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Payments banks are a new model of banks conceptualised by the Reserve Bank of India (RBI). These banks can accept a restricted deposit which is currently limited to INR 1 lakh per customer account. These banks cannot issue loans and credit cards as wel as both current account and savings accounts can be operated by such banks.
Why RBI launched Payment Banks?
As the entire India was lurching due to the Demonetisation of INR500 and 1000 currency , this move came in to support the existing digital banking infrastructure. All the National Banks are more or less engaged with their own set of challenges and to bring in revolution in the acceptance of digital payments at the PAN India level, Payment’s bank was formulated. Payments Banks licensees.
Recently RBI has given in-principle approval to the below list of people/organisation for Payment Banks. This move is seen to bring in more competition to the existing Fintech Companies like Paytm which are capitalising on this lifetime opportunity. Some of the companies awarded the Payment Bank License are:
- Aditya Birla Nuvo Ltd
- Airtel M Commerce Services Ltd
- Department of Posts
- Fino PayTech Ltd
- National Securities Depository Ltd
- Reliance Industries Ltd
- Vijay Shekhar Sharma, Paytm
- Vodafone mpesa Ltd
Other than the above listed entities three have surrendered their licenses. First one being “Chalomandalam Distribution Services”, then “Dilip Shanghvi, Sun Pharmaceuticals” and the latest, “Tech Mahindra