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Paytm Aims to Become Largest Digital Bank in the World

paytmThe entire countrymen of India witnessed a massive shock and surprise on 8th November 2016 when Prime Minister Narendra Modi announced the demonetization drive. It was aimed to get rid of the black money circulating in the market and make the entire economy cashless.

The decision of the BJP government to ban the Rupees 500 and Rupees 1000 notes had massive ramifications for the economy of the country. The economy has been on the decline for the past one year with no signs of improvement. Apart from that, the ordinary people had to undergo a lot of hardships and pain that cannot be expressed in words.

On the contrary, some stakeholders have significantly benefitted from the cashless economy drive of PM Modi.

Paytm is one of the very few companies that has significantly benefitted from the move to ban the Rs500 and Rs1,000 notes. The company is now looking forward to opening 500 million digital accounts and working on its way to becoming the largest digital bank in the world.

Paytm is a digital wallet company that offers financial services to people across India. Recently, the company has launched a new subsidiary called Paytm Payment Bank, and it is aimed at people who don’t have access to digital financial services. Arun Jaitley, the Finance Minister of India, was the chief guest during the inauguration of Paytm Payments Bank.

Paytm

Vijay Shekhar Sharma who is the founder of Paytm made the following statement:

Digital Payments‘ was our entry point, we want to become a vertically-integrated financial services company. We are unveiling our money market fund, launching our debit card and we’ll have the capabilities to allow enterprises to open business accounts. We will launch share trading and insurance products very soon. We want to become an internet-age financial services company.

The current government in action, Bharatiya Janata Party, is working hard to make the entire country to opt for the cashless system and embrace the digital economy. Till now, some different digital payment companies have applied for the license to start payment bank, but only a handful of them have received approval from the government. “Paytm Payment Bank” has received the approval and had the support of BJP government for all kinds of deposits and remittance.

The bank has not been authorised to lend money to people at the moment, but Paytm founder has found a solution for that. It is going to introduce the charge cards that will provide loans to people on instalment, and the money can be paid back on a month on month basis.

The Paytm Payment Bank along with other digital entities is going to target market segment that is mostly illiterate and is not digital friendly. There is tremendous potential in this segment, and the only concern is that it might be manipulated by the financial savvy business people.

The government of India and Arun Jaitley are prepared now with robust regulations to protect the people from the digital economy drive. It is hoped they are not going to screw up things like the demonetization drive and GST roll out.

Steven Rudford

Steven Rudford

Hello, my name is Steven Rudford. Welcome to Top10FX.net. Follow my website for the most trustworthy Forex broker reviews and last minute financial trading news.


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