Indian mobile wallet and e-commerce company Paytm has selected Wipro to create technology infrastructure for its payments bank business, which is expected to be launched in the second half of 2016.
As part of the one-year partnership deal, Wipro will provide the core banking solution for the new payments bank.
In addition, the technology vendor will provide the programme to manage the integration of various key systems such as anti-money laundering and regulatory reporting solutions, as well as will manage data centres for the bank.
Commenting on the selection, Paytm payments bank CEO Shinjini Kumar said: "Technology is an integral part of the value proposition we seek to create for customers of our upcoming bank. They have a demonstrated track record in banking technology in India that will be important in ensuring that our innovative solutions are integrated with core banking systems in a compliant and secure manner, creating the right platform for service delivery at large scale."
Vijay Shekhar Sharma-led Paytm secured the in-principle approval from the Reserve Bank of India (RBI) in August 2015 to set up payment bank.
Payment banks are allowed to take deposits from both individuals and small businesses, offer internet banking and money transfers, and sell insurance and mutual funds. However, these banks will be restricted from carrying out lending services.