India’s ace mobile commerce company—Paytm which is slated to get payments bank licence, on Monday, roped in IT services giant Wipro to develop core banking solution (CBS) for its upcoming payments bank.
According to reports, Wipro will be implementing the CBS for Paytm and other key programmes like anti-money laundering solution and the regulatory reporting solution. In addition to this, Wipro also manage data centers for the Paytm’s Payments Bank to ensure its smooth functioning.
Founder of One97 Communications (parent company of Paytm) Vijay Shekhar Sharma last year had hinted that the company would start a Payment bank.
Shinjini Kumar, who has been pitched to be the CEO of Paytm Payments Bank said, “We are elated announce our partnership with Wipro which would provide us with cutting edge technological solutions to strengthen our upcoming initiative.
It may be mentioned that Payments banks have certain limitation as compared to traditional banks as the former can accept demand deposits and savings bank deposits from their customers and small businesses, only up to a maximum of Rs 1 lakh per account. Importantly, NRIs cannot bank with these ventures, and they do not have authority to disburse loans. The payment banks can sell mutual funds, insurance and pension products as well as facilitate payments and remittances with a focus on the unbanked segment like migrant workers. While Payments banks cannot offer credit cards, they are allowed to give users ATM or Debit cards.