Paytm launches payments bank

One of the accused allegedly bought high-end phones within a span of seven days. In photo: The logo of Paytm -- a $500 billion company. (Image courtesy: Flickr) Photograph:( Others )

Reuters Mumbai, Maharashtra, India May 23, 2017, 03.04 AM (IST)

Indian digital payments firm Paytm launched a niche payments bank on Tuesday, aiming to acquire 500 million customers in the next three years, the company said in a statement.

Paytm, which runs India's biggest electronic wallet, said it will offer an interest rate of 4 per cent per annum on deposits.

The Paytm Payments Bank aims to open 31 branches and 3,000 customer service points in its first year of operations, the company said.

A payments bank is an institution that can take deposits and remittances but cannot lend.

(Reuters)

Story highlights

The Paytm Payments Bank aims to open 31 branches and 3,000 customer service points in its first year ||They aim to acquire 500 million customers in the next three years ||They said it will offer an interest rate of 4% per annum on deposits, but cannot lend money