B.V.V.

SANGHAS

Institute of Management Studies,

Bagalkot

Presentation on

Payment Banks
Presented by
Ameen

Contents
Meaning of Payment Bank
List of Payment Bank
Features of Payment Bank
Payment Bank Structure
Difference between P/B ,C/B

Meaning of Payment
bank
Payment bank means - Digital wallet or mobile currency

which can be used to book movie tickets, pay utility

bills, do shopping etc, doesnt it should similar to PPI or
what existing banks offer? But here is the difference, the
payment banks could be supermarket chain mobile
service provider, non-banking financial companies, post
offices, agri/dairy type cooperatives etc.
Payment bank is based on the concept of PPI that
it is to load cash into mobile and use it to do various
transactions such as transferring money using your
mobile to another mobile holder bank account or to
point-of-sale terminals at large retailer and take out
cash

List of Payment Banks

1. National security depositary ltd
2. Reliance industrys
3. Adity Birla Nuvo
4. Airtel M-Commerce
5. Department of Posts
6. Fino Paytech
7. Tech Mahindra
8. Vodafone M- pesa
9. Cholamandam Distrubution Services
10. Paytm
11. Sun Pharma

1.

Features of Payment
Bank
Payment bank accept the
demand deposits (only current

account and savings account ) with a ceiling limit of Rs 1

lakh per customers

2. Payment bank will pay interest at the rate notified by the

RBI
3. Payment bank can issue debit cards but not credit cards
4. Payment bank cannot engage in lending lending services
i.e. they account give loans, thus phasing out of the fear of
NPA
5. Payment bank cannot involve in any credit risk and can
only invest in less than one year G-sec or treasury bills.

Payment bank structure

RBI in its draft guidelines has stipulated the minimum
equity capital of Rs 100 crore and minimum capital
adequacy of 15%
The leverage ratio shall not be less than 5% I.e. liabilities
should not exceeds 20 times of its net worth
Promoters holding shall not be less than 40% for the first
five years and 30% for the 10 years and 26% for the
12years from the commencement of the business of the
payment banks
Commercial bank could have payment a bank their
subsidiary

Difference between C/B

and
P/B
System
Can give
Can accept Can make
Can offer
loans

deposit

payments

interest on
deposits

Commercial
bank SBI,
PNB

Yes

Yes

Yes

Yes

Payment
banks

No

Yes

Yes

Yes

Prepaid
instruments

No

Yes

Yes

No

Payment
network
operator
( visa,
MasterCard

No

No

Yes

No

Open to Questions