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Showing posts from August, 2015

Payment Banks in India, Meaning and Services - Banking Revolution on Cards

Banking, is gearing up for an upheaval. The Reserve Bank of India gave nod to 11 entities among 41 applicants - including Govt. run department of posts, Reliance Industries and Aditya Birla Group, telecom bigwigs like Airtel and Vodafone, and different technology and finance companies - to set up 'payments banks' in India.

What are Payment Banks?
A payments bank is a type of non-full service niche bank in India. Payments banks will be able to accept deposits up to only Rs 1 lakh and they cannot grant loans as compared to the traditional and present world 'universal banks' or regular banks. The money can be deposited in government bonds. These payment banks can issue debit cards but not credit cards. Rest they can provide all the services of a universal bank.

Payments banks will be largely depend and base on mobile and ATM infrastructure to offer transaction banking services. If you wish to open an account with any of these payment banks, it could be like purchasing a pr…