Here is what you need to know about the functions of payment pank and what are the benefits you can avail from it.
What is Payments bank?
Payments bank licence will allow companies to accept deposits (initially up to Rs 1 lakh per customer), and are allowed to pay customers interest on the money that is being deposited, offer Internet banking, facilitate money transfers and sell insurance and mutual funds.
What is the objective of the payment bank?
The objectives of setting up of payments banks will be to further financial inclusion by providing small savings accounts and payments/remittance services to migrant labour workforce, low income households, small businesses, other unorganised sector entities and other users.
Do you get debit/credit cards for transaction?
No, you can’t get credit cards for transaction but the payment banks can issue ATM/debit cards.
What will payment banks do for the banking system
Such banks will ensure more money comes into the banking system and will help reach out to people in rural areas. Moreover, the payments bank licence will enable the network of 1,54,000 post offices (including 1,30,000 rural post offices) to offer banking services to the masses in the country.
What about applying for loans through payment banks?
The RBI guidelines say that the payments bank cannot undertake lending activities. So if you want to apply for loan, you will have to go to the regular banks which issue loans.
Is there any greviance body?
The RBI guidelines clearly say that the banks should have a high powered Customer Grievances Cell to handle customer complaints. The operations of the bank should be fully networked and technology driven from the beginning, conforming to generally accepted standards and norms.
Contact Finlaw.in for licensing of payments bank, small bank & for various Legal compliance services