Banking Awareness 25: Payment Banks.

Are you willing to know the detailed information about the Payment Banks? Here is the article which provides you the clean and clear information about Payment Banks. It is one of the new Model banks which is conceived/designed by the Reserve Bank of India. This Types of Banks cannot issue Loans and Credit Cards. Here both Current accounts, as well as saving accounts, can be operated by these banks. These Payment banks can issue Services like ATM Cards, Debit Cards, Net-banking, and Mobile Banking. 

 The major moto of these banks is to promote digital, paperless and cashless banking throughout India. These banks are as similar to the Traditional banks, which offers interest on deposits in savings accounts which is made by them. These banks are now raising in India and in the future, it may become a tough competition for the Traditional Banks.

These are the following banks, for which RBI has approved a professional Payments Bank Licenses, they are:

  1. Aditya Birla Payments Bank.
  2. Airtel Payments Bank.
  3. India Post Payments Bank.
  4. Fino Payments Bank.
  5. National Securities Depository Limited.
  6. Reliance Industries Limited.
  7. Shri Dilip Shantilal Shanghvi.
  8. Paytm Payments Bank Limited.
  9. Tech Mahindra Limited.
  10. Vodafone m-pesa Limited.
  11. Jio Payment Banks.
  12. NSDL Payments Bank.
  13. India Post Payment Banks.

Important Features of Payment Banks:-

  1. These Banks can accept Demand Deposits with a Vault Limit of Rs. 1 lakh for every customer.
  2. These banks also pay interest at the rate which is notified by the RBI.
  3. It also can Issue Debit Cards but not the Credit Cards.
  4. These banks cannot engage with the Leading Services and also it cannot give loans too.
  5. The above-mentioned deposit of Rs. 1 Lakh is issued by the DICGC, like same as in Bank accounts.
  6. These banks cannot involve in any type of Credit risks but they can invest in less than one year G-secs or Treasury Bills.
  7. These banks will charge a fee as Commission and it is one of the sole earning for the banks.
  8. These type of banks should maintain CRR just like the other scheduled commercial banks.