Payment Banks – A review
Hello Friends,
As various Banking exams will be going to held in the upcoming days. We are here with an article describing all about Payment Banks.
Payments banks are a new model of banks conceptualised by the Reserve Bank of India (RBI).They are New stripped-down type of banks, which are expected to reach customers mainly through their mobile phones rather than traditional bank branches.
Who has Reserve Bank granted in-principle approval to be a payment bank?
- Aditya Birla Nuvo Ltd
- Airtel M Commerce Services Ltd
- Cholamandalam Distribution Services Ltd
- Department of Posts
- Fino PayTech Ltd
- National Securities Depository Ltd
- Reliance Industries Ltd
- Dilip Shantilal Shanghvi
- Vijay Shekhar Sharma
- Tech Mahindra Ltd
- Vodafone m-pesa Ltd
What they can and can’t do
- They can’t offer loans but can raise deposits of upto Rs. 1 lakh, and pay interest on these balances just like a savings bank account does.
- They can enable transfers and remittances through a mobile phone.
- They can offer services such as automatic payments of bills, and purchases in cashless, chequeless transactions through a phone.
- They can issue debit cards and ATM cards usable on ATM networks of all banks.
- They can transfer money directly to bank accounts at nearly no cost being a part of the gateway that connects banks.
- They can provide forex cards to travellers, usable again as a debit or ATM card all over India.
- They can offer forex services at charges lower than banks.
- They can also offer card acceptance mechanisms to third parties such as the ‘Apple Pay.’
