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Paytm Payments Bank

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Paytm Payments Bank ( PPBL ) was an Indian payments bank , founded in 2017 and headquartered in Noida . In the same year, it received the license to run a payments bank from the Reserve Bank of India and was launched in November 2017. In 2021, the bank received a scheduled bank status from the RBI.

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24-495: Vijay Shekhar Sharma holds 51 percent in the entity with One97 Communications holding 49 percent. Vijay Shekhar Sharma is the promoter of Paytm Payments Bank, and One97 Communications Limited is not categorized as one of its promoters. He resigned as part-time non-executive chairman and board member of Paytm Payments Bank, citing regulatory challenges with the Reserve Bank of India. On 31 January 2024, Paytm Payments Bank

48-541: A band of ₹2,080-2,150, valuing it at ₹1.39 trillion. The company's IPO was subscribed 18% on the first day, having received bids for 8.742 million shares against the total issue size of 48.4 million shares. Its IPO was subscribed 48% on the second day and it was fully subscribed on the final day of the issue. However, its shares fell 13% and 27% respectively on the days succeeding its listing and has continued to slide sparking criticism on its valuation methodologies, inviting regulatory scrutiny. According to RedSeer, it has

72-404: A fine of ₹1 crore on the bank for violating laws pertaining to payments and settlement. On 11 March 2022, RBI prohibited PPBL from onboarding new customers owing to "certain material supervisory concerns observed in the bank". In continuation of these actions, and after the validation report of the external auditors revealed persistent non-compliance and continued material supervisory concerns in

96-581: A partnership with MasterCard for the issuance of virtual and physical debit cards in April 2020. In January 2021, it tied up with Suryoday Small Finance Bank to offer fixed deposit services to its account holders. Since June 2021, it is not providing new fixed deposit creation with Suryodaya Bank. Paytm Payments Bank reported a ₹19 crore profit for the financial year 2018-2019, making it the first payments bank in India to become profitable. The company registered

120-628: A profit of ₹29.8 crore for the financial year 2020. In June 2018, the Reserve Bank of India barred Paytm Payment Bank from opening new customer accounts, following an audit by the Reserve Bank of India , which made some observations about the process the company follows in acquiring new customers and its adherence to KYC norms. However, in January 2019, it received approval from the RBI to resume on-boarding new customers. In October 2021, RBI imposed

144-513: A valuation of $ 19 billion, making it India's largest initial public offering at that time. Sharma is also an angel investor who has supported tech startups. Sharma joined the board of management at Netaji Subhas University of Technology in Delhi for three years. In 2024, Sharma stepped down from his role as part-time non-executive chairman and board member of Paytm Payments Bank . This decision followed regulatory challenges encountered by

168-507: Is an Indian technology entrepreneur, multimillionaire and business magnate. He is the founder and chief executive officer of One97 Communications founded in 1997 and its consumer brand Paytm which he started in 2010. In January 2022, the ICANN -supported Universal Acceptance Steering Group appointed him as UA Ambassador in India. As of September 2022, he had a net worth of US$ 1.1 billion according to Forbes . Vijay Shekhar Sharma

192-600: The Banking Regulation Act, 1949 . According to the RBI, this decision aims to address certain irregularities in Paytm Payments Bank's banking services, ensuring compliance with regulatory norms. In 2015, Paytm Payments Bank Limited received in-principle approval from the Reserve Bank of India to set up a payments bank and was formally inaugurated on November 28, 2017. In the financial year 2020,

216-747: The Deloitte Technology Fast 500 Asia Pacific list in 2012. The company was awarded the VCCircle Annual Awards 2013 for the best PE/VC-backed Media & Communication Company. In March 2014, One97 was announced as the Most Innovative Company of the Year 2014 at the Business Standard 's Awards. In July 2015, it won NDTV 's Disruptive Digital Innovator Award. The company was ranked #309 in

240-680: The Best Digital Innovation category for its 'TalktoMe' product at IAMAI 's Digital Awards by the Internet and Mobile Association of India . It won Company of the Year at ET Now - IndiaMART Leaders of Tomorrow Awards 2010. In May 2011, One97's product Talk2Me was awarded the Best Innovative VAS Product at the ET Telecom Awards by The Economic Times . One97 Communications was ranked #493 in

264-789: The FY 2019-20. Its overall expenses were reduced by 20% in 2019-20 to Rs 5,861 crore compared to Rs 7,254 crore in 2019-18. Its revenue also declined 1% to Rs 3,350 crore in FY20. In August 2009, One97 Communications was awarded the Emerging Company of The Year at the 10th Annual Voice&Data Award 2009 for its contribution to the VAS space. In the same year, it was also awarded the Deloitte Technology Fast50 India award in 2009. In December 2010, One97 Communications won

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288-653: The RBI banned it from accepting deposits from 15 March 2024, it had to quickly migrate the handle to another company with a valid banking license. The handle was transferred to Yes Bank one day before the deadline to ensure existing users and merchants did not face any issues with their UPI transactions and AutoPay mandates. Paytm Payments Bank offers savings and current accounts with a debit card , facilitating fast and easy payments. Paytm Payments Bank has issued seven million Visa debit cards through its platform in FY'21. In January 2018, Paytm Payments Bank partnered with IndusInd Bank to offer fixed deposits. It entered into

312-592: The bank facilitated more than 485 crore transactions worth ₹4.6 lakh crore. It processed over 778 million UPI transactions amounting to ₹89,388 crore in June 2022 and continues to be India’s biggest UPI beneficiary bank with over 1,370 million digital transactions in June 2022. In March 2021, the bank received approval from the Securities and Exchange Board of India for issuing payment mandates for initial public offerings (IPOs) through its "@paytm" UPI handle. After

336-561: The bank with the Reserve Bank of India . He is married to Mridula Parashar Sharma and they have a child. He cites Alibaba's founder Jack Ma and Masayoshi Son of Softbank , as his inspirations. In February 2022, Sharma was arrested by Delhi police for hitting his car into the car of a police officer. He was later released on bail. Sharma has been named as the UN Environment 's 'Patron for Clean Air', where he helps to drive environmental action and awareness and advocate for

360-490: The bank, RBI ordered the bank to stop onboarding customers and not to accept deposits engaging in credit transactions, or making top-ups in customers accounts after 29 February 2024. The prohibition order also includes not accepting additional deposits in prepaid instruments, wallets, FASTags , or National Common Mobility Cards . The deadline was extended to 15 March 2024 by a press release a week later. Vijay Shekhar Sharma Vijay Shekhar Sharma (born 7 June 1978)

384-913: The company became publicly listed after the largest ever initial public offering (IPO) in India's history. It was listed on Indian stock exchanges on 8 November 2021. One97 Communications Limited was founded in 2000 by Vijay Shekhar Sharma in New Delhi . The company is headquartered in Noida , India. It launched Paytm in 2009 as a digital payments platform to facilitate cashless payments. It owns various businesses and subsidiaries – Paytm Payments Bank, Paytm Payments Gateway, Paytm Payout, Paytm Money, Paytm Insider, Paytm Insurance, Paytm Postpaid, Paytm for Business, Paytm Credit Cards, and Paytm First Games. In October 2011, One97 Communications received funding of $ 10 million from Sapphire Ventures . In January 2015, Ant Financial Services Group picked 25% stake in

408-491: The company secured $ 1 billion in a Series G funding led by T Rowe Price and existing investors Ant Financial and SoftBank Vision Fund . Discovery Capital also participated in the round. Paytm raised Rs 9,000 crore ($ 1.4 billion) from SoftBank. In December 2012, the company acquired MobiVite, a mobile marketing platform followed by the acquisition of Plustx, a cross-messaging platform in August 2013. One97 Communications

432-720: The company. In March 2015, Ratan Tata made a personal investment in One97 Communications's Paytm and joined as an adviser of the company. It received funding of $ 60 million from MediaTek 's investment funds Mountain Capital, which made the company's valuation at $ 4.8 billion in August 2016. In May 2017, the company raised $ 1.4 billion from Japan's SoftBank Group , which made its valuation jumped to over $ 8 billion. Paytm raised $ 300 million from Warren Buffett’s Berkshire Hathaway in September 2018. In November 2019,

456-561: The goals of United Nations Environment 's global Breathe Life campaign. One97 Communications One97 Communications Ltd is an Indian multinational technology company, headquartered in Noida , Uttar Pradesh , India . It was founded in 2000 by Vijay Shekhar Sharma. Through its subsidiaries and businesses, the company offers digital payment and financial services to consumers and merchants in India. It also provides mobile advertising, marketing and payments for merchants. In 2021,

480-421: The largest payments platform in India with a gross merchant value of Rs 4,033 billion in the financial year 2021. According to its annual 2021 report, One97's revenue from operations dropped 14% to Rs 2,802 crore for FY 2021. However, losses narrowed to Rs 1,701 crore during this year, compared to Rs 2,942 crore loss reported in the fiscal year 2020. One97 Communications reduced losses by 28% to Rs 2,833 crore in

504-447: The website indiasite.net, and sold it two years later for US$ 1 million. Three years later, in 2000, he started One97 Communications which offered mobile content including news, cricket scores, ringtones, jokes and exam results. One97 Communications Limited is the parent company of Paytm , a digital payments and financial services company that was launched by Sharma in 2010. In November 2021, Paytm went public raising $ 2.5 billion at

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528-556: Was born in Aligarh , Uttar Pradesh on 7 June 1978, the third of the four children of Sulom Prakash Sharma, a school teacher, and Asha Sharma, a homemaker. He did his schooling from Harduaganj, a small town near Aligarh. He enrolled in college at the age of 15 and graduated with a B.Tech degree from the Delhi College of Engineering (now Delhi Technological University ) at 19 years old In 1997, while in college, he started

552-484: Was scheduled to launch its IPO In November 2010. However, it shelved the listing plans last moment, citing volatile market conditions. On 16 July 2021, the company filed draft prospectus for its IPO of up to ₹16,600 crore and various news outlets reported it to be India's largest Initial public offering ever. It is listed on National Stock Exchange of India and Bombay Stock Exchange since November 2021. The company's initial share sale aimed to raise ₹18,300 crore at

576-413: Was stopped from onboarding new customers onto their platform, due to persistent non-compliance and continued material supervisory concerns within the bank. It was also told to not accept deposits or credit transactions or top ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards after 15 March 2024. The Reserve Bank of India has taken this step under Section 35A of

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