India Payment Banks its Guidelines Conditions in Brief

Payment Banks are recommended by the Nachiket Mor panel appointed by Reserve Bank of India these are special category of banks under which a need for transactions and savings accounts or to make payment services and deposit products to small businesses and low-income households for the under served in the population more effective and meaningful in India.
A Payment Bank is coming shortly (2 or 3 months) in our country with the permission of RBI & for starting these banks minimum capital required is Rs.100 crores.
  1. A Payment bank can do deposit business from all customers and they can transfer money to any other account at the request of the customer.
  2. A Payment bank cannot give loans to anybody & so getting profit to the bank is difficult.
  3. A Payment Bank can keep in deposit money with government for the purpose of safety, security & interest benefit.
Payment banks can do other ancillary business (additional business) by giving drafts lockers on commission basis.
Payment banks can be started by anybody with 10 years minimum banking experience (or) NBFC for starting NBFC minimum capital required is 50lakhs which is called NOF (Net Owned Funds), promoters.

The chairman of the Committee on Comprehensive Financial Services for Small Businesses and Low Income Households has already examined and recommended it to reduce the issues faced by the Pre-paid Payment Instruments Issuers (PPI issuers).
There are other conditions and requirements for setting up these banks so click here for more details like Payment bank guidelines and conditions, business plans etc.

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