Payments Banks – पेमेंट्स बैंक Under the Companies Act a payment bank to establish a limited public company. They have to license under the banking regulations act, section twenty-two. Under the reverse bank of India act, Payment Bank entitled to the title of the scheduled bank. The title of Payment Bank still has to somewhere in the bank’s name in order to distinguish them from other banks. Get detailed info on Payments Banks from here.
These types of banks started in 2013. A committee created and lead by Nachiket Mor. Comprehensive Financial Service responsible for providing services to low-income people. By the start of the next year, Payment banks created.
Payment banks advantages
The interest rate of payment banks is a lot better than that of traditional banks. The rate offered by traditional banks between 3 and 6 percent compared to the 7 percent that offered by a payment bank. The payment banks offer the option of no balance accounts which is basically an account with no extra charges. The commercial bank will levy charges on the customer with an account that has a minimum balance.
Payment versus small banks
There are a few differences between these two types of banks. Small banks are financial banks and they offer services like accepting deposit and offering loan products. Payment banks are able to provide saving account and accept deposits. Small banks allowed to provide facilities for debit cards unlike payment banks that allowed to provide debit cards but the facilities for the cards. Both small and payment banks allowed to have their own ATMs. Small banks can lend money but payment banks are not allowed to lend money of any kind to the public. Small banks able to accept all types of deposit including fix, term and recurring deposit. Payment banks not able to accept any of these deposits.
The main objective for payment bank is to provide services to the labor workforce of migrants, small business, low-income people and unorganized sectors. Payment banks are able to offer many services that make their customer banking experiences the best but there are any services that many customers want or would desire that payment banks are just not able to provide. If you interested in learning a bit more about payment banks you can visit payment banks wiki. You can check online for the top payments banks and exactly what is payment banks.