Airtel overtakes Paytm, pilots first payment bank

Telecom giants Bharti Airtel is all set to overtake online marketplace Paytm by launching India’s first payment bank. The company will be launching the banking service first in Rajasthan as a pilot project, post which the service will be launched across the nation.

The move has come at a crucial time as the government has announced the demonetization of 500 and 1000 rupee notes. In addition, Paytm has just launched its payments bank during the festive season.

Initially, customers across Rajasthan can open bank accounts at 10,000 Airtel retail outlets, which is likely to be doubled over the course of time. The company said that it would offer a range of basic, convenient banking services and will expand its merchant network in Rajasthan to 100,000 by the end of the year. The company will leverage its extensive network of over 1.5 million retail outlets, with deep penetration in rural areas. The Reserve Bank of India had granted payments bank license to Airtel on April 11.

“Airtel Payments Bank will play an important role in taking banking services to the last mile in a quick and efficient manner and benefit millions of unbanked citizens of this country. With this pilot, we have taken a big step towards the launch of our banking services and will be testing our operational readiness for full-scale launch across India,” Shashi Arora, MD & CEO, Airtel Payments Bank, said in a statement.