Paytm Payments Bank on Thursday said it has been given the scheduled bank status by the Reserve Bank of India.
The bank has been included in the Second Schedule to the Reserve Bank of India Act, 1934 and the approval will help it to bring more financial services and products.
With the scheduled bank status, the bank can explore new business opportunities, including participation in government and other large corporations issued request for proposals, primary auctions, fixed-rate and variable rate repos, and reverse repos.
Besides, it can participate in Marginal Standing Facility and will be eligible to partner in government-run financial inclusion schemes, according to a statement.
“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,” Paytm Payments Bank MD and CEO Satish Kumar Gupta said.
The bank supports 33.3 crore Paytm Wallets and enables consumers to make payments at over 87,000 online merchants and 2.11 crore in-store merchants.
“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 statement said.