The deposit limit of the payment bank has been increased to Rs 2 lakh. Payment banks have been demanding to increase the limit for a long time. The government has recently increased the deposit insurance limit of deposits in banks to Rs 5 lakh.
Token picture of payment bank
The Reserve Bank has made a big announcement about the digital payment bank. This announcement has been made under the financial rules of the Reserve Bank. The Reserve Bank has increased the deposit limit of payment banks to Rs 2 lakh. Earlier this amount was 1 lakh rupees. This will help the different payment banks of the country. Before getting to know about this issue in detail, one should know about the payment bank. Actually, payment banks are also like other banks, but they operate at a small level and there is no risk of credit in it.
If you understand in simple language, payment banks can perform financial operations like other commercial banks, but there are some necessary obligations. For example, payment banks cannot give loans or can not give credit cards to customers. Other commercial banks do this work on a large scale. The payment bank can accept demand deposits of up to Rs 1 lakh, offer remittance service. In addition, mobile payment, transfer, ATM, debit card, net banking and third party transfer facilities are provided.
How to become a payment bank
In the year 2013, the Reserve Bank formed a committee keeping in mind the small scale business and banking facilities for low income people in the country. Dr. Nachiket Mor was made the chairman of this committee. The convenience of banking reached as many people as possible and this committee was formed to enable the maximum number of people to be added to this link. The committee filed its report in 2014. The report suggested the creation of a specialized bank or payment bank. By January 1, 2016, every citizen of the country should have a bank account of their own and to make this facility available exclusively to the people of the lower income group, it was suggested to constitute a payment bank.
Purpose of payment bank
Small businesses, low-income and migrant workers could be given banking facilities, this was the biggest motive behind starting a payment bank. In this, technology can be used more and more, especially mobile-based technology so that people can take and pay in minutes. The objective of the Reserve Bank through the payment bank is to emphasize on increasing banking facilities in the far-flung areas of the country. Currently, payment banks are being run on the basis of prepaid payment instruments (PPI) model. Airtel Money is a sample of this, according to which the guidelines of the Reserve Bank are not allowed to take fixed or recurring deposits.
In the year 2015, the Reserve Bank allowed 11 applicants of the country to form their own payment bank by the year 2017. In November 2016, Airtel launched the country’s first payment bank. This was a period of demonetisation and the country was struggling with financial crisis. Despite this, Airtel established the first payment bank. Easy banking facility is provided through the payment bank. Under this, people can get the facility of paperless banking. In this, the facility of mobile banking is also given. QR card based payment facility is also available. Payment banks help in third party services such as insurance, loans and investment.
RBI’s new announcement
According to a new announcement, the deposit limit of the payment bank has been increased to Rs 2 lakh. Payment banks have been demanding to increase the limit for a long time. The government has recently increased the deposit insurance limit of deposits in banks to Rs 5 lakh. The payment banks had sought to increase the deposit limit on the same basis, which the RBI has accepted and increased it to Rs 2 lakh.
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