Is Paytm an NBFC?
By BYJU'S Exam Prep
Updated on: November 9th, 2023
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. A Non-Banking Financial Company (NBFC) is one that is registered under the Companies Act of 1956 and is in the business of making loans and advances.
Table of content
Paytm NBFC License
Paytm is a fintech company, whereas Paytm Entertainment is an NBFC (Non-Banking Financial Company). RBI guidelines state that a company must register as an NBFC if financial assets make up 50% of both its income and total assets. An NBFC is also involved in purchasing shares, stocks, bonds, debentures, and securities issued by local or federal governments.
- This 50% threshold was recently exceeded when Paytm Entertainment gave a one-time loan during the Covid problem.
- An example of an Indian payments bank is Paytm Payments Bank.
- With the permission of the Reserve Bank of India, it was established in 2015.
- Financial services like debit cards, savings accounts, and current accounts are offered.
According to a statement made by Paytm Payments Bank, the bank fully complies with the Reserve Bank of India’s data localization guidelines, and all of its data is housed in India.
Summary:
Is Paytm an NBFC?
Paytm is a fintech company, and its subsidiary Paytm Entertainment is a non-banking financial institution (NBFC). According to RBI regulations, a company must register as an NBFC if its financial assets account for 50% of its total assets and income.
Related Questions: