RBI on Wednesday cleared 11 entities to set up payment banks. These payment banks will be entitled to accept deposits up to rs. 1,00,000 only and cannot grant loans. They can also issue ATM/debit card but cannot issue credit card. Payment banks are allowed to provide internet banking, money transfer, selling insurance and mutual fund.
Competition from these new banks has given public a hope for better services with low service charges. Maintaining of minimum balance is unlikely to be applied to payment banks. Since department of post is also in the list, rural areas may also get benefits from this.
Entities which are allotted license are –
- Aditya Birla Nuvo Limited
- Airtle M Commerce Services Limited
- Cholamandalam Distribution Services Limited
- Department of Posts
- Fino PayTech Limited
- National Securities Depository Limited
- Reliance Industries Limited
- Shri Dilip Shantilal Shanghvi (Promoter of Sun Pharma)
- Shri Vijay Shekhar Sharma (PayTM)
- Tech Mahindra Limited
- Vodafone m-pesa Limited
For more information see this Times of India article.