Paytm Payments Bank Ltd (PPBL) has received approval from the Securities and Exchange Board of India (SEBI) for payment mandate of IPO applications through its unified payments interface (UPI) handle.
According to a statement, Paytm Payments Bank has also entered into a partnership with Paytm Money to enable payment mandates for IPO applications.
The Bank said these steps will benefit millions of users to invest in capital markets through various brokerage platforms using their Paytm UPI handle.
According to PPBL, it is the largest UPI beneficiary bank and has one of the best technology infrastructures for processing UPI transactions. It also stated that as per the latest NPCI report, it registers the lowest technical decline rate of 0.02 percent as compared to all UPI remitter banks, and 0.04 percent as compared to all UPI beneficiary banks.
Satish Gupta, MD and CEO, Paytm Payments Bank Ltd said, “It has been our constant endeavour to weave the convenience of seamless digital payments to all aspects of the lives of our users. By enabling @paytm UPI to apply for IPO we are giving millions of investors the ease of seamless, secure, and rapid payments to help enhance their financial portfolio.”
Paytm Money aims to bring in more direct equity investors in an underpenetrated segment. It aims to open over 3.5 lakh Demat accounts by year-end, and expects 60 percent of users to be from small cities. It is focused on wealth creation with investments in Initial Public Offers (IPOs) through the digital route.
Besides Paytm Money, the UPI handle will soon be activated across all brokerage platforms.
According to Paytm Payments Bank, by investing in IPOs, investors get an edge as they are part of the company’s business journey right from the start. According to this bank, during FY21, there were around 24 IPOs that raised Rs 48,493 crore.