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.


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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