Is Paytm an NBFC?

By Ritesh|Updated : September 6th, 2022

Paytm Entertainment, a division of Paytm, is an NBFC (Non-Banking Financial Company), while Paytm is a fintech company. According to RBI regulations, a business must register as an NBFC if financial assets account for 50% of its income and total assets.

Paytm NBFC License and Guidelines

  • When Paytm Entertainment recently provided a one-time loan during the Covid issue, it exceeded this 50% threshold.
  • Paytm Payments Bank is an illustration of an Indian Payments Bank.
  • It was created in 2015 with RBI's (Reserve Bank of India) permission.
  • It provides financial services like debit cards, savings, and current accounts.
  • On Monday, Paytm Payments Bank said that it complies entirely with the Reserve Bank of India's data localization regulations and that all of the bank's data is located in India.

Summary:

Is Paytm an NBFC?

Paytm is a fintech business, and its subsidiary Paytm Entertainment could be categorized as a non-banking financial institution (NBFC). A company must register as an NBFC under RBI regulations if its financial assets represent 50% of its total assets and income. This 50% cutoff was recently exceeded when Paytm Entertainment gave a one-time loan during the Covid problem.

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