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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.

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.

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