Paytm held a board meeting on Tuesday to formally approve the launch of the Paytm Payments Bank, which kicked off its banking operations. Sharma will be the non-executive chairman of the board, while Satti will be director on the board. Bhaskar, Lilani and Sundarajan have joined the board as independent directors.
Bhaskar, who has over three decades of work experience at the banking regulator, was heading the central security cell, Department of Banking Supervision and Department of Non-Banking Supervision till recently.Sundararajan has joined Shriram Group as MD of Shriram Capital, the holding company of its financial services businesses. He was also responsible for leading the banking initiative for the group.
Lilani was earlier head of India and China markets for US-based Silicon Valley Bank, and his firm was till recently an investor in Paytm-owner One97 Communications.
The company said ahead of the launch of the bank that it will expand to 31 branches and 3,000 customer service points in the first year. Paytm Payments Bank will get Rs 400 crore in investment in the first two years of operation.
Sharma personally owns 51% stake in the payment bank, as per regulatory requirements, with the remaining stake owned by One97 Communications. Sharma and One97 have together already invested about Rs 220 crore in the payment bank.
The bank will offer an interest of 4% per annum for savings accounts, which is lower than what the other two operational payments banks Airtel and India Post are offering. Airtel is offering interest rates as high as 7.25%, while India Post is offering interest rates between 4.5-5.5%.