Paytm Payments Bank gets RBI nod to function as scheduled payments bank
- Dec 11, 2021,
- Updated Dec 11, 2021, 7:21 PM IST
NEW DELHI: Paytm payments Bank, an associate entity of Paytm, on Thursday said it has received the banking regulator’s approval to operate as a scheduled payments bank, helping it to expand its financial services operations.
In a statement, the bank said it has been included in the second schedule to the Reserve Bank of India (RBI) Act, 1934.
After the announcement, Paytm’s share price rose 2.62 per cent to close at Rs 1,594.55 apiece. Since listing, Paytm’s share price has come under immense pressure.
With the scheduled bank status, the payments bank can now participate in government- and other large corporations-issued requests for proposal, primary auctions, fixed-rate and variable rate repos, and reverse repos, along with participation in marginal standing facility.
Also, the bank will now be eligible to partner in the government’s financial inclusion scheme.
It now becomes eligible for refinancing facility from the RBI at the bank rate, acquires membership to the clearing house, and gets access to currency storage facility.