Payments Banks in India 2020
A payment bank is just like any other bank, but operating without any credit risk on a smaller scale. In simple words, PB can carry out most of the banking operations but can't issue credit cards or. Payments Bank can accept demand deposits (up to Rs 1 lakh), offer remittance services, mobile purchases/transfers/payments and other banking services like debit cards/ATM, third-party fund transfers and net banking.
The RBI constituted a committee headed by Dr Nachiket Mor to study 'Comprehensive financial services for low-income households and small businesses' in September 2013. In January 2014, The committee submitted a report to RBI. One of the key suggestions of the committee was to introduce 'Payments bank' or 'Specialised Banks' to cater to the small businesses and lower-income groups so that, each Indian resident can have a global bank account by January 1, 2016.
Payments banks will do
almost all the operations that are currently being done by commercial banks in
India, but
the payments banks will work under specific restrictions/instructions.
Key Features of Payment
Banks:
1. Payments Bank can accept deposits from customer up to a maximum of Rs. 1 lakh (1,00,000).
2. Payments Bank can issue ATM/Debit Cards to its customers
but cannot issue a credit card.
3. Customers can open both Savings and Current accounts.
4. Payments Bank cannot provide lending services or loans to
its customers.
5. Payments Bank cannot accept deposits from the NRIs
(Non-Resident Indians).
6. Payments Bank will have to hold a maximum of 25 percent in
currents and fixed deposits with other commercial banks and invest a minimum of
75 percent of its demand deposits in government securities bills/treasury with
maturity up to one year for operational purposes.
7. Payments bank can sell pension products, mutual funds,
insurance products, and can work as a partner with other commercial banks with
approval from RBI.
8. Payments Bank must use the word "Payments Bank"
in their names to look different from other commercial banks.
9. Payments Bank will be allowed to provide mobile banking
and internet banking facility to its customers.
10. Payments Bank can accept remittances to be sent to or
receive remittances from multiple banks through payment mechanism approved by
RBI, such as RTGS / NEFT / IMPS.
|
Bank Name
|
Headquarters
|
Established
|
|
Airtel
Payments Bank
|
New Delhi, Delhi
|
2017
|
|
India
Post Payments Bank
|
New Delhi, Delhi
|
2018
|
|
Fino
Payments Bank |
Mumbai, Maharashtra
|
2017
|
|
Jio
Payments Bank |
Mumbai, Maharashtra
|
2018
|
|
Paytm
Payments Bank |
Noida, Uttar Pradesh
|
2017
|
|
NSDL
Payments Bank |
Mumbai, Maharashtra
|
2018
|
1. Airtel Payments Bank: Airtel Payments Bank (APB) is a public limited
company is a subsidiary of Bharti Airtel Ltd. with its headquarters in New
Delhi, Delhi, India. Airtel Payments Bank is the first company in India to
receive a Payments Bank license from the RBI, and it is the first live Payments
Bank in the country. The RBI issued the license under Section 22 (1) of Banking
Regulation Act, 1949 to Airtel Payments Bank on April 11, 2016. Airtel Payments
Bank is a joint venture between Kotak Mahindra Bank Ltd (holds 19.9% in APB)
and Bharti Airtel Ltd.
Launched Airtel Payments
Bank in September 2016 and went live with its pilot project in Rajasthan in
November 2016.
Open Your Airtel Payments Bank A/c
Awards:
·
IAMAI 7th India Digital Awards for Money Transfer Programme 2017.
·
Asian Banker Risk Management Award 2018.
2. India
Post Payments Bank: India
Post Payments Bank (IPPB) is a public sector payments bank an operated by the
India Post. On August 19 2015, the India Post received a licence to run a
payments bank from the Reserve Bank of India. On August 17 2016, it was
registered as a public limited government company for setting up a payments
bank. The bank had acquired about 3.5 crore customers by September 2020. IPPB
is operating with the Department of Posts under the Ministry of Communications.
IPPB has been allowed to link around 17 crore postal savings bank (PSB)
accounts with its accounts.
Open Your India Post Payments Bank A/c
3. PayTM
Payments Bank: In
August 2015, Paytm received a license from Reserve Bank of India to launch the
payments bank. The Paytm Payments Bank is a separate entity in which founder
Vijay Shekhar Sharma will hold 51% share, One97 Communications has 39%, and a
subsidiary of One97 and Sharma will own 10%. The bank was officially
inaugurated in November 2017 by the Indian Finance Minister, Arun Jaitley.
Open Your PayTM Payments Bank A/c
4. Jio
Payments Bank: Jio
Payments Bank is that started operating in 2018. Payment banks in India are a
special category of the bank that can accept deposits and make payments but
cannot issue loans or other forms of credit, including credit cards. Jio
Payments Bank Limited is a joint venture between the State Bank of India and
the Reliance Industries with the stake of 70:30. Jio Payments Bank became the
sixth payment bank to in India from April 3, 2018.
5. NSDL
Payments Bank: National
Securities Depository Limited (NSDL) is an Indian central securities depository
based in Mumbai. It was established in August 1996 as the first electronic
securities depository in India with national coverage based on a suggestion by
a national institution responsible for the economic development of India. RBI
issued a licence to NSDL to operate as a payment bank in India from October 29,
2018, under section 22(1) of the Banking Regulation Act 1949 to carry payment transactions.
6. Fino Payments Bank:
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