Airtel became
the first payment bank to be operational in India. RBI has announced licenses
for 11 entities in July 2015 as payment banks. Airtel started its operations
from Rajasthan through its customer support center’s Airtel Express. Airtel
will spread the operations, phase by phase to pan India by March 2017.
What are Payment Banks?
RBI has
formed a committee headed by Nachiket Mor in September 2013, for recommendations to ease
banking system and make banking system more convenient. Recommendations
included formation of “Payment Banks”.
Payment banks work similar to banks, but without assets. Payment banks were
authorized to take deposits, but restricted from giving loans. Initially payment
banks can take maximum of Rs.1 Lakh as deposit from a customer. The limit will
be revised after 18 months of operations.
Key Takeaways:
1. Any individual with Aadhar number can
open a payment account, even if the customer is not an Airtel Subscriber.
2. Account enrollment being paperless,
customer need to provide Aadhaar number with finger prints to open an account.
3. Account will be opened within an hour
based on the facility limitations.
4. Payment banks can issue ATM, Debit
cards for withdrawal of money. But, Airtel Payment bank initially abstained
from issuing them.
5. Max limit of Airtel payment bank is
Rs.1 Lakh. Deposits and withdrawals can be done from any Airtel Express
showroom. Currently operational only in Rajasthan.
6. Current accounts along with savings
accounts can be taken.
7. Airtel payment bank provides 7.25%
interest rate on deposits which is very high compared to conventional banks.
Most of the Public sector banks pegged interest rates to 4%, which private
sector banks like kotak offering 6% with deposits more than Rs.1 lakh.
8. Loans and credit cards are restricted
to be issued from payment banks.
9. 11 firms were announced eligible as
payment banks out of 41 applicants. Out of these, three have surrendered their
licenses. First one being "Chalomandalam Distribution Services", then
"Dilip Shanghvi, Sun Pharmaceuticals" and the latest, "Tech
Mahindra".
List of entities with payment bank license:
1.
Aditya Birla Nuvo
2.
Airtel M
Commerce Services
3.
Department of
Posts
4.
FINO PayTech
5.
National Securities Depository
6.
Reliance Industries
7.
Vijay Shekhar Sharma, Paytm
8.
Vodafone
M-Pesa