Payments bank is a name which has become a common language today due to our shift to digital payments and digital banking. I feel glad to be born in an era of digitization and also have known the era before the advent of digitization. It gives us millennials a perspective of both eras. But the generation before us is still getting accustomed to this digital advent and there are people who may not be aware of payment bank features. So I am going to answer these questions and help them understand them.
Pay all your utility bills online through NoBroker and earn exciting rewards and cashback.What is payment bank in India?
The Nachiket Mor Committee's suggestions led to the creation of Payments Bank, which is intended to run on a smaller scale with little credit risk. By providing finance and banking services to underbanked and unbanked areas, aiding migrant labourers, low-income households, small business owners, etc., the major goal is to increase financial inclusion.
They are incorporated under the Companies Act of 2013 but are also subject to a number of other laws, including the Payment and Settlement Systems Act of 2007 and the Foreign Exchange Management Act of 1999. There are now 6 payment banks operating in India: Jio Payment Bank, Airtel Payment Bank, India Post Payment Bank, Fino, Paytm Payment Bank, and NSDL Payment Bank.
Features and example of Payment Bank
They are distinct banks, not universal ones.
These function on a more compact scale.
A minimal paid-up stock of Rs. 100,000 is required.
For the first five years after the start of its operations, the promoter of the Payment Bank must provide a minimum of 40% of the paid-up equity capital.
Advantages of Having Payment Banks
Financial inclusion and banking expansion in rural areas.
Enlargement of the established financial system.
A strong substitute for commercial banks.
Efficiently handles transactions of low value and high volume.
Access to a variety of services
I hope now you know about payment bank features.
Read More: What Is Non-Banking Financial Company? What is the difference between NBFC and Bank? Can NBFC issue credit card?
What is Payment Bank in India?
Apeksha
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2 Year
2022-08-09T11:05:16+00:00 2022-08-09T11:05:18+00:00Comment
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