Mobile wallet company Paytm is planning to launch India’s first payments bank around April-May 2016.

Paytm Payment Bank, the new entity created to house the payments bank, will also include the mobile wallets business.

Payments banks will serve as a tool to aid financial inclusion, extending financial help to MSMEs and SMEs. They will primarily offer remittance services and accept deposits worth up to INR10,000.

According to local media reports, the company is now searching for a CEO for the new service. It is planning to recruit 100 staff a month to start the new business.

Paytm, which now has over 104 million mobile wallets, expects to reach 150 million by March 2016, reported The Economic Times (ET).

"We have an edge on timeline. The next year or a year and half, when these companies get started, we will still be playing the business," Vijay Shekhar Sharma, co-founder of Paytm’s parent One97 Communications told ET.

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The wallet license will be surrendered shortly to the RBI and will operate under the payments bank licence.

"We will build our banking correspondent network first and also lead by technology," added Sharma.