MUMBAI: Paytm Payments Bank (PPB) will stitch together multiple partnerships with full fledged commercial banks for different products as it seeks to tide over restrictions associated with a payments bank license. 

It's most recent tie-up announced over the weekend allows deposits of more than Rs 1 lakh to automatically convert into fixed deposits with IndusInd Bank. 

This will provide our customers a safe, super-liquid and high yielding option for investments which can be redeemed instantly, Vijay Shekhar Sharma, chairman and majority owner of PPB, told ET. 
Payment banks such as PPB cannot keep public deposits of more than Rs 1 lakh with them. They also cannot lend. 
The Reserve Bank of India (RBI), however, allows these banks to tie up with full-service lenders as a banking correspondent, whereby they can channel business they cannot do. 
The tie-up with IndusInd will allow PPB to channel deposits in excess of Rs 1 lakh to IndusInd for a fee. 
Sharma declined to share details of the fee structure. 
This is an exclusive tie-up with IndusInd for this product. Going forward, we expect to have many such partnerships with different banks for ATMs and debit cards because we want to build multiple relationships and also give our customers options, Sharma said. 
This is Paytm's second tie-up with a full-service lender. In November, Paytm announced an agreement with ICICI Bank, wherein people shopping on the Paytm platform were eligible to get a Rs 20,000 loan from ICICI free of interest for 45 days and charged at credit card rates after that. 
Sharma expects to add more products to the PPB portfolio by the end of 2018. 
Paytm, which started as a wallet company, has 180 million customers. However, more than 90% of them just use the wallet service. 
The conversion from wallet to bank is happening rapidly. We already have 50 million customers who are KYC compliant which makes them potential future bank customers, Sharma said. 
PPB currently has no minimum balance requirements. It offers 4% interest on savings deposits just a shade higher than the large full service lenders. 
The bank is working on building a network of banking outlets supported by branches. 
We plan to have 31 operational branches by the end of 2018, which will support 1 lakh outlets. RBI norms now allow us to do all things through an outlet but we need branches to support it, said Renu Satti, CEO at PPB. 
PPB currently holds more than Rs 1,000 crore in deposits, most of that in its wallet used to make payments. 
Other operational payment banks include the ICICI-backed Fino Payments Bank, Airtel Payments Bank in which Kotak Mahindra has a 20% stake, and India Post Payments Bank backed by the government. 

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