Paytm Payments Bank announced Thursday that it had been granted proposed banking status by the Reserve Bank of India.
The bank was included in the second appendix to the Reserve Bank of India Act of 1934 and approval will help it offer more financial services and products.
The planned banking status will allow the bank to explore new business opportunities, including getting involved in government and other large companies that have published tenders, primary auctions, fixed and floating rate repos, and reverse repos.
It can also attend the Marginal Standing Facility and, according to a statement, is eligible to participate in government financial inclusion programs.
“We have seen rapid adoption of digital banking services with users appreciating the new era of banking in India.
“The addition of Paytm Payments Bank to the second appendix to the Reserve Bank of India Act of 1934 will help us innovate and provide more financial services and products to the underserved and unserved populations of India,” said Paytm Payments Bank MD and CEO Satish said Kumar Gupta.
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 million Paytm UPI handles have been created and used to make and receive payments, with Paytm Payments Bank being the largest recipient bank and one of the leading UPI transaction banks in the country.
“In the past financial year, the bank has also developed into the largest issuer and purchaser of FASTags in the country,” the statement said.
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