Payment Banks in India

Payment banks in india

Payment Banks in India :

Payment Banks in India are like any regular bank, but they function on a minor scale and therefore, do not involve any credit risk. In other words, the majority of the banking operations can be carried out by these banks. Two of the facilities that a payment bank is incapable of providing are issuing credit cards and advancing loans. All these payment banks need to take approval from RBI to start & separate rules are framed by RBI for these types of Banks in India .

The demand deposit that can be accepted by the payment banks should not exceed 1 lakh rupees. Other services offered by the payment banks are mobile payments, remittance services, transfer of funds, ATM and debit cards, etc.

History of the formation of payment banks

In 2013, in September, a committee was formed by the Reserve Bank of India.           Dr. Nachiket Mor was made the head of the committee. A report was prepared by the committee in 2014 in which they stressed the necessity of introducing specialized banks to provide financial assistance to the small businesses and Indian citizens with low income. These banks were named as payment banks.

The primary objective of payment banks

With the introduction of payment banks, the primary aim of RBC was to provide financial services to the distant and rural areas in India. They offer economic aid to households with low income, small businesses and migrant labors in a secured environment.

Sl. No. Payment Banks in India
1 Airtel Payments Bank Limited
2 Fino Payments Bank Limited
3 India Post Payments Bank
4 Aditya Birla Nuvo
5 Jio Payments Bank
6 NSDL Payments Bank
7 Paytm Payments Bank

 

Reference site : https://en.wikipedia.org/wiki/Payments_bank