The approval allows the firm to offer various bill payment services, including electricity, phone, DTH, water, gas insurance, loan repayments, FASTag recharge, education fees, credit card bill along with municipal taxes, reported PTI.
These services come under Bharat Bill Payment System (BBPS), which is owned by the National Payments Corporation of India.
Prior to the latest approval, Paytm Payments Bank has been offering the services through an in-principle consent from RBI.
In a statement, Paytm Payments Bank said: “PPBL has got the final approval from RBI to operate as Bharat Bill Payment Operating Unit (BBPOU) under the Payment and Settlement Systems Act, 2007.
“As an entity under Bharat Bill Payment System (BBPS), PPBL has got the final authorization to conduct bill payment and aggregation business as a BBPOU.”
As per RBI guidelines, Paytm Payments Bank will now exhibit its agent institutions on the company website.
Paytm Payments Bank spokesperson said: “Our vision is to drive financial inclusion by offering users greater access to digital services.
“With this approval, we will further increase the adoption of digital payments by merchant billers and enable them with secure, fast and convenient transactions.
“Through the Paytm app, users can make convenient payments for their bills and benefit from automatic payment and reminder services.”
The latest development comes close on the heels of a Reuters report that states that Alibaba divested a 3.1% stake worth $125m in Paytm.