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&#39;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)

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

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)

Paytm launches payments bank

UK-based online money transfer firm Azimo is turning the process of sending remittances on its head by allowing mobile phone and computer users to send cash to any mobile phone number via text message, leaving it up to the recipient to claim the money.

The new feature, which was introduced on Tuesday, eliminates the need for senders to remember the account details or bank IBAN numbers in order to transfer money to recipients, a stumbling block that has complicated existing money transfers.

Indian mobile ecommerce site Paytm also operates a similar feature. Paytm is owned by One97 Communications and has proved to be hugely popular since the country&#39;s government demonitized all old 500 ($7.70) and 1000 rupee banknotes in November.

Azimo, a UK-regulated firm, allows phone or computer users in 28 Eurozone countries to transfer money to around 190 countries. It is mainly used by immigrants to send money home to relatives in emerging markets in Central and Eastern Europe, West Africa, South Asia, the Philippines and Latin America.

Azimo&rsquo;s &quot;request&quot;&nbsp;function brings recipients into the process for the first time and is made possible by the recent proliferation of smartphones in emerging markets, something not possible when the London-based company launched in 2012.

&quot;People on the receiving end in emerging markets now have smartphones, so they can be in charge. They can have more control in requesting the cash, receiving the cash,&quot; Michael Kent, the company&#39;s co-founder and chief executive, told Reuters in a phone interview.

&quot;This is built for the way customers on both sides of a remittance work today.&quot;

Azimo users can choose one of their phone contacts to send money. Recipients receive a text message with a link to download the Azimo app and claim the money. They can then link the app to a financial account or go to a local kiosk to claim their money.

The company also is introducing the money request feature in the United States and Canada and will roll the service out across globally in the course of the year. Azimo says it has more than 1 million senders and receivers using its apps.

It competes with other online remittance firms including WorldRemit and CurrencyFair, as well as kiosk-base money transfer giants such as Western Union and MoneyGram, which also now offer online money transfers services.

The market has heated up in recent years as US&nbsp;web-based payments player PayPal acquired remittance app Xoom and Ant Financial, an affiliate of Chinese ecommerce giant Alibaba has sought to buy MoneyGram, but faces US&nbsp;regulatory challenges over national security concerns.

Azimo has raised around $47 million (38 million pounds) in venture funding over the past five years. Kent said the company was fully funded until at least 2018.

(1 British pound = $1.2462)

($1 = 64.9600 Indian rupees)

(Reuters)

Azimo users choose a phone contact to send money to. Recipients download the app then pick up the cash at a kiosk, or link it to an account

UK-based online money transfer firm Azimo is turning the process of sending remittances on its head by allowing mobile phone and computer users to send cash to any mobile phone number via text message, leaving it up to the recipient to claim the money. The new feature, which was introduced on Tuesday, eliminates the need for senders to remember the account details or bank IBAN numbers in order to transfer money to recipients, a stumbling block that has complicated existing money transfers. Indian mobile ecommerce site Paytm also operates a similar feature. Paytm is owned by One97 Communications and has proved to be hugely popular since the country's government demonitized all old 500 ($7.70) and 1000 rupee banknotes in November. Azimo, a UK-regulated firm, allows phone or computer users in 28 Eurozone countries to transfer money to around 190 countries. It is mainly used by immigrants to send money home to relatives in emerging markets in Central and Eastern Europe, West Africa, South Asia, the Philippines and Latin America. Azimo’s "request" function brings recipients into the process for the first time and is made possible by the recent proliferation of smartphones in emerging markets, something not possible when the London-based company launched in 2012. "People on the receiving end in emerging markets now have smartphones, so they can be in charge. They can have more control in requesting the cash, receiving the cash," Michael Kent, the company's co-founder and chief executive, told Reuters in a phone interview. "This is built for the way customers on both sides of a remittance work today." Azimo users can choose one of their phone contacts to send money. Recipients receive a text message with a link to download the Azimo app and claim the money. They can then link the app to a financial account or go to a local kiosk to claim their money. The company also is introducing the money request feature in the United States and Canada and will roll the service out across globally in the course of the year. Azimo says it has more than 1 million senders and receivers using its apps. It competes with other online remittance firms including WorldRemit and CurrencyFair, as well as kiosk-base money transfer giants such as Western Union and MoneyGram, which also now offer online money transfers services. The market has heated up in recent years as US web-based payments player PayPal acquired remittance app Xoom and Ant Financial, an affiliate of Chinese ecommerce giant Alibaba has sought to buy MoneyGram, but faces US regulatory challenges over national security concerns. Azimo has raised around $47 million (38 million pounds) in venture funding over the past five years. Kent said the company was fully funded until at least 2018. (1 British pound = $1.2462) ($1 = 64.9600 Indian rupees) (Reuters)

Need cash? Azimo lets recipients sort out money transfer headaches

The Public Accounts Committee (PAC) of Parliament can call Prime Minister Narendra Modi on the issue of demonetisation if it is not satisfied with the answers given by top finance ministry officials and the RBI Governor Urjit Patel, to whom a detailed questionnaire has been sent.

A PAC meeting on this issue has been called on January 20th, in which the Reserve Bank of Indian (RBI) Governor Urjit Patel, Finance Secretary Ashok Lavasa and Economic Affairs Secretary Shaktikanta Das will be present.

&quot;We have not yet received answers for the questions we have sent to them. They will reply few days before the January 20th meeting. Their replies will be discussed in detail,&quot; PAC Chairman and senior Congress leader K V Thomas told PTI.

Asked if the PAC would call the Prime Minister if replies were not satisfactory, he said: &quot;The committee has all right to 
call anybody involved in the matter. But that will depend on the outcome of the January 20th meeting. We can call PM on demonetisation issue if members unanimously decide.&quot;

In a meeting with the PM after demonetisation announcement made on November 8, Thomas said, &quot;I had met him and he said that the situation will be normal after 50 days by December-end. But it does not looks like&quot;.

So, PAC decided to call the top officials involved in the decision making process this month, he said, adding that the demonetisation has impacted the country&#39;s economy.

&quot;The PM is misleading the country to satisfy his ego. He is trying to justify his wrong decisions. He has done in a callous manner by introducing Rs 2,000 notes,&quot; he said.

&quot;In a country where there is a call drop problem and telecom facilities are not smooth, how can PM expect e-transactions would take place on mobiles. Do we have sufficient infrastructure?&quot; he questioned.

Asked what kind of questionnaire been sent to the RBI chief and top finance ministry officials, Thomas said that the PAC has raised questions on all aspects of demonetisation.

Among key questions sought are:&nbsp;Who were involved in the decision-making, how much money has come back into banks after demonetisation, is there a law that can restrict people&#39;s access their money, how much money has been pumped back into the system, if black money issue has been addressed and the impact on the economy and poor.

The PAC, which scrutinises the reports of the Comptroller and Auditor General (CAG), takes suo motu note of the important matters.

(PTI)

If unsatisfied with answers given by RBI Governor Urjit Patel to a detailed questionnaire on demonetisation, Modi himself will be called on

The Public Accounts Committee (PAC) of Parliament can call Prime Minister Narendra Modi on the issue of demonetisation if it is not satisfied with the answers given by top finance ministry officials and the RBI Governor Urjit Patel, to whom a detailed questionnaire has been sent. A PAC meeting on this issue has been called on January 20th, in which the Reserve Bank of Indian (RBI) Governor Urjit Patel, Finance Secretary Ashok Lavasa and Economic Affairs Secretary Shaktikanta Das will be present. "We have not yet received answers for the questions we have sent to them. They will reply few days before the January 20th meeting. Their replies will be discussed in detail," PAC Chairman and senior Congress leader K V Thomas told PTI. Asked if the PAC would call the Prime Minister if replies were not satisfactory, he said: "The committee has all right to call anybody involved in the matter. But that will depend on the outcome of the January 20th meeting. We can call PM on demonetisation issue if members unanimously decide." In a meeting with the PM after demonetisation announcement made on November 8, Thomas said, "I had met him and he said that the situation will be normal after 50 days by December-end. But it does not looks like". So, PAC decided to call the top officials involved in the decision making process this month, he said, adding that the demonetisation has impacted the country's economy. "The PM is misleading the country to satisfy his ego. He is trying to justify his wrong decisions. He has done in a callous manner by introducing Rs 2,000 notes," he said. "In a country where there is a call drop problem and telecom facilities are not smooth, how can PM expect e-transactions would take place on mobiles. Do we have sufficient infrastructure?" he questioned. Asked what kind of questionnaire been sent to the RBI chief and top finance ministry officials, Thomas said that the PAC has raised questions on all aspects of demonetisation. Among key questions sought are: Who were involved in the decision-making, how much money has come back into banks after demonetisation, is there a law that can restrict people's access their money, how much money has been pumped back into the system, if black money issue has been addressed and the impact on the economy and poor. The PAC, which scrutinises the reports of the Comptroller and Auditor General (CAG), takes suo motu note of the important matters. (PTI)

Demonetisation: Parliamentary committee may summon Indian PM Narendra Modi

The Reserve Bank of India&nbsp;has modified&nbsp;old currency deposit rules once again,&nbsp;Know-Your-Customer (KYC) compliant account holders can now deposit over Rs 5,000 without any questions asked.

RBI had said on Monday old notes exceeding Rs 5,000 can be deposited only once per account till December 30. It said that the depositor will also have to give an explanation as to why the old notes were not deposited earlier, according to PTI.&nbsp;

RBI added that the explanation should be kept on record to facilitate an audit trail at a later stage.&nbsp;

Further, RBI said that even if deposits are below Rs 5,000, if the cumulative deposit exceeds Rs 5,000, &quot;they may be subject to the procedure to be followed in case of tenders above Rs 5,000&quot;.&nbsp;

RBI also said that deposits above Rs 5,000 can be credited only into KYC-compliant accounts and &quot;if the accounts are not KYC compliant credits may be restricted up to Rs 50,000 subject to the conditions governing the conduct of such accounts&quot;, PTI reports.

However, RBI has said that the restrictions shall not apply to deposits under the Pradhan Mantri Garib Kalyan scheme, 2016.

&quot;It has been decided to place certain restrictions on deposits of specified bank notes into bank accounts while encouraging the deposits of the same under the Taxation and Investment Regime for the Pradhan Mantri Garib Kalyan Yojana, 2016,&quot; RBI said in a notification.

Under the scheme, black money holders can deposit unaccounted cash in an account which will be subject to 50 per cent tax, which breaks down into 30 per cent&nbsp;tax, 33 per cent&nbsp;surcharge and 10 per cent&nbsp;penalty, and 4-year interest-free lock-in for the remaining 25 per cent of the amount.

(WION with inputs from PTI)

&nbsp;

Know-Your-Customer (KYC) compliant account holders can now deposit over Rs 5000 without any questions asked

The Reserve Bank of India has modified old currency deposit rules once again, Know-Your-Customer (KYC) compliant account holders can now deposit over Rs 5,000 without any questions asked. RBI had said on Monday old notes exceeding Rs 5,000 can be deposited only once per account till December 30. It said that the depositor will also have to give an explanation as to why the old notes were not deposited earlier, according to PTI. RBI added that the explanation should be kept on record to facilitate an audit trail at a later stage. Further, RBI said that even if deposits are below Rs 5,000, if the cumulative deposit exceeds Rs 5,000, "they may be subject to the procedure to be followed in case of tenders above Rs 5,000". RBI also said that deposits above Rs 5,000 can be credited only into KYC-compliant accounts and "if the accounts are not KYC compliant credits may be restricted up to Rs 50,000 subject to the conditions governing the conduct of such accounts", PTI reports. However, RBI has said that the restrictions shall not apply to deposits under the Pradhan Mantri Garib Kalyan scheme, 2016. "It has been decided to place certain restrictions on deposits of specified bank notes into bank accounts while encouraging the deposits of the same under the Taxation and Investment Regime for the Pradhan Mantri Garib Kalyan Yojana, 2016," RBI said in a notification. Under the scheme, black money holders can deposit unaccounted cash in an account which will be subject to 50 per cent tax, which breaks down into 30 per cent tax, 33 per cent surcharge and 10 per cent penalty, and 4-year interest-free lock-in for the remaining 25 per cent of the amount. (WION with inputs from PTI)

Demonetisation: Reserve Bank of India changes old currency deposit rules for 60th time