Reserve Bank of India introduced a new type of banks, it is called Payments Banks. Payments Banks are introduced to increase banking facilities and improve digitalisation of transactions.
It took a long time before Payments Banks became a reality.
Payments Banks are small banks authorised by RBI to do banking transactions. They are not normal banks but can provide limited banking facilities.
Payments Banks means a small bank authorised by Reserve Bank of India to provide banking facilities. However these banks have restrictions such as they cannot provide loans or credit facilities. Payments banks are not authorised to accept large amounts from account holders. Payments Banks can accept deposits upto 1 lakh from a customer. However RBI can increase the limit.
Reserve Bank of India has given license to 11 entities to start Payments Bank. However as per our records only 6 have started their Payments Banking operations.
List of Payments Banks authorised by RBI
As per our records, following Payments Banks are actively engaged in banking services and are first to launch their Payments Banks.
Airtel was the first to launch its Payments Bank.
Normal banks have been in existence from a long time whereas Payments Banks is a new concept introduced recently. We have a large number of banks in India, whereas only around 11 Payments Banks are authorised and a very few Payments Banks are active.
Main differences between Traditional Banks and Payments Banks are:
It is a really good step taken by government and RBI to introduced these small and digitalised banks to increase banking adaption and banking facilities in India.
We believe Payments Banks have better future than normal banks looking at the current rapid changes in technologies.