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  • Category: Miscellaneous

    Payment banks a new banking concept

    Popularising banking activities is a need of the age. Rural as well as urban population is demanding a cheap friendly banking option to make the life easier. In this juncture, PAYMENT BANKS has an important role to play in the economy. PAYMENT BANKS are working in digital platforms. Mobile phones can be the cheapest device to operate Payment Bank Accounts. Payment banks are successfully operating in different parts of the globe.
    1. Payment banks cannot issue loans.
    2. Payment Banks can raise deposits to a limit.
    3.Payment banks can issue debit and ATM cards.
    4. Payment Banks can do services like utility payment and cashless purchases

    Payment banks are aimed at low income groups with a low transaction cost.
    Payment banks have a major role in creating a digital economy as well
  • #579170
    Payments banks have recently been conceptualised by the Reserve Bank of India. Such banks can offer services like ATM cards, debit cards, online banking and mobile banking but cannot issue credit cards and issue loans. Both savings and current accounts can be opened in such banks.

    Such banks are required to be fully networked since the beginning and can accept utility bills also. Presently, the deposits are capped at maximum Rs. 1 lakh.

    The department of posts is the best example of a payment bank. Other license holders include the Reliance Industries, Vijay Shekhar Sharma, Paytm, Airtel M Commerce Services and Dilip Shanghvi, Sun Pharmaceuticals etc.

    Let us encourage each other in sharing knowledge.

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