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2. Topic Outline
 Introduction
-What is a Payment Bank?
-Structure
-Features
 Birth Of Concept
- The Nochiketa Mor committee
-Financial Inclusion
 Benefits
 Challeges
 Growth
 Impact On The Society
 Conclusion
-
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On 19th August 2015, The Reserve Bank of
India gave “In-Principle” License to eleven
entities to launch payment bank. These are
:
1. National Securities Depository Limited
2. Reliance Industries
3. Aditya Birla Nuvo
4. Airtel M commerce
5. Department of Post
6. Fino Paytech
7. Tech Mahindra
8. Vodafone M - Pesa
9. Cholamandalam distribution Services
10. Paytm
11. Sunpharma
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4. What is Payment Bank?
O These are new stripped down type of banks ,
which are expected to reach customers
mainly through their mobile phones rather
than traditional bank branches.
O They are allowed to undertake only certain
restricted banking functions that the Banking
Regulation Act of 1949 allows.
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5. Structure Of Payments Bank
Rs.100 Cr is the minimum capital
Maintain 75% of deposits on Govt. bonds
Maintain 25% of deposit in Other banks
Have a atleast 26% investment by Indians
Can only accept CASA deposit
Liability should not exceed 20 times of its net worth
Have 25% of branches in unbanked areas
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6. Features Of Payments Bank
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Who Can
Promote?
How do they
earn?
Prepaid card
issuers, Telecom
Companies,
NBFC’s, Business
correspondents,
Supermarket
Chains,
Corporates,
Realty sector co-
ops & PSUs
 RBI allows these
bank to invest 75%
in govt. Secuirity
25% in other Bank
 Charged 1 or 2% on
normal cash transfer
 No risk for losses on
NPAs
 Play on Volume by
attach million of
customer

7. Features Of Payments Bank
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O 1 Lakh deposit in
one acc
O Offer Internet
Banking
O Sell Mutual Fund,
Insurencre, Pension
O Offer Bill Payment
services for
customer
O Have business
Correspondents
O Offer credit card
O Extend Loan
O Handle cross
Border Remittance
O Accept NRI
deposit
Do’s
Dont’
s

8. Birth of the Concept
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The payment bank cames into
existance as a result of Nochiketa
more Comitte
Officially known as “Committee on
comprehensive Financial services for Small
business and low Income House hold”
Formed by the RBI governopr raghuram
rajan on 23 sep-2013
This committee had submiytted its Report in
January 2014 and had recommended,
among other things, Setti9ng up of the small
bank and payment bank

9. Benefits They offer
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Service Charge will come down
No cap to maintain minimum Balance
RBI rate cut Benefit
Payment Banks may make handling
cash a lot easier

10. Growth
 SBI will take off in 30% of RIL Proposed
Bank
 Bharti Airtel India s largest telecom
operator plan to give 19.9% to Kotak
Mahindra Bank
 Aditya Birla NUVO ltd has tied up with
Idea Cellular with 49% stake
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11. Impact On the Society
Need to introduce new product
and new Application
Increase their customer
Mobile phone transaction still
has opportunity to penetrate
rural India with alternate
methods for transaction
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“Payments Bank
will change the
way people think,
Change the way
they keep the
money, where
they keep their
money, the way
they pay”

12. Conclusion
 These bank targeted those masses who cannot
afford to visit branch for carrying out transactions
by providing them basic banking facilities through
mobile platform
 They will leverage the huge volume of transactions
for gaining profit
 They will face challenges like any other venture
but if successful , the payment bank promise to
change the banking scenario in India and will allow
the govt. to achieve its goal of financial inclusion.
They will also offer competition to the existing
bank and more competition is good for the
economy as whole.
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