PAYMENT BANKS IN INDIA
INDIAN POST PAYMENTS BANK
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PAYMENT BANKS
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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 .
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 .
INDIA POSTS PAYMENT BANK
PRIME MINISTER INAUGURATES 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
WHAT IS A PAYMENT BANK 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 .
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
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WHAT WE CAN EXPECT FROM PAYMENT BANKS ?
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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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 : It was Airtel M Commerce Services Ltd when it got licence from RBI . It is the first payment bank to get licence and to start operations . Airtel Mobile number of the customer will be the account number at the bank . It is paying up to 7.25% pa interest on the SB accounts . It is also offering free accedent insurance cover for rs 1.00 lakh for its customers .
2. PAYTM PAYMENTS BANK LIMITED : The bank boasts of free of charges on-line services . It pays a interest of 4% pa on its accounts
3. INDIA POSTS PAYMENT BANK : It is a Public sector Bank promoted by Indian Post and started its operations in January , 2017 . It is paying an annual interest rate of 5.5% .
4. FINO PAYMENT BANK : It has started its operations with opening of 410 branches . it is offering an interest rate of 4 % pa .
5 .JIO PAYMENT BANK : It is a collaboration of reliance Industries Limited and State Bank of India and it is expected to begin its full scaled operations In July 2019
6. ADITYA BIRLA IDEA PAYMENTS BANK : The joint venture company between Aditya Birla group and Idea cellular started its operation in February 2018 . now in July 2019 , newspapers have reported that the operations are being wound up .
One may go to individual bank's website to know fully about their operations , charges they levy etc .
1. AIRTEL PAYMENTS BANK LIMITED : It was Airtel M Commerce Services Ltd when it got licence from RBI . It is the first payment bank to get licence and to start operations . Airtel Mobile number of the customer will be the account number at the bank . It is paying up to 7.25% pa interest on the SB accounts . It is also offering free accedent insurance cover for rs 1.00 lakh for its customers .
2. PAYTM PAYMENTS BANK LIMITED : The bank boasts of free of charges on-line services . It pays a interest of 4% pa on its accounts
3. INDIA POSTS PAYMENT BANK : It is a Public sector Bank promoted by Indian Post and started its operations in January , 2017 . It is paying an annual interest rate of 5.5% .
4. FINO PAYMENT BANK : It has started its operations with opening of 410 branches . it is offering an interest rate of 4 % pa .
5 .JIO PAYMENT BANK : It is a collaboration of reliance Industries Limited and State Bank of India and it is expected to begin its full scaled operations In July 2019
6. ADITYA BIRLA IDEA PAYMENTS BANK : The joint venture company between Aditya Birla group and Idea cellular started its operation in February 2018 . now in July 2019 , newspapers have reported that the operations are being wound up .
One may go to individual bank's website to know fully about their operations , charges they levy etc .
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TAX ON RETIREMENT
MORE THAN 2000 VIEWS IN ITS FIRST WEEK OF PUBLICATION
CLICK HERE TO READ
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For INCOME TAX NEWS , CLICK HERE FOR BANKING NEWS CLICK HERE
HOW TO LINK YOUR AADHAR TO PAN ? CLICK HERE
AAYKAR SETHU , NEW MOBILE APPLICATION FOR ALL YOUR INCOME TAX JOBS
WHAT IS NEW ON PLAN N PROGRESS ? CLICK HERE