Paytm Payments Bank focuses on transaction volumes

Paytm Payments Bank, which turned profitable in the second year of its operation, plans to focus on corporate salary accounts and direct money transfers in the current financial year to augment transaction volumes.

“Irrespective of whether customers have bank account with us or not, they will be able to send money to any bank account holder through our business correspondents (BCs),” said Satish Kumar Gupta, MD and CEO, Paytm Payments Bank. The bank will charge a fee for the transaction from the sender. The bank currently has 200,000 BCs across 550 districts in the country. Gupta said once all BCs are e-KYC enabled, it will drive up volumes and add to the profitability of the bank.

As per RBI guidelines, payments banks are not allowed to engage in lending activities and at least 75% of deposits they receive is to be invested in government securities.