InvestorQ : What are payment banks?
Priyanka Singh made post

What are payment banks?

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Suresh Patil answered.
1 year ago

Payment banks are a new model of banks that have started operating in India. These banks differ from conventional banks as they cannot lend to their customers. They can, however, provide simple financial products, take deposits, allow remittances, etc. These banks will not lend to customers and will have to deploy their funds in government papers and bank deposits. The idea of a payment bank was conceptualised by the Reserve Bank of India (RBI) with the aim of furthering the objective of financial inclusion by providing small savings accounts, as well as payment or remittance services to migrant labour workforce, low-income households, small businesses, other unorganised sector entities, etc. Companies that wanted to apply for a license had to fulfill a stringent eligibility criteria before receiving a license. Name of Payments Banks 1. Airtel Payments Bank Limited 2. Paytm Payments Bank 3. Fino Payments Bank 4. Indian Post Payments Bank 5. Jio Payments Bank 6. Aditya Birla Idea payments Bank