One97 Communications, which owns digital payments firm Paytm, is set to merge its digital wallet service with its upcoming payments bank.
In August, the company incorporated the Paytm Payments Bank and Paytm E-commerce as separate entities for its e-commerce and banking services, respectively.
“As per the directions of the Reserve Bank of India, the company would transfer its wallet business to the newly incorporated Paytm Payments Bank Ltd. after receipt of necessary approvals,” Paytm said.
Paytm secured in-principle nod for a payments bank licence from the Reserve Bank of India (RBI) in August 2015.
Paytm founder Vijay Shekhar Sharma will hold a 51% stake in the payment bank, while the remaining will be owned by One97 Communications.
Accounts and balance of existing Paytm users will be automatically switched to the payments bank unless the customer objects to the decision. Customers can also opt out of the process if they choose to do so.