Paytm has announced its decision to merge wallet service with payments bank after receipt of necessary RBI approvals.
VSS had earlier received payments bank licence and will hold the majority share, i.e. 51% in the payments bank (and 49% owned by One97).
“As per the directions of the Reserve Bank of India (RBI), the company would transfer its wallet business to the newly incorporated Paytm Payments Bank Ltd after receipt of necessary approvals,”
This also implies that Paytm is splitting its wallet business and ecommerce business (which was hived off as a separate entity in August, 2016).
Like we said earlier, Paytm should just exit ecommerce business and sell off to Alibaba.