Payment Bank License

Package Inclusion :

  • Advsory on Payment business model
  • Business Plan.
  • Assistance in preparation of Application for license
  • Product and Market research

Payment Bank License

What are payment Bank?

Payment Bank are conceptualized by the Reserve Bank of India (RBI). The maximum deposits restricted to these types of Bank currently is INR 1 lakh per customer which shall be increased further. Both the current as well as savings account can be operated under such Bank. They can issue service relating to debit cards, online banking mobile banking and also ATM cards. Payment Bank also known as differentiated Bank shall be permitted to set up outlets (branches), ATMs, business correspondents, etc. but would be restricted to activities permitted to Bank under the Banking Regulation Act, 1949. Minimum paid up capital of payment bank shall be 100 crores.

Acts governed under payment Bank

The primary objective of payment Bank are to provide:

Small savings accounts

payment/remittance services to labour workforce, low income households, unorganized sectors, small businesses, high volume low value transactions etc.

Eligible players

The highlighting of payment Bank as follows

Procedure for payment Bank License

1. Step

Incorporation of a public Limited Company, in accordance with the Companies Act, 2013, RBI regulations, with the main objectives of acting as a payment bank.

2. Step

Filing of application to Chief General Manager of The Reserve Bank of India.

3. Step

The EAC (External Advisory Committee) shall evaluate the application, and call for information's and discussions with the applicant.

4. Step

RBI license shall be granted who fulfills all the eligibility criteria's.

5. Step

Name of applicants for bank license shall be shown in the official RBI site.

6. Step

In principle approval to operate as a bank, shall be taken up by The Reserve Bank of India. The bank needs to be set up within the time period of 18 months.

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