scheduled banks

As a scheduled payments bank, Paytm Payments can participate in government and companies’ request for proposals, fixed-rate and variable rate repos

Paytm Payments Bank has gained Reserve Bank of India’s (RBI) approval to function as a scheduled payments bank, it said on Thursday, helping it to expand its financial services operations.

As a scheduled payments bank, Paytm Payments can participate in government and companies’ requests for proposals, primary auctions, fixed-rate and variable rate repos, and reverse repos, along with participation in Marginal Standing Facility.

It will also be eligible to be a partner in government-run financial inclusion schemes.

Shares in One 97 Communications ended 2.6 percent higher in a broader Mumbai market that was up 0.3 percent.

Paytm founder and billionaire Vijay Shekhar Sharma owns 51 percent of Paytm Payments Bank, while the rest is held by One 97 Communications Limited.

Paytm Payments Bank, a niche bank aimed at widening financial inclusion, still cannot lend or issue credit cards on its own.

It had more than 64 million savings accounts and over Rs 5,200 crore deposits, including savings accounts, current accounts, and fixed deposits with partner banks at the end of March this year.

(Reuters)