Page 12 - Banking Finance April 2021

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Axis bank board grants With this feat, Paytm, which has over payments and small savings schemes
150 million monthly active users, has are there in these transactions.
reclassification of united consolidated its leadership position as These types of transactions, until now,

India insurance as public the largest digital enabler promoting were mostly a preserve of the Public
shareholder all the methods of payment including Sector Banks (PSBs). According to the
wallet, cards, UPI and net-banking. source, only a few private players like
Axis Bank stated that its board has The platform goes on to lead with the
approved the proposal to reclassify highest market share in terms of Axis Bank, HDFC Bank and J&K Bank
United India Insurance Company Ltd offline merchant payments with 15% were allowed to conduct them.
(UIICL) as a public shareholder month-on-month growth. According to the Finance Ministry, the
category investor in the bank from government has conveyed its decision to
promoter category. The request to "We are humbled by the trust India has RBI, and now, since the embargo is
reclassify the insurer to public category shown in us and made Paytm their lifted, there is no bar on RBI to authorise
from promoter category was made by preferred digital payments and private banks (in addition to the PSBs) for
UIICL, one of the promoters of Axis financial service provider", said conducting government businesses,
Narendra Yadav, Vice President of
Bank through a letter. including government agency business.
Paytm in a statement. "We have
Axis Bank said, "The said letter was consistently maintained industry- The Finance Ministry said in a release,
placed for consideration of the board leading market share and growing at "This step is expected to further
at its meeting held today… The board an impressive rate", he added. enhance customer convenience, spur
at the said meeting has considered and competition and higher efficiency in
approved the said request received Centre lifts embargo on the standards of customer services."
from UIICL to reclassify it to public
category from promoter category." private banks for govt. PNB Housing Finance
business enters into co-lending
Paytm claims top spot in Keeping in mind the move that can

digital payments with 1.2 potentially make bank privatisation partnership with Yes Bank
plan more attractive for the investors, for retail loans
billion monthly transactions
Centre has lifted an embargo which PNB Housing Finance and Yes Bank
Paytm officially stated that it has had previously barred most private jointly stated that they have entered
achieved over 1.2 billion monthly players from undertaking lucrative into a strategic co-lending agreement
transactions led by the massive growth government-related banking for offering customised retail loans for
in financial services and offline transactions. Various taxes and other homebuyers at competitive interest
payments. revenue payment facilities, pension rates.

12 | 2021 | APRIL | BANKING FINANCE