Paytm Payments Bank has been granted Scheduled Bank status from the Indian central bank Reserve Bank of India (RBI).

The bank said it has been included in the Second Schedule of the Reserve Bank of India Act, 1934, which allows it to explore new business opportunities.

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Paytm Payments Bank can now participate in “government and other large corporations issued Request for Proposals (RFP), primary auctions, fixed-rate and variable rate repos, and reverse repos, along with participation in Marginal Standing Facility.”

Paytm Payments Bank MD & CEO Satish Kumar Gupta said: “The inclusion of Paytm Payments Bank in the Second Schedule to the Reserve Bank of India Act, 1934, will help us innovate further and bring more financial services and products to the underserved and unserved population in India.”

Banks that satisfy RBI that their operations are not impacting depositors negatively in any manner are included in the second schedule.

Earlier, Paytm Payments Bank revealed that it is considering converting into a small finance bank.

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The bank is a subsidiary of digital payments firm Paytm, which raised $2.46bn via India’s biggest-ever initial public offering (IPO) last month.

The RBI licensed Paytm Payments Bank in 2017. Currently, it claims to power 330 million Paytm wallets.

In other Indian banking news, earlier this week, private lender Kotak Mahindra Bank has reportedly partnered with crypto exchange WazirX.

WazirX has opened an account with the lender. Once operational, it will allow customers using WazirX to pay and receive money via Kotak’s bank account.