Paytm seeks in-principle nod on small bank licence

MUMBAI: Paytm Payments Bank has written to the Reserve Bank of India (RBI), seeking an in-principle approval for becoming a small finance bank (SFB) that will enable it to extend loans. The bank has said that the approval will help the lender prepare the groundwork so that it would not have to spend time when it completes the five-year waiting period in a couple of years.

Speaking to TOI, Paytm Payments Bank CEO Satish Kumar Gupta said that his organisation is the only profitable payments bank and has been in operations since May 2017. “One of the conditions for granting licence as a payments bank was that we have five years experience in the payments space.