Payment & Small Banks
Banking · पेमेंट और स्मॉल बैंक · 16 facts
RBI granted in-principle licenses for Payment Banks and Small Finance Banks in 2015
Payment Banks can accept deposits up to Rs 2 lakh but CANNOT give loans
Payment Banks CANNOT issue credit cards or accept NRI deposits
11 Payment Bank licenses granted; Nachiket Mor Committee recommended them
Active Payment Banks: Airtel, India Post, Paytm, Fino, Jio
India Post Payments Bank: largest network using post offices across India
Small Finance Banks can both accept deposits AND give loans
Small Finance Banks must lend 75% to Priority Sector (agriculture, MSME etc.)
10 Small Finance Banks licensed in 2015; operational from 2016-17
AU, Equitas, Ujjivan, Jana, Suryoday are major Small Finance Banks
Min capital for Payment Bank: Rs 100 crore; Small Finance Bank: Rs 200 crore
Small Finance Banks target unserved sections — small farmers, micro industries
Both types must have 25% branches in unbanked rural areas
Payment Banks can sell mutual funds, insurance and pension products
Difference: Payment Bank = deposit only; Small Finance Bank = deposit + lending
Payment Banks invest in govt securities and T-Bills (safe instruments only)