Mobile commerce company Paytm has got Reserve Bank of India (RBI) approval to formally launch Paytm Payments Bank.
Last year, the RBI had issued a separate operating guidelines for payments banks and small finance banks in view of their differentiated nature of business and focus on financial inclusion.
The RBI has granted in-principle approvals to 11 payments banks in August 2015).
RBI said that it will have no objection to payments banks making arrangements with other scheduled commercial bank / small finance bank, whereby amounts in excess of the prescribed limit of ₹1 lakh can be swept into an account opened for the customer with the latter. This arrangement should be activated with the prior written consent of the customer.
Paytm has also launched UPI-enabled payment features on its wallet to further bolster its position in the digital payment space.
