Saturday, January 22, 2022

Payments Bank

 

* It's a new bank model conceptualised by RBI.

* It is licensed under Section 22 of the Banking Regulation Act, 1949, and  registered as public limited company under the Companies Act, 2013.

* Accepts deposit upto Rs 2 lakhs per customer but it can be raised by the RBI based on the performance of the bank .

* They are not permitted to lend to any person including its directors.

* 25% of its branches must be in the unbanked rural area.

* Cannot issue  credit cards, however, ATM cards/ debit cards, online/ mobile banking facility be provided.

* Savings bank account and Current account can be opened.

* Airtel Payments Bank is the India's first payments bank, set up by Bharti Airtel in March 2017.

* The minimum capital requirement is ₹100 crore. For the first five years, the stake of the promoter should remain at least 40%. 

* It's main objective  is to widen the spread of payment and financial services to small business, low-income households, migrant labour workforce in secured technology-driven environment.

* Utility bills can be accepted but not allowed to form subsidiaries to undertake non banking activities.

* The active payments banks include 
Airtel Payments Bank, India Post Payments Bank, Fino Payments Bank,
Jio Payments Bank, Paytm Payments Bank, NSDL Payments Bank.

* The defunct payments banks include Aditya Birla payments banks, Vodafone m-pesa Limited.

* The interest rates paid are
Airtel payments bank 6%
India Post payments bank 2.5%
Fino payments bank 2.75%
Jio payments bank 3.5%
Paytm payments bank 2.5%
NSDL payments bank 5%




Reference

1. https://www.google.co.in/search?q=payments+bank
2. https://en.m.wikipedia.org/wiki/ Payments_bank
3. https://m.economictimes.com/ definition/  payments-banks
4. https://www.goodreturns.in/ classroom/ the-best-interest-rates-paid- by-payments-banks-in-india 1232759.html


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