Payments banks are a new form of banks created under the cognizance of the Reserve bank of India (RBI). Payments banks cannot issue credit but can accept a restricted deposit, and the Payments bank deposit limit is Rs. 200,000 per customer and may be increased further. Loans and credit cards cannot be issued by payments banks in India. Payments banks can operate both current account and savings accounts. Payments banks can issue ATM cards or debit cards and provide online or mobile banking. Bharti Airtel set up India’s first payments bank, Airtel Payments Bank. Payments bank established in which year is a common question asked by most of the aspirants. The payments bank in India was first established in March 2017. Read further to answer questions on Payments bank in India UPSC, SSC, Banking, etc., In this page, we have added the Payments bank in India list, Payments bank meaning, payments bank vs normal bank comparison and more details. Without further ado, let’s jump into the article.
Payments Bank Meaning
Payments banks cannot issue credit and it is conceptualized by the Reserve Bank of India (RBI). Payment banks cannot issue loans and credit cards but it can accept a restricted deposit, which is currently limited to Rs. 200,000 per customer and may be increased further. The Payments banks are regulated by the Reserve Bank Of India (RBI).
Payment Banks In India Regulations
The details of payment banks in India regulations are explained with details.
- According to India’s regulations for FDI in private banks, foreign ownership would be permitted in these institutions.
- 100 crore is the required minimum capital.
- The promoter’s ownership should be maintained for the first five years at a minimum of 40%.
- The Banking Regulation Act of 1949 will govern voting rights. The Reserve Bank of India has the power to increase the maximum voting rights of each shareholder from 10% to 26%.
- There must be 25% of its branches in unbanked rural areas.
- To distinguish itself from other types of banks, the bank must use the term “payment bank” in its name.
- The banks will be registered as public limited companies under the Companies Act of 2013 and issued a license as payment banks under Section 22 of the Banking Regulation Act of 1949.
Payments Bank In India List
The payments bank in India list with their headquarters is tabulated.
Payments Banks In India And Their Headquarters
|Payment Banks||Headquarters||Tagline||MD/ CEO/ CMD||Chairman|
|Airtel Payment Bank (1st Payment Bank, April 1 2016)||New Delhi||Banking Is Now At Your Fingertips India’s First Payment Bank||Anubrata Vishwas||Sunil Bharti Mittal|
|FINO Payment Bank||Mumbai, Maharashtra||Qadar Aapki Mehnat Ki||Rishi Gupta||Mahendra Kumar Chouhan|
|Indian Post Payment Bank||New Delhi||Aapka Bank Aapka Dwar||Shri Vineet Pandey||Shri J Venkatramu|
|Jio Payment Bank||Mumbai, Maharashtra||Your Everyday Bank For all of your payments, banking and Financial Needs||H Srikrishnan||Vivek Bhandari|
|Paytm Payment Bank||Noida, Uttar Pradesh||Simplifying Payments For India||Deependra Singh Rathore||Vijay Shekhar Sharma|
|NSDL Payment Bank||Mumbai, Maharashtra||Technology Trust and Reach||Abhijit Kamalapurkar||Ashutosh Singh|
List Of 6 Active Payment Banks In India With Official Websites
The best payments bank in India list with their official website is added below. The Top Payments bank in India official website links can be checked.
|List of Payments Banks (PB)||Official Websites|
|1||Airtel Payments Bank Ltd||Click Here|
|2||India Post Payments Bank Ltd||Click Here|
|3||FINO Payments Bank Ltd||Click Here|
|4||Paytm Payments Bank Ltd||Click Here|
|5||Jio Payments Bank Ltd||Click Here|
|6||NSDL Payments Bank Limited||Click Here|
Features of Payments Bank In India
Here are some of the important features of payment banks in India.
- Payment banks can assist with money transfers, insurance and mutual fund sales.
- Payment banks cannot issue credit cards.
- Payments banks cannot engage in any lending activity.
- Payment banks cannot accept NRI deposits.
- Payment banks can invest money received from customer’s deposits into government securities.
Payments Bank vs Normal Bank
The difference between the payments banks and commercial banks are given below.
- By providing payment services and savings accounts, a payments bank broadens access to financial services.
- The issuance of credit cards or any type of loan is prohibited.
- There are several restrictions on how a payments bank can start a savings account.
- Up to 1 lakh can be deposited by customers to open a savings account, which is the maximum permitted.
- Currently, the interest rates offered by these institutions are comparable to those of regular banks.
- According to RBI regulations, payments banks are not allowed to open fixed or recurring deposits.
FAQs – Payments bank in India 2022
Q. What are payment banks in India?
Payments banks cannot issue credit and it is conceptualized by the Reserve Bank of India (RBI). Payment banks cannot issue loans and credit cards but it can accept a restricted deposit, which is currently limited to Rs. 200,000 per customer and may be increased further.
Q. How many payment banks in India 2022?
There are a total of 6 active payment banks in India 2022.
Q. Which is India’s first payment banks?
On April 11, 2016, Airtel Payments Bank became the first entity in India to receive a payments bank license from the Reserve Bank of India (RBI). It intends to bring banking services to the doorstep of every citizen of the country.
Q. Is Paytm a Payment Bank?
Paytm Payments Bank is India’s only mobile-first bank with zero balance — zero digital transaction charge. Paytm offers Paytm wallet and Savings bank account from Paytm Payment bank.
Q. Is IPPB private or govt?
India post payments bank limited, a public limited company wholly owned by the Government of India through Department of Post under Ministry of Communication and set up under the Companies Act, 2013, and the Banking Regulation Act, 1949 as a Payments Bank under the Department of Posts and in line with relevant
Q. Does payment banks maintain CRR?
Yes, the Payment banks have to maintain Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR).