Today, on December 9th, Paytm Payments Bank Limited the entity of Paytm gets the Schedule Bank. Paytm Payments Bank Limited (PPBL), a partner of Paytm. Under the RBI Act of 1934, banks that confirm to the RBI that their business is not conducted in a manner that is detrimental to the interests of savers will be placed on the second list. This news will give investors good confidence after listing on an unfavorable stock exchange in IPO.
As of March this year, Paytm Payment Bank Ltd had 64 million savings accounts and 52 billion Indian rupees ($688.5 million) in deposits. Including savings, current accounts, and time deposits at partner banks. PPBL will now have access to currency deposits as an advantage of the planned bank.
What is the Bank Schedule in India?
In short, all private, foreign and national banks operating in India are known as planned banks. These banks are on the second list of the Reserve Bank of India Act of 1934. The paid-up capital and funds raised by these banks must be at least Rs5 lakh in order to qualify as a scheduled bank. The proposed bank is responsible for low-interest loans from the Reserve Bank of India and membership in the clearinghouse.
For example Bank Axis or Bank IcIcI,
What did the authorities say afterward?
Satish Kumar Gupta, MD, and CEO of Paytm Payments Bank Ltd. said, “We are witnessing rapid adoption of digital banking services as consumers welcome a new era of banking in India. The addition of Paytm Payment Bank to the Second List of Reserve Banks Act of 1934 will help us innovate and bring more financial services and products to underserved and underserved Indians.
We saw the Impact in Stock Market as well,
The share price of Paytm was consolidated from morning till 2 pm in the afternoon. Though the news came later we saw a significant impact when the stock jumped from 1530-1537 per share to almost 1628 per share. In the end, the price got settled around at 1592 per share.
With its payment instruments such as Paytm Wallet, Paytm FASTag, Net Banking, and Paytm UPI, Paytm Payment Bank has grown to become one of the largest digital payment manufacturers in the country.