Paytm testing free Wi-Fi service; will honor net neutrality
The new round is expected to raise the company's value to $5 billion, which is twice its valuation at $2 million in May this year. Pictured: Logo of Paytm.Wikimedia commons

Infosys, Wipro, TCS, Oracle and HP are reportedly in the race to bag the Rs 125-crore technology outsourcing contracts to be finalised shortly by Indian e-commerce shopping website Paytm, which was given a licence last year by the Reserve Bank of India (RBI) to set up a payments bank. 

The contracts envisage core-banking, security and fraud detection and are expected to be awarded in a week, Paytm co-founder Vijay Shekhar Sharma was quoted as saying by The Economic Times.

One97 Communications Ltd, which owns Paytm, is planning to open a physical payments bank in August 2016.

"Internally, we were changing the launch date with the intention that by June (2016) we should pull it off, but July will also get covered because there is so much technology implementation happening," Sharma told ET.

Infosys, Oracle and Tata Consultancy Services (TCS) are in the race to offer core-banking services solutions for payments while Wipro and TCS have bid to sell their system-integration solutions, Sharma said.

Shinjini Kumar, former central banker and PwC executive, will head the company's payments bank as its CEO, according to an earlier ET report.

Former Airtel executive Saurabh Sharma will head the merchant and agent acquisition business while ex-Amazon India executive Vikas Purohit will lead Paytm's banking operations, ET reported.

Demand deposits from small businesses and individuals up to Rs 1 lakh maximum will be accepted by payments banks. However, NRIs cannot conduct business with such banks. 

[1 lakh = 100,000 | 1 crore = 10 million | 100 crore = 1 billion]

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