Paytm Payments Bank likely to apply to RBI for SFB license by June

News: As per moneycontrol, Paytm Payments Bank is likely to apply to the Reserve Bank of India (RBI) for a small finance bank (SFB) licence by June. RBI had mandated to continue as payments bank for five years before applying for SFB. The company has charted out an ambitious plan to enter the lending business with business partners.

Views: We believe if this materialises that would be a positive as Paytm has got a strong merchant network and data, which could enable it to build a healthy loan book.

Impact: Positive