InvestorQ : Paytm Payments Bank has received Scheduled Bank Status. What does this mean?
leah Diaz made post

Paytm Payments Bank has received Scheduled Bank Status. What does this mean?

leah Diaz answered.
5 months ago
After a disappointing IPO that wiped off almost 50% of the market capitalization, Paytm has finally received good news from the RBI. Paytm Payments Bank Ltd (PPBL), a subsidiary of digital payment services provider Paytm, has received approval from the Reserve Bank of India to function as a scheduled payments bank.

With the approval, Paytm Payments Bank will participate in the government’s and companies’ requests for primary auctions, proposals, fixed and variable repo rates, and provide a Marginal Standing Facility. Furthermore, the scheduled bank will now be eligible to participate in government-run financial inclusion schemes. However, Paytm Payments bank cannot lend or issue credit cards to its customers.

The inclusion of Paytm Payments Banks has been approved through the Second Schedule to the Reserve Bank of India Act, 1934. Notably, the scheduled bank has 64 million savings accounts and over 52 billion Indian rupees as deposits in various savings and current accounts. The bank also supports 33.3 crore Paytm Wallets, allowing its customers to make payments to over 87,000 online merchants and 2.11 crore in-store merchants.

Paytm Payments Bank is also the leading remitter bank for UPI transactions in India and supports 15.5 crore Paytm UPI accounts. The approval is expected to push positive investor sentiments and can result in increasing the dull share price of Paytm to some extent soon.