make the transfer.
Paytm has seen tremendous growth over the last month after the demonetisation of the old Rs. 500 and Rs. 1000 notes by Prime Minister Narendra Modi. The company’s user base has crossed 155 million and half a million people are joining the platform per day since cash became hard to come by. Paytm has also been adding 20,000 merchants a day to its platform since demonetisation.