Payment Banks

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  • Payment banks are non-full service banks, whose main objective is to accelerate financial inclusion.
  • Payment Banks concept allows mobile firms, supermarket chains and others to cater to banking requirements of individuals and small businesses to further enhance financial inclusion.
  • Payments banks will mainly deal in transfer and remittance services and accept deposits of up to Rs 1 lakh.
  • They will not lend to customers and will have to deploy their funds in government papers and bank deposits.
  • They can accept demand deposit, issue ATM/debit cards but not credit cards.
  • They also can distribute non-risk sharing simple financial products like mutual funds and insurance products.