Paytm gets scheduled bank status from RBI

Being a scheduled payments bank, Paytm Payments Bank can now explore new business opportunities.

The RBI will soon release a discussion paper on digital payment charges to ensure they are both affordable to users, and economically remunerative to providers.

The discussion paper will cover all aspects related to charges involved in various channels of digital payments such as credit cards, debit cards, prepaid payment instruments, UPI, etc. The paper will also seek feedback on issues related to convenience fees, surcharging, etc., and the measures required to make digital transactions affordable to users and economically remunerative to the providers.

This could be negative for fintechs like Paytm where major revenues come from payments and if wallet charges are regulated while cap on credit-card MDR could also impact spend based fee income.