On December 9, Paytm Payments Bank Limited announced that it had been included to the Reserve Bank of India Act, 1934’s Second Schedule. Paytm Payments Bank can now explore new business prospects as a Scheduled Payments Bank, according to a press statement from the company.
“The Bank can participate in RFPs issued by the government and other big enterprises, primary auctions, fixed-rate and variable-rate repos, and reverse repos, as well as the Marginal Standing Facility,” it stated.
According to the press release, the Bank will now be qualified to participate in government-run financial inclusion initiatives.
Banks that satisfy the RBI that their affairs are not being conducted in a manner detrimental to the interests of its depositors are included in the second schedule, according to the RBI Act 1934.
“The inclusion of Paytm Payments Bank in the Second Schedule to the Reserve Bank of India Act, 1934 will enable us to innovate even more and provide more financial services and products to India’s underserved and unserved population,” stated Satish Kumar Gupta, MD and CEO of Paytm Payments Bank.
Paytm acquired RBI approval to operate its payments bank in January 2017. The payments bank has over 6.4 crore savings accounts and over Rs5200 crore deposits as of March 31, 2021, according to the business statement, which included savings accounts, current accounts, fixed deposits with partner banks, and balance in wallets.