Paytm Payments Bank to enable International Remittance
Paytm Payments Bank (PPB) is planning to expand into facilitating international and domestic remittances. The bank’s CEO Satish Kumar Gupta said that, if approved the New Umbrella Entity (NUE) proposed by PPB and other investors will change the pace of digital payments in the country.
Paytm’s Financial Standing
Recently, PPB became the largest enabler of digital transactions in India with 970 Million transactions in March, 2021. Speaking to the Times of India, the Bank’s CEO said, PPB’s digital transactions were diversified across many platforms including UPI, digital wallet, FASTag and peer to peer transfers.
He also added that the bank has been reporting a profit since year 2018-19. This would help PPB to convert into Small Finance Bank (SFB). Although RBI had said that it will relax its rules to allow payments banks to convert into SFB’s after three profitable years, it is yet to notify the relaxed norms.
RBI’s decision to increase the end-of-day balance limits for payments bank to Rs. 2 Lac will benefit small merchants who use PPB’s cash management services.
He further mentioned that, “For the coming year, we have received approval for facilitating inward remittance from foreign countries. In addition to this, we are also growing our domestic remittance”.
What is Remittance?
A bank remittance refers to funds that are sent or transferred to another entity as payment for services or a product. The word is derived from the term “remit” which means “to send back.” Remittances are sent via an electronic payment system, wire transfer, mail, draft, or check.
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