What is payment bank? Payment banks can take deposits up to Rs. 2,00,000. It can accept demand deposits in the form of savings and current accounts. The money received as deposits can be invested in secure government securities only in the form of Statutory Liquidity Ratio (SLR). This must amount to 75% of the demand deposit balance.
What is payment Bank and What are its Benefits
You can also call payment bank or payment bank as a new age bank, these banks work on a completely digital system. With some limitations, these banks provide services just like normal banks. Reserve Bank of India has also given approval to such payment banks.
Payment banks are playing an important role in making Digital India. Cashless transactions will be promoted through payment banks. You can operate the payment bank from your smart phone. You just have to install the payment bank’s app in your mobile, there is no need of any kind of paper work in it. Reserve Bank of India had given license to 11 payment banks, out of which only 6 payments banks are running, the rest have been closed.
Talking about the most popular payment bank, Airtel Payments Bank and Paytm Payments Bank are there.
Advantages of Payment Bank
- All you need is your mobile number and smart phone to open an account in Payments Bank.
- Through this you can make cashless payment at any merchant shop.
- Payment bank gives you debit card from which you can withdraw money from any ATM.
- Through payment bank, you can do your mobile, dth, electricity bill, ticket booking etc work from your mobile while sitting at home.
- You also get interest on the amount deposited in this bank, which is currently more than the savings account interest available in normal banks.
- Through payment bank, you can send money to any bank account in the country and can also take money.
- Some Payments Banks also provide you the facility of Fixed Deposit.
Payment Bank Limits
Despite having many advantages of payment bank, it also has some limitations like –
- Payment Bank cannot issue you a credit card.
- You can keep a maximum of one lakh rupees in this bank.
- These banks cannot give you loan.
list of payment banks
- Airtel Payments Bank
- India Post Payments Bank
- Paytm Payments Bank
- NSDL Payments Bank
- Fino Payments Bank
- Jio Payments Bank