Activities That Can be Performed by Payment Banks
1. Deposits: Payment banks accept ₹2,000,000 deposits. It accepts savings and current account demand deposits.
2. Government Securities: Deposits can only be invested in secure government securities as Statutory Liquidity Ratio. This must be 75% of demand deposit. Other designated commercial banks will hold 25% as time deposits.
3. Cross Border Remittances: On current accounts, payments banks can make personal payments and receive cross-border remittances.
4. Issue Debit Cards: Payment banks issues debit cards.
Payment Banks in India
Payments Bank was founded on the Nachiket Mor Committee’s suggestions to run on a smaller scale with little credit risk. The goal is to promote financial inclusion by providing banking and financial services to unbanked and underbanked areas, migrant workers, low-income households, small entrepreneurs, etc. They are registered under the Companies Act of 2013 but supervised by the Banking Regulation Act of 1949, RBI Act of 1934, Foreign Exchange Management Act of 1999, Payment and Settlement Systems Act of 2007, and others.
Table of Content
- Features of Payment Banks
- Payment Banks Regulations
- List of Payment Banks in India
- Activities That Can be Performed by Payment Banks
- Activities That Cannot be Performed by Payment Banks
- Difference between Payment Banks and Commercial Banks