Paytm Gets Approval for Payments Bank

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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.

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