It is new model of banks by the RBI, which can accept restricted deposits currently limited to Rs 1 lakh per customer with the scope to increase further in future. The key features of the banks are lower charges with account, higher interest rate, conveyance to carry out door to door banking services. Generally banks tie up with BC’s and other banks to provide services that do not come carry the scope of credit risk. In India, Bharti Airtel is the first live payment bank.
The entire object of payment banks is to broaden the scope of payment and financial services to people with low incomes like low-income households, small businesses, migrant-labour workforce etc.
It all started with in sep. 2013 where RBI constituted a committee to study comprehensive financing services to propose measures to achieve financial inclusion and to widen access to financial services. The key suggestion of the committee was to bring in specialised banks (payment banks) to those who have low income and run small businesses so by jan 2016, every Indian Resident can hold a global bank account.
Yes, payment banks can appoint its promoter company as its corporate BC on basis of arm’s length basis and also subjected to the RBI guidelines on BC’s.
Yes, securities premium be taken into account for computing capitalisation, the minimum capital requirement is of Rs. 100 crores and that will include share premium too provided there is no other differential pricing of shares.
Yes, the promoter entity and the payment banks have a common director but that director cannot be the independent director of the Bank.
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