Paytm, a digital payments service provider has been given scheduled bank status by the Reserve Bank of India (RBI). According to a release issued by Paytm, Paytm Payments Bank Limited has been included in the Second Schedule of the Reserve Bank of India Act, 1934. It may be recalled that in January 2017, Paytm had received permission from RBI to introduce its payments bank. The same company reported that as a scheduled payments bank, Paytm Payments Bank can now explore new business opportunities. Paytm shares started climbing after the news came to light and Paytm shares rose 5.87 percent to Rs 1,645 on BSE.
On behalf of Paytm, it was said that our bank will now be able to participate in the Request of Proposals (RFP) issued by the Government and other major corporations. It may be recalled that RBI had taken the decision in September and issued a notification in October, but it was officially announced by the company on Thursday.
Paytm to get these facilities:- After getting schedule bank status, Paytm Payments Bank can now share fixed rate and variable rate repo, and reverse repo, marginal permanent facility. At the same time, the bank will now be eligible for a stake in government-run financial inclusion schemes.
The bank will be able to take a loan at the rate:- It may be noted that the scheduled banks follow the protocol created by the RBI. They can get loans at a bank rate from RBI and get clearinghouse membership on their own. In addition, scheduled banks are allowed to borrow money from the Reserve Bank for day-to-day banking activities.
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