Skip to main content

How Payment Bank Will Change The Banking Sector?

Payment Banks is a new system of the bank that is similar to the traditional banking system but is different in many ways. This type of banks provides their own wallet where the money is stored and the wallet holder does all the transactions from the payment wallet. The payment banks cannot provide loans/ credit card to the customer and only wallet payment or digital debit card is allowed also there is a limitation of maximum Rs.1, 00,000 that can be deposited.

Why Payments Bank?

In the year 2014 RBI introduced a new model of the banking system by surveying the needs and requirement of the market. This survey is headed by Mr. Nachiket Mor with a team of a financial advisor. The reason for this introduction of the new banking system is-
  • ·         To introduce low pay grade working class people into the financial system.
  • ·         To embrace the digital method of payment
  • ·         To promote digital India
  • ·         To reduce income tax theft

List of Payments Banks

The list of Banks RBI licensed in-principle to 11 entities-
  • ·         Aditya Birla Nuvo
  • ·         Airtel M Commerce Services
  • ·         Cholamandalam Distribution Services
  • ·         India Post Payments Banks
  • ·         Fino Paytech
  • ·         National Securities Depository
  • ·         Reliance Industries
  • ·         Vodafone M-Pesa
  • ·         Paytm
  • ·         Tech Mahindra
  • ·         Sun Pharmaceuticals

The advantage of Payment bank

Payment Bank has an advantage that does not offer by any payment method. The payment by payment bank is very easy, the payer has to just scan or input the payee mobile number and the payment is completed.   

The disadvantage of Payment bank

The disadvantage associated with the payment bank is that we cannot get credit cards or loan facility. The money we receive from the digital wallet is not transferable as it can be only transferred digitally and we still need a traditional bank to withdraw physical cash. However, the debit card is also available by some digital wallet which can be used in ATM machines.

The similarity in Traditional Bank and Payment Bank

There are few similarities in the traditional bank and payment banks like the requirement of IFSC Code for NEFT/RTGS/IMPS. For example i,f a person has to transfer money from India post payment bank wallet to other person bank account the he need the India Post Payment Bank IFSC Code.

Comments

Post a Comment

Popular posts from this blog

How Festive Season Brings lot of Happiness?

The Festive season of 3 months is the time where most of the holiday comes and we enjoy the most. when it comes to the holiday seasons comes a slight breeze of coolness can be experienced. It is the most enjoyable moments of the year. With this enjoyment, there are different events organized like mela, Gurga pooja pandal etc. and every religion cast and culture come together and become one. An unity can be felt in the air and a sense of togetherness in the heart of people. Many institutions provide a holiday for the people working, Studying etc. like Bank Holiday , School Holiday, Government Holiday. Along with holidays, you can get to buy new clothes and shopping is the prime activity that can be noticed in this season. List of Festivals in October to December Mahatma Gandhi’s Birthday Durga Puja (Astami) Ayutha Pooja/Durga Puja (Nabami)/Dussehra Dussehra/Durga Puja (Dasami) Diwali/Kali Puja Diwali (Laxmi Pujan) Milad-un-Nabi Guru Nanak’s Birthday Christmas ...
Post a Comment
Read more

List of Banks in india and how to check IFSC Code of the banks?

There are currently 27Public sector banks in India out of which 19 are nationalized banks(though none of the nationalized banks has 100 percent ownership of Govt of India). Allahabad Bank Andhra Bank Bank of Baroda Bank of India Bank of Maharashtra Bharatiya Mahila Bank Canara Bank Central Bank of India Corporation Bank Dena Bank IDBI bank Indian Bank Indian Overseas Bank Oriental Bank of Commerce Punjab & Sind Bank Punjab National Bank State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of India State Bank of Mysore State Bank of Patiala State Bank of Travancore Syndicate Bank UCO Bank Union Bank of India United Bank of India Vijaya Bank Post Bank of India Private-sector banks Axis bank Catholic Syrian Bank City Union Bank Development Credit Bank Dhanlaxmi Bank Federal Bank HDFC Bank ICICI Bank IndusInd Bank Karnataka Bank Karur Vysya Bank Kotak Mahindra Bank Lakshmi Vilas Bank RBL Bank Nainital Bank South Ind...
Post a Comment
Read more

Why you should have a SBI Account?

State Bank of India is the largest bank in India with 23% of the Market shares. SBI has over 24000 Bank branches all over the world. SBI is listed in the top 50 global bank list and listed in the Fortune 500 company list. SBI started 200 years ago with the Mergence of Bank of Madras, Bank of Bengal and Bank of Calcutta. and named as Imperial Bank of India. In the year 1955, It was renamed as State Bank of India and Government of India took the stakes with Reserve Bank of India. Recently, SBI merged few banks into the SBI to increase their asset.  SBI has 16 regional hubs and 57 zonal offices that are located at important cities throughout India. Other Non-Banking Business SBI also has the following non-banking business that contributes to their revenue-  ·          SBI Capital Markets Ltd ·          SBI Funds Management Pvt Ltd ·          S...
Post a Comment
Read more