Thursday, December 9, 2021

Paytm Payments Bank gets scheduled bank status from RBI


Paytm Payments Bank Limited (PPBL)
, an associate entity of Paytm, has gained the central bank's approval to function as a scheduled payments bank, it announced on Thursday, helping it to widen its financial services operations.

Paytm Payments Bank, a niche bank that cannot lend on its own, can now explore new business opportunities. It had over 6.4 crore savings accounts and more than ₹5,200 crore deposits, including savings accounts, current accounts and fixed deposits with partner banks at the end of March this year.

Being a Scheduled Payments Bank, Paytm Payments Bank can take part in government and other large corporations issued Request for Proposals (RFP), primary auctions, fixed-rate and variable rate repos, and reverse repos, along with participation in Marginal Standing Facility. The payments bank will now be eligible to partner in Centre-run financial inclusion schemes.

“The bank can participate in government and other large corporations issued Request for Proposals (RFP), primary auctions, fixed-rate and variable rate repos, and reverse repos, along with participation in marginal standing facility. The bank would now also be eligible to partner in government-run financial inclusion schemes," Paytm said in a statement.

The payments bank powers 33.3 crore Paytm wallets and enables consumers to make payments at more than 87,000 online merchants and 2.11 crore in-store merchants. More than 15.5 crore Paytm UPI handles have been created and are used to make and receive payments with Paytm Payments Bank, Paytm stated.

In the last financial year, Paytm Payments bank has also become the largest issuer and acquirer of FASTags in India. Recently, Paytm Payments bank emerged as one of the most successful digital banks operating in the Asia Pacific (APAC) region.

Shares in One 97 Communications ended 2.6% higher in a broader Mumbai market that was up 0.3%.

Paytm founder and billionaire Vijay Shekhar Sharma owns 51% of Paytm Payments Bank, while the rest is held by One 97 Communications Ltd.


Source: Livemint

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