Payments Bank Limited (PPBL), a unit of leading digital payments firm Paytm, has got the Reserve Bank of India’s (RBI) approval to function as a scheduled payments bank. This will help PPBL widen its financial services operations.

Paytm Payments Bank can now explore new business opportunities. It can take part in government and companies’ request from proposals, primary auctions, fixed-rate and variable rate repos, and reverse repos, along with participation in the marginal standing facility (MSF).

Being a scheduled Payments bank, it will now be eligible to partner in government-run financial inclusion schemes.

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

The payments bank powers 33.3 crore Paytm wallets and enables consumers to make payments at more than 87,000 online merchants and 2.11 crore in-store merchants. More than 15.5 crore Paytm UPI handles have been created and are used to make and receive payments with Paytm Payments Bank, Paytm stated. 

It had more than 64 million savings accounts and $688.5 million in deposits, including savings accounts, current accounts and fixed deposits with partner banks at the end of March this year.

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