Govt. Entrusts Paytm Payments Bank to Lead Digital Payments in India; Sets Target Higher Than HDFC, ICICI & PNB

Paytm Payments Bank Limited (PPB), India’s largest payments bank has received a target of 501.16 digital transactions from the Ministry of Electronics and Information Technology (MeitY) for FY ’20. To promote digital transactions in India, MeitY sets the target for all banks and closely monitors the progress on it. This target is significant as it is much higher than the target set for major banks like HDFC, ICICI and Punjab National Bank. It reaffirms Paytm as the leader of digital payments in the country.

In FY ’19, PPB over achieved its target of 354 crore digital transactions and registered 393 crore digital transactions to emerge as the second-largest player in the entire banking industry in India. Both in terms of mobile banking and UPI transactions, PPB is already a leader in India with a market share of ~19% and 32% respectively. Nearly a third of the total mobile banking transactions in India are powered by Paytm Payments Bank and it processes over Rs 3 Lakh Crore worth of digital transactions on an annualized basis.

On the backdrop of such accelerating growth, PPB has been assigned a higher target for FY ’20. It is only behind State Bank of India, which has the highest target for digital transactions. Only five other banks have received a target of more than 100 crore transactions, which includes HDFC, ICICI, Axis Bank, Punjab National Bank and Union Bank of India.

PPB is India’s first Payments Bank to have turned profitable within its second year of operation, reporting a profit of Rs 19 Crores for the FY ’19. As of April 2019, PPB has more than INR 500 crore deposits in our savings account, which makes it the largest payments bank in India in terms of deposits. The bank is aiming to introduce more products and features to increase the monthly processing of savings account payments from INR 24,000 crores to INR 40,000 crores in FY ’20.