PAYMENT BANKS IN INDIA
INDIAN POST PAYMENTS BANK
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INDIAN PAYMENT BANKS |
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WHAT ARE PAYMENT BANKS IN INDIA ?
A Payment Bank is a type of Non- full service Bank . They can receive deposits , make payments and arrange Remittance facility for their customers . They will not be able to take up lending activity or accept Term deposits . Such banks can give facilities of internet banking to their customers. They can issue debit cards , but cannot issue credit cards . They can sell Insurance policies and mutual funds . They can also act as business correspondents of regular commercial banks .
QUOTE : " Payment Banks are Feeders and not Threat to Big banks "
Sri Raghuram Rajan , Governor of Reserve Bank of India
Basically Payment Banks would help migrant workers , small households , small businesses and unorganised sectors who require minimum banking facilities like Remittances , Deposits etc . On 19th august 2015 , Reserve Bank of India has given licence or in -principle approval to 11 entities for opening such banks .
The eleven companies include:
The minimum capital requirements for such banks is Rs 100 crores . New licencees are directly to open at least 25% of the branches in unbanked rural areas . The Payment Banks have to invest their funds in Government bonds . 25 % of their funds can be kept in a bank account of a commercial bank .
RBI has initially limited a maximum ceiling of Rs 1,00,000 Balance for accounts / deposits per customer of such Payment Banks .
QUOTE : " Payment Banks are Feeders and not Threat to Big banks "
Sri Raghuram Rajan , Governor of Reserve Bank of India
Basically Payment Banks would help migrant workers , small households , small businesses and unorganised sectors who require minimum banking facilities like Remittances , Deposits etc . On 19th august 2015 , Reserve Bank of India has given licence or in -principle approval to 11 entities for opening such banks .
The eleven companies include:
- Aditya Birla Nuvo Ltd.
- Airtel M Commerce Services Ltd.
- Cholamandalam Distribution Services Ltd.
- Department of Posts
- Fino PayTech Ltd.
- National Securities Depository Ltd.
- Reliance Industries Ltd.
- Dilip Shanghvi, IDFC, Uninor.
- Vijay Shekhar Sharma (Promoter of Paytm)
- Tech Mahindra Ltd.
- Vodafone mPesa Ltd.
The minimum capital requirements for such banks is Rs 100 crores . New licencees are directly to open at least 25% of the branches in unbanked rural areas . The Payment Banks have to invest their funds in Government bonds . 25 % of their funds can be kept in a bank account of a commercial bank .
RBI has initially limited a maximum ceiling of Rs 1,00,000 Balance for accounts / deposits per customer of such Payment Banks .
PayTM Payment Bank prohibited from taking new customers
PayTM Payment Bank prohibited from taking new customers
Dated 12.03.2022 : Reserve Bank of India has yesterday, under section 35A of the Banking Regulation Act, 1949, directed Paytm Payments Bank Ltd to stop, with immediate effect, onboarding of new customers. The bank has also been directed to appoint an IT audit firm to conduct a comprehensive System Audit of its IT system. Onboarding of new customers by Paytm Payments Bank Ltd will be subject to specific permission to be granted by RBI after reviewing report of the IT auditors.
This action is based on certain material supervisory concerns observed in the bank.
Dated 12.03.2022 : Reserve Bank of India has yesterday, under section 35A of the Banking Regulation Act, 1949, directed Paytm Payments Bank Ltd to stop, with immediate effect, onboarding of new customers. The bank has also been directed to appoint an IT audit firm to conduct a comprehensive System Audit of its IT system. Onboarding of new customers by Paytm Payments Bank Ltd will be subject to specific permission to be granted by RBI after reviewing report of the IT auditors.
This action is based on certain material supervisory concerns observed in the bank.
YOU CAN NOW KEEP RS 2.00 LAKHS BALANCE IN PAYMENT BANK ACCOUNT
Dated 07.04.2021 : As per the present Guidelines for Licensing of Payments Banks issued by RBI , payments banks are allowed to hold a maximum balance of ₹ 1 lakh per individual customer. However RBI has decided now to enhance the limit of maximum balance at end of the day from ₹1 lakh to ₹2 lakh per individual customer. A circular in this regard will be issued by RBI shortly . RBI has enhanced the limit after reviewing the performance of payments banks and with a view to encourage their efforts for financial inclusion and to expand their ability to cater to the needs of their customers, including MSMEs, small traders and merchants .
To go through RBI Notification in this regard , CLICK HERE
Dated 07.04.2021 : As per the present Guidelines for Licensing of Payments Banks issued by RBI , payments banks are allowed to hold a maximum balance of ₹ 1 lakh per individual customer. However RBI has decided now to enhance the limit of maximum balance at end of the day from ₹1 lakh to ₹2 lakh per individual customer. A circular in this regard will be issued by RBI shortly . RBI has enhanced the limit after reviewing the performance of payments banks and with a view to encourage their efforts for financial inclusion and to expand their ability to cater to the needs of their customers, including MSMEs, small traders and merchants .
To go through RBI Notification in this regard , CLICK HERE
Payment Banks are regulated by Reserve Bank of India . Initial promoters of licencees entities should own 40 % capital for at least first 5 years . Foreign share holding is permissible as per FDI policy for private sector banks . The voting right is capped 10 % for any single shareholder .
The draft guidelines issued by Reserve Bank of India on Payment Banks is available on their website . To reach the guidelines . CLICK HERE
The draft guidelines issued by Reserve Bank of India on Payment Banks is available on their website . To reach the guidelines . CLICK HERE
WHAT WE CAN EXPECT FROM PAYMENT BANKS IN INDIA ?
Payments banks are expected to depend upon mobile and ATM infrastructure to provide transactional banking services. Opening an account is expected to be like acquiring a pre-paid mobile number. With the intense competition the new banks would generate may reduce charges for remittances, fund transfers and other banking transactions. Customers who do not have the means to maintain minimum balance will also can maintain accounts with Payment banks as revenues of payment Banks are earned through transaction charges .
As per RBI licence , new payment banks are to be set up within 18 months . But it is generally believed that many such licencees may establish their banks much earlier than the stipulated time frame.
As per RBI licence , new payment banks are to be set up within 18 months . But it is generally believed that many such licencees may establish their banks much earlier than the stipulated time frame.
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List of payment Banks in india
Active Payment Banks in India
Following Payment Banks have started their operations ( CLICK ON THE NAME OF THE BANK TO GO TO THEIR WEBSITE )
1. AIRTEL PAYMENTS BANK LIMITED
2. PAYTM PAYMENTS BANK LIMITED
3. INDIA POSTS PAYMENT BANK
4. FINO PAYMENT BANK
5 .JIO PAYMENT BANK
6. ADITYA BIRLA IDEA PAYMENTS BANK
For the brief details about individual payment banks , read the following paragraphs .
One may go to individual bank's website to know fully about their operations , charges they levy etc .
1. AIRTEL PAYMENTS BANK LIMITED
2. PAYTM PAYMENTS BANK LIMITED
3. INDIA POSTS PAYMENT BANK
4. FINO PAYMENT BANK
5 .JIO PAYMENT BANK
6. ADITYA BIRLA IDEA PAYMENTS BANK
For the brief details about individual payment banks , read the following paragraphs .
One may go to individual bank's website to know fully about their operations , charges they levy etc .
BRIEF DETAILS ABOUT ACTIVE PAYMENT BANKS IN INDIA
AIRTEL PAYMENTS BANK LIMITED
1. AIRTEL PAYMENTS BANK LIMITED : Airtel Payments Bank was launched in January 2017, by Bharti Airtel, India’s largest telecom provider . Airtel Payments Bank offers following services :
SAVINGS BANK ACCOUNTS : Open a Savings Bank account and get free personal accident insurance cover of Rs 1 Lakh and earn 3.0% rate of interest . Get an online debit card . Deposit cash at any Banking Point in your vicinity Withdraw cash through banking points or select bank ATMs . Buy third party insurance products Transfer money to any bank account in India through IMPS or UPI . Recharge prepaid mobiles/DTH and pay utility bills (electricity, water, gas, postpaid, etc.) . Book bus and train tickets .
DIGITAL WALLET : You can have Airtel Money Wallet, the digital wallet of Airtel Payments Bank. You can make online/offline digital payments, recharge your phone, pay utility bills, and much more with Airtel Money Wallet. The wallet provides you with an option to make simple, secure and quick payments through your phone. With Airtel Money Wallet, you can:
MAKE DIGITAL PAYMENTS : Make digital payments at thousands of online and offline merchants through
a. QR Code Scanning b . Payment to a phone number c. BHIM UPI 4. Merchant Initiated Payment .
You can also transfer money, recharge prepaid mobiles/DTH, pay utility bills, book bus / train tickets.
SAVINGS BANK ACCOUNTS : Open a Savings Bank account and get free personal accident insurance cover of Rs 1 Lakh and earn 3.0% rate of interest . Get an online debit card . Deposit cash at any Banking Point in your vicinity Withdraw cash through banking points or select bank ATMs . Buy third party insurance products Transfer money to any bank account in India through IMPS or UPI . Recharge prepaid mobiles/DTH and pay utility bills (electricity, water, gas, postpaid, etc.) . Book bus and train tickets .
DIGITAL WALLET : You can have Airtel Money Wallet, the digital wallet of Airtel Payments Bank. You can make online/offline digital payments, recharge your phone, pay utility bills, and much more with Airtel Money Wallet. The wallet provides you with an option to make simple, secure and quick payments through your phone. With Airtel Money Wallet, you can:
MAKE DIGITAL PAYMENTS : Make digital payments at thousands of online and offline merchants through
a. QR Code Scanning b . Payment to a phone number c. BHIM UPI 4. Merchant Initiated Payment .
You can also transfer money, recharge prepaid mobiles/DTH, pay utility bills, book bus / train tickets.
PAYTM PAYMENT BANK LIMITED
. PAYTM PAYMENTS BANK LIMITED : Paytm Payments Bank is India’s only mobile-first bank with zero balance - zero digital transaction charge accounts. It offers following services :
1. Deposits : Savings Bank & Current Account
2. Money Transfers
3. Salary Accounts
4. PayTM Wallet
5. Bill & Utility Payment like Telephone Bills , electricity & water bills
6. Merchant Payments
PayTM Payment Bank prohibited from taking new customers effective from 11.03.2022
1. Deposits : Savings Bank & Current Account
2. Money Transfers
3. Salary Accounts
4. PayTM Wallet
5. Bill & Utility Payment like Telephone Bills , electricity & water bills
6. Merchant Payments
PayTM Payment Bank prohibited from taking new customers effective from 11.03.2022
INDIA POSTS PAYMENT BANK
A post office
Dated 01.09.2018 : Prime minister Mr Narendra Modi inaugurated Indian Post Payments Bank ( IPPB ) at a function held in New Delhi today . The Payments Bank is backed by a vast network of Post offices all over India run by Postal Department of Government of India . He launched 650 branches of the new payments bank , 3250 access points and a mobile app of the bank . The IPPB will utilize more than 3 lakh postmen spread across India to deliver door step financial services . The services will include opening of accounts , cash deposit / withdrawals , money transfer , deposits and insurance .
To go to website of the bank , CLICK HERE
To go to website of the bank , CLICK HERE
India Post Payments Bank (IPPB) is a 100% government owned payments bank operating under the Department of Posts, Ministry of Communications . It utilizes all of India's 155,015 post offices as access points and 3 lakh postal postmen and Grameen Dak Sewaks to provide Door step services .
The bank offers following services :
1. Deposits : Savings Bank & Current Account
2. Money Transfers
3. Direct Benefit Transfers from Government Agencies
4. Third party products like Loans , Insurance & Investments . post office Deposits
5. Bill & Utility Payment like Telephone Bills , electricity & water bills
6. Merchant Payments
The bank offers following services :
1. Deposits : Savings Bank & Current Account
2. Money Transfers
3. Direct Benefit Transfers from Government Agencies
4. Third party products like Loans , Insurance & Investments . post office Deposits
5. Bill & Utility Payment like Telephone Bills , electricity & water bills
6. Merchant Payments
FINO PAYMENT BANK
FINO PAYMENT BANK :
Fino Payments Bank is a fully owned subsidiary of Fino Paytech Ltd. . It was the first payments bank to go live with 410 branches and more than 25,000 banking points on day one. The bank was incorporated on 4th April, 2017 .
The services offered include
1. Domestic Money Transfers & International Money Transfer
2. Current or Savings Account .
3. Aadhaar Enabled Payment System (AEPS)
4 . Cash at Point of Sale(POS) .
5 . Bill Payments , Mobile / DTH Recharge
6 . Cash Management Services (For Multiple Clients)
7 . Travel Bookings
Fino Payments Bank is a fully owned subsidiary of Fino Paytech Ltd. . It was the first payments bank to go live with 410 branches and more than 25,000 banking points on day one. The bank was incorporated on 4th April, 2017 .
The services offered include
1. Domestic Money Transfers & International Money Transfer
2. Current or Savings Account .
3. Aadhaar Enabled Payment System (AEPS)
4 . Cash at Point of Sale(POS) .
5 . Bill Payments , Mobile / DTH Recharge
6 . Cash Management Services (For Multiple Clients)
7 . Travel Bookings
JIO PAYMENT BANK
JIO PAYMENT BANK :
Reliance Industries Limited partnered with the State Bank of India to establish Jio Payments Bank Limited, . It was incorporated in November 2016.
The bank offers usual Bank account , digital payments , money transfer , Bill payment services through its Myjio App .
Any Indian resident above 18 years of age can open a Jio Payments Bank account with zero balance and with no charges and penalties .
Reliance Industries Limited partnered with the State Bank of India to establish Jio Payments Bank Limited, . It was incorporated in November 2016.
The bank offers usual Bank account , digital payments , money transfer , Bill payment services through its Myjio App .
Any Indian resident above 18 years of age can open a Jio Payments Bank account with zero balance and with no charges and penalties .
ADITYA BIRLA IDEA PAYMENTS BANK
ADITYA BIRLA PAYMENT BANK TO WIND UP ITS OPERATIONS
Dated 21.07.2019 : Operations of ADITYA BIRLA IDEA PAYMENTS BANK , a joint venture company between Aditya Birla group and vodafone - Idea cellular which started its operation in February 2018 , are being wound up as per newspapers reports .
It is reported that the board of Directors of the payment bank have applied to the regulators for voluntary winding up of the payment bank . They have also assured prompt payment of the money back to its depositors . Bank is said to have public deposits of Rs 20 crores .
Out of the 11 original licencees , Tech Mahindra, Cholamandalam Investment and Finance Company , IDFC Bank and Telnor have shut down their operations already .
ADITYA BIRLA IDEA PAYMENTS BANK was a joint venture company between Aditya Birla group and Idea cellular and had started its operation in February 2018 . Now the operations of the bank are wound up and no activity .
Dated 21.07.2019 : Operations of ADITYA BIRLA IDEA PAYMENTS BANK , a joint venture company between Aditya Birla group and vodafone - Idea cellular which started its operation in February 2018 , are being wound up as per newspapers reports .
It is reported that the board of Directors of the payment bank have applied to the regulators for voluntary winding up of the payment bank . They have also assured prompt payment of the money back to its depositors . Bank is said to have public deposits of Rs 20 crores .
Out of the 11 original licencees , Tech Mahindra, Cholamandalam Investment and Finance Company , IDFC Bank and Telnor have shut down their operations already .
ADITYA BIRLA IDEA PAYMENTS BANK was a joint venture company between Aditya Birla group and Idea cellular and had started its operation in February 2018 . Now the operations of the bank are wound up and no activity .
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