The Reserve Bank of India (RBI) has granted Paytm Payments Bank scheduled bank status, the company announced on Thursday. The bank has been placed in the Reserve Bank of India Act, 1934's Second Schedule, and the approval will allow it to offer more financial services and products.
With scheduled bank status, the bank can pursue new business prospects such as participation in RFPs issued by the government and other big enterprises, primary auctions, fixed-rate and variable-rate repurchase agreements, and reverse repurchase agreements. It will also be eligible to partner in government-run financial inclusion programmes and participate in the Marginal Standing Facility, according to a release.
"We have seen a rapid uptake of digital banking services, with users praising India's new banking era." Paytm Wallets are supported by the bank, which allows customers to make payments at over 87,000 online merchants and 2.11 crore in-store retailers.
"Paytm Payments Bank is the largest beneficiary bank and one of the top remitter banks for UPI transactions in the country, with over 15.5 crore Paytm UPI handles generated and utilised to send and receive payments.