Is Paytm an NBFC?
By Balaji
Updated on: February 17th, 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
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1. Paytm NBFC License and Guidelines
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2. Is Paytm an NBFC?
Paytm NBFC License and Guidelines
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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