On August 03, 2021, SEBI issued a circular to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. SEBI permitted non- scheduled Payments Banks, which have prior approval from Reserve Bank of India, to act as a Bankers to an Issue (‘BTI’) subject to fulfilment of the conditions stipulated in the SEBI (Bankers to an Issue) Regulations, 1994.
Payments Banks registered as a BTI shall also be permitted to act as a Self- Certified Syndicate Bank subject to the fulfilment of the criteria laid down by the Board in this regard from time to time. The blocking/movement of funds from the investor to issuer shall only be made through the savings account of the investor held with the payments bank.