WHAT IS A PAYMENT BANK?
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| Shri. Nachiket Mor, Head of the Panel on Financial Inclusion of Small Businesses and Low-Income Households. |
A Reserve Bank of India (RBI) panel on Financial Inclusion of small businesses and low-income households in India headed by Shri. Nachiket Mor, has recommended that a
special category of banks, called Payments Banks, be set up to widen the
spread of payment services and deposit products to small businesses and
low-income households in Asia’s third-largest economy, where about 40%
of the population still do not have access to formal financial services.
A Payment Bank will provide deposit and payment services but can't lend. Such banks will have a minimum entry capital requirement of Rs.100 crore, one-fifth of what a full-service bank requires, since they will have a near-zero risk of default. Payments banks will be required to comply with all RBI guidelines relevant for commercial banks. Existing banks should be permitted to create a payments bank as a subsidiary.
Visit:
http://www.thehindu.com/business/rbi-sets-rs100-cr-floor-capital-for-payments-small-banks/article6221623.ece
http://www.thehindu.com/business/Economy/rbi-to-come-out-with-payment-bank-soon/article6108258.ece
A Payment Bank will provide deposit and payment services but can't lend. Such banks will have a minimum entry capital requirement of Rs.100 crore, one-fifth of what a full-service bank requires, since they will have a near-zero risk of default. Payments banks will be required to comply with all RBI guidelines relevant for commercial banks. Existing banks should be permitted to create a payments bank as a subsidiary.
Visit:
http://www.thehindu.com/business/rbi-sets-rs100-cr-floor-capital-for-payments-small-banks/article6221623.ece
http://www.thehindu.com/business/Economy/rbi-to-come-out-with-payment-bank-soon/article6108258.ece
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