India’s homegrown Paytm Payments Bank Limited today announced that it has been included in the Second Schedule to the Reserve Bank of India Act, 1934. Being a Scheduled Payments Bank, Paytm Payments Bank can now explore new business opportunities. The Bank can participate in government and other large corporations issued Request for Proposals (RFP), primary auctions, fixed-rate and variable rate repos, and reverse repos, along with participation in Marginal Standing Facility. The Bank would now also be eligible to partner in government-run financial inclusion schemes.
As per RBI Act 1934, Banks satisfying the RBI that its affairs are not being conducted in a manner detrimental to the interests of its depositors, are included in the second schedule.
Satish Kumar Gupta, MD & CEO of Paytm Payments Bank Ltd. said, “It is our constant endeavour to bring better banking services for Indians to drive 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.”
Paytm Payments Bank has emerged as one of the largest enablers of digital payments in the country with its payment instruments like Paytm Wallet, Paytm FASTag, net banking and Paytm UPI. The bank powers 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.
Recently, Paytm Payments bank emerged as one of the most successful digital banks operating in the Asia Pacific (APAC) region. In its report titled ‘Emerging Challengers and Incumbent Operators Battle for Asia Pacific’s Digital Banking Opportunity’, the Boston Consulting Group (BCG) has listed PPBL among the Top 10 digital challenger banks in the region that are profitable and have witnessed significant growth over the past years. Paytm Payment Bank Ltd was the only Indian digital bank on the list.