Last Updated on Dec 15, 2021 by Ayushi Mishra
The Reserve Bank of India has approved Paytm Payments Bank’s inclusion in scheduled banks under the RBI Act, 1934, according to an announcement from One97 Communications. Paytm Payments Bank may now explore new business possibilities as a scheduled payments bank.
The bank can participate in request for proposals (RFPs) issued by the government and other big enterprises, primary auctions, fixed-rate and variable-rate repurchase agreements, and reverse repurchase agreements, as well as the Marginal Standing Facility (MSF). According to an official announcement, the bank will now be able to participate in government-sponsored financial inclusion programmes.
Satish Kumar Gupta, MD & CEO of Paytm Payments Bank, claimed that the company’s continual goal is to provide better banking services to Indians in order to foster financial inclusion in the country. “We have witnessed a fast adoption of digital banking services, with users appreciating the new era of banking in India. The inclusion of Paytm Payments Bank in the Second Schedule to the Reserve Bank of India Act, 1934, will help us innovate further and bring more financial services and products to the underserved and unserved population in India,” he said.
Paytm Payments Bank now accepts payments via Paytm Wallet, Paytm FASTag, online banking, and Paytm UPI. The bank claims to power 33.3 cr. Paytm Wallets and enables users to make payments at over 87,000 online merchants and 2.11 cr. in-store retailers.
“Over 15.5 crore Paytm UPI handles have been created and are used to make and receive payments, with Paytm Payments Bank being the largest beneficiary bank and one of the top remitter banks for UPI transactions in the country. In the last fiscal year, the bank has also become the largest issuer and acquirer of FASTags in the country,” the company stated.