According to a report by Money Control, Paytm Payments Bank is planning to apply to the Reserve Bank of India (RBI) for a small finance bank (SFB) license by June.
“I think (the application for SFB license will be moved) sometime around May-June next fiscal year,” a source familiar with the situation said to Money Control. Paytm has devised a bold strategy to join the loan market in collaboration with business partners.
Paytm’s founder and CEO, Vijay Shekhar Sharma, stated last year that becoming a small financing bank will address several payment issues. One 97 Communications (Paytm) indicated its intention to file for conversion into an SFB in a draft red herring prospectus submitted to SEBI before its first public offering (IPO) last year.
Existing payment banks having a satisfactory track record of at least five years may apply to be converted into SFBs, according to RBI criteria. In 2017, the RBI granted Paytm Payments Bank a payments bank license.