Dear aspirants List of Payments Banks in India and their headquarters is very important topic for Bank exams. In this article we presents you complete list of payments banks in India and their headquarters along with their heads and taglines.This is very helpful topic for IBPS exams, IBPS RRB, SBI PO, SBI clerk and other bank exams.This is a must read topic for a Bank aspirant. It is actually quite easy and scoring.
What is Payments Bank ?
A Payments Bank is like any other bank,but operating on a small scale without involving any credit risk. In simple words, it can carry out most of the banking operations but can’t give loans and can’t issue credit cards. Payments Bank can accept demand deposits up to 1 Lack for individual customer, offer remmitance services,mobile payments/transfers/purchases and other banking services like ATM/debit cards, net banking and third party fund transfers.
A Payments bank is a new category of banks conceptualized by the Reserve Bank of India. Payments banks are smaller versions of Traditional Banks. Their objective is to reach low income house holds and small businesses through mobile phones rather than traditional offices. Besides, it can also act as a business correspondent for another bank.
History of Payments Banks in India:
RBI had taken an advanced step to push our financial inclusion by providing the guidelines for licensing differentiated banks such as Payment Banks and Small finance banks. On November 27 2014, RBI had issued the guidelines for setting up payment banks in the country.These guidelines will allow mobile firms and other valid entity to enter the banking field to service the individuals and small businesses.
With an aim to provide banking services to unbanked areas mostly rural areas, Reserve Bank of India issued guidelines to setup payments bank. On 19 August 2015, the Reserve Bank of India gave “in-principle” licences to eleven entities to launch payments banks under Section 22(1) of the Banking Regulation Act,1949. They are
- Aditya Birla Nuvo (Aditya Birla Idea Payments Bank)
- Airtel M Commerce Services (Airtel Payments Bank Limited)
- Cholamandalam Distribution Services
- Department of Posts (India Post Payments Bank)
- FINO PayTech
- National Securities Depository
- Reliance Industries (Jio Payments Bank)
- Sun Pharmaceuticals
- Paytm payments Bank
- Tech Mahindra
- Vodafone M-Pesa
Note : From the above , three entities “Cholamandalam Distribution Services”, “Sun Pharmaceuticals” and
“Tech Mahindra” have surrendered their licenses.
National Securities Depository Limited and Vodafone M-Pesa are yet to start their operations.
As on Date Below mentioned Payments Banks are already started their bussiness.
list of Payments Banks in India and their headquarters, Heads and taglines :
|Name of the Payments bank||Headquarters||MD & CEO||Tagline|
|Airtel Payments Bank Limited||New Delhi||Anubrata Biswas||Banking is at your fingertips; India’s first payments bank|
|Paytm Payments Bank||Noida, UP||Renu satti (Resigned)||Simplifying Payments for India|
|Fino Payments Bank||Navi Mumbai, Maharashtra||Rishi Gupta||Qadar aapki mehnat ki|
|Indian Post Payments Bank||New Delhi||Suresh Sethi||Aapka bank, aapke dwaar|
|Jio payments Bank||Navi Mumbai||H.Srikrishnan Chairman: Vivek Bhandari|
|Aditya Birla Idea payments Bank||Mumbai||Sudhakar Ramasubramanian|
Guidelines and Regulations provided by RBI for Payment Banks :
- These banks can able to operate current accounts and saving accounts.They can issue ATM or Debit cards,Net Banking and Mobile Banking facilities to their customers.
- The payment banks can take restricted deposits which is currently limited to ₹1 lakh per customer.
- They can distribute the non-risk financial products such as mutual funds and insurance.
- They don’t have rights to provide lending services such as credit cards and issue loans facilities.
Other Guidelines and Regulations to follow :
- The initial minimum capital requirement of ₹100 crore is mandatory. FDI of 74% is allowed.
- The promoter contribution must be 40% for the first 5 years.
- Non – resident Indians(NRI) will not be allowed to open accounts in payment banks.
- They can be integrated with your savings bank accounts via IMPS and NEFT transfers and could enable transfers and remittances through a mobile phone.
- Payment banks must maintain CRR minimum 75% of demand deposits in government bonds of upto one year.
- They must maintain maximum 25% in current and fixed deposits with other scheduled commercial banks for operational purpose and liquidity management.
- 25% of its branches must be in the unbanked rural area. The bank must use the term “payments bank” in its name to differentiate it from other types of bank.
- The banks will be licensed as payments banks under Section 22 of the Banking Regulation Act, 1949, and will be registered as public limited company under the Companies Act, 2013.
- The voting rights will be regulated by the Banking Regulation Act, 1949. The voting right of any shareholder is capped at 10% now.
Now its time to end this article, we hope you have learned list of payments banks in India and their headquarters and taglines and also heads of payments banks .You can ask us for any queries and don’t feel shy to enter your valuable suggestions and comments.If you have found any mistake in this article feel free to report us. See you in the next session with some other interesting tutorials until then stay with us.
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