The Reserve Bank of India has granted Paytm Payments Bank scheduled bank status, the company announced on Thursday. The bank has been placed in the Reserve Bank of India Act, 1934's Second Schedule and the approval will allow it to offer more financial services and products.
With designated bank status, the bank can pursue new business prospects such as participation in RFPs issued by the government and other big enterprises, primary auctions, fixed-rate and variable-rate repurchase agreements, and reverse repurchase agreements.
It will also be eligible to partner in government-run financial inclusion programmes and participate in the Marginal Standing Facility, as per a release.