Paytm Bank Users Can Now Invest In Mutual Funds; Paytm Pledges All Assets To ICICI Bank
42 million Payments Bank users from Paytm can now invest in mutual funds.
Two very interesting developments have taken place at the Paytm camp.
More than 40 million Paytm Payments Bank customers can now easily invest in mutual funds, and pay via Paytm Money wallet.
Whereas Paytm’s parent company has pledged all its assets to ICICI Bank, in order to avail a loan. Why is this loan so important?
Keep reading to find out more..
Paytm Payments Bank Users Can Now Invest In Mutual Funds
Paytm has informed that they have now enabled mutual funds investment via Paytm Payments Bank. Earlier, mutual funds investment was possible only via other banks.
But now, Paytm Payments Bank is listed as a bank which can be used to make the investment.
Satish Kumar Gupta, MD & CEO, Paytm Payments Bank said “Paytm Payments Bank is in a mission to facilitate delivery of banking and financial services to every Indian. With this integration with Paytm Money, we introduce our customers to mutual fund investments and it is in line with our larger goal for financial inclusion.”
This is what Paytm Payments Bank customer needs to do, in order to invest in mutual funds via Paytm Money app:
- Electronically verify your Paytm Payments Bank account on Paytm Money App
- Enter the bank account credentials (mobile number, password)
- Enable a 4-digit PIN to verify
Once this is done, the user just needs the 4-digit PIN to make any mutual funds investment via Paytm Money app.
This is an easy, and seamless way to make mutual fund investment, via digital money.
Paytm Pledges All Its Assets To ICICI Bank
Meanwhile, One97 Communication, the parent company of Paytm has pledged all their assets and investments to ICICI Bank.
This has been done to secure a loan of Rs 1400 crore.
This loan of Rs 1400 crore will be used as working capital for managing operational expenses.
As of March 31st, 2018, Paytm’s total assets was worth Rs 7,085.1 crore. As per an agreement between Paytm and ICICI Bank, this asset was hypothecated to the bank, so that Paytm can borrow money. Till now, they were eligible to borror Rs 400 crore.
As per some analysts, this loan of Rs 1400 crore can be also used for expanding their Offline to Online business vertical.
We will keep you updated, as more details come in.