We all know in India we don’t have much financial institution penetration, To enable this Govt comes up with Jan-Dhan Yojna in which there is plan to open a bank account to atleast one member of family.
What are Payment Banks?
“The idea behind a payments bank is to further financial inclusion by providing small savings accounts. These banks will mainly be used by payments and remittances to migrant labour workforce, low income households, small businesses and other unorganised sector entities” RBI said.
So these will be Bank’s with limitations (like in Airlines we have full service airlines and others)
Some limitations and features of payment bank’s will be:
- The maximum deposit that a payment bank can accept from an individual customer is Rs 1 lakh.
- Credit Card -Payment banks can’t issue credit card. However, a payment bank can issue you a debit and ATM cards for easy transactions.
- Loan – The Reserve Bank has clearly stated that a payments bank cannot undertaken any lending activity. So you will have to go to your regular bank if you need a loan.
- Safety : Apart from maintaining Cash Reserve Ratio (CRR) with the RBI, a payments bank will be required to invest 75% of its demand deposit balances in Statutory Liquidity Ratio (SLR) eligible government securities and treasury bills.So our money will be safe like a normal bank.
- The RBI said it is also open to applicants transacting primarily using the Internet/Mobile. The Payments Bank is expected to leverage technology to offer low cost banking solutions.
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