Payment Banks: Payments banks are expected to provide small savings accounts, payments/ remittance services to migrant labour workforce, low-income households, small businesses, other un-organised sector entities and other users, by enabling high volume-low value transactions in deposits and payments/ remittance services in a secured technology-driven environment. A payment bank is covered under sections 5 (b) and 6 (1) (a) to (o) of the Banking Regulation Act, 1949.
How payment banks are different from regular banks: These banks can only receive deposits and remittances but cannot carry out lending activities. Aiming at financial inclusion, these banks will provide banking services to migrant labourers, low income households, etc. 1. What is the maximum amount that can be saved under payment bank account? A: The maximum deposit that a payment bank can accept from an individual customer is Rs 1 lakh.
2. Can a credit card be issued under this scheme? A: NO
3. Can a payment bank can issue a debit and ATM cards for easy transactions? A: YES
4. What is the amount of loan that can be sanctioned by a payment bank? A: No Loan facility. The Reserve Bank has clearly stated that a payments bank cannot undertake any lending activity.
5. Is it safe to save money with a payment bank? A: YES. Besides normal CRR (Cash Reserve Ratio) to be maintained with the RBI, a payments bank will be required to invest 75% of its demand deposit balances in Statutory Liquidity Ratio (SLR) eligible government securities and treasury bills. Further, a maximum of 25% will have to be held in current and fixed deposits with other scheduled commercial banks.
6. What is the capital required for opening payments pay? A: Rs 100 crore
7. Who led the committee on Comprehensive Financial Services for Small Businesses and Low Income Households formed in 2013? A: Nachiket Mor
8. Who all got licences: => Aditya Birla Nuvo, => Airtel M Commerce, => Vodafone m-pesa, => Tech Mahindra, => Vijay S Sharma of Paytm, => Dilip Shanghvi of Sun Pharma, => Reliance Industries, => NSDL, => Fino PayTech, => Cholamandalam Dist and => Department of Posts.
9. When the operations are likely to start? A: The companies selected will be given "in-principle" approval for 18 months, after which they will be given licences if they fulfill all conditions stipulated by the RBI.