Paytm Payment Bank Receives Scheduled Bank Status from RBI
Moneylife Digital Team 09 December 2021
Paytm Payments Bank Ltd (PPBL), a subsidiary of digital payment services-provider Paytm, says it has received approval from the Reserve Bank of India’s (RBI) to function as a scheduled payments bank. This will help PPBL expand its financial services operations and introduce new products.
 
Paytm Payments Bank can now participate in government and companies’ requests for proposals, fixed-rate and variable rate repos and marginal standing facilities as a scheduled payments bank. 
 
While Paytm Payments Bank is a niche bank aimed at widening financial inclusion, it still can not lend or issue credit cards on its own.
 
Earlier on 7 October 2021, RBI had included Paytm Payments Bank in the second schedule to the RBI Act, 1934. 
 
As of March 2021, Paytm Payments Bank had more than 64 million savings accounts and deposits of over Rs5,200 crore, including savings accounts, current accounts and fixed deposits with partner banks.
 
Paytm Payments Bank had started operations as a payments bank from 23 May 2017 after receiving a licence under Section 22 (1) of the Banking Regulation Act from RBI to carry on the business of payments bank in India.
 
Paytm chief Vijay Shekhar Sharma was one of the 11 applicants who was issued in-principle approval for setting up a payments bank in 2015.
 
Comments
saharaaj
5 months ago
China has permeated quietly the financial regulatory bodies
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