Payment Banks Regulations
- The required minimum capital is ₹100 crore.
- The promoter’s interest should stay at least 40% over the first five years.
- Foreign shareholding in these banks will be permitted under India’s FDI guidelines for private banks.
- The Banking Regulation Act of 1949 will govern voting rights. The voting rights of any shareholder are limited to 10%, which the Reserve Bank of India might increase to 26%. 25% of its branches must be located in underserved rural areas.
- To distinguish itself from other types of banks, the bank must use the term “payment bank” in its name.
- Under Section 22 of the Banking Regulation Act of 1949, the banks will be licenced as payment banks and registered as a public limited company under the Companies Act of 2013.
Payment Banks in India
Payments Bank was founded on the Nachiket Mor Committee’s suggestions to run on a smaller scale with little credit risk. The goal is to promote financial inclusion by providing banking and financial services to unbanked and underbanked areas, migrant workers, low-income households, small entrepreneurs, etc. They are registered under the Companies Act of 2013 but supervised by the Banking Regulation Act of 1949, RBI Act of 1934, Foreign Exchange Management Act of 1999, Payment and Settlement Systems Act of 2007, and others.
Table of Content
- Features of Payment Banks
- Payment Banks Regulations
- List of Payment Banks in India
- Activities That Can be Performed by Payment Banks
- Activities That Cannot be Performed by Payment Banks
- Difference between Payment Banks and Commercial Banks
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