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Paytm is all set to launch its digital payments bank from May 23
The company has received a final nod from the Reserve Bank of India (RBI).

"We are in process of launching Paytm Payments Bank on May 23, as we recently received an approval from the RBI for Renu Satti to be the CEO," a company spokesperson said.

Sati is replacing Shinjini Kumar, a former RBI executive and PwC consultant.

As per advertisement put out by the company, users will be moved to Paytm's Payments Bank. The wallet business of Paytm is being transferred to Paytm Payments Bank Ltd in order to meet the RBI guidelines. The company also clarified that it is not going to charge any money from the customers to transfer money from wallet to payments bank account.

The RBI has already approved payment bank licenses for 11 companies out of which Airtel was the first one to start the country's first payments bank from Rajasthan. Another payments bank was launched by India Post.

The payments banks will be allowed to accept deposits of up to Rs 1 lakh per account from individuals and small businesses, as per rules of RBI.

Surprisingly, a company that is seen to be making huge profits is actually making losses. For the financial year ended March 2016, Paytm posted a loss of Rs 1,548 crore.

Paytm was scheduled to begin the payments bank operations in last year but failed to do so till now because of lack of regulatory requirements.

In a statement issued by the company, it said, "the company will be transferring its wallet business to the newly incorporated Paytm Banks entity."

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