Product details

Payment industry is expected to see a multiple growth in the coming few years with the entry of payment banks, mobile wallets, and prepaid cash cards. Further, it will be interesting to see how bigger banks, payments banks, small banks, wallet providers and payment service providers work in tandem to drive financial inclusion. Payment bank is a different type of bank that allows customers to open up an account and deposit the money of up to INR1 lakh. There are three payment banks in India- Airtel Payment Bank, India post payment bank and Paytm payment bank. Payment banks provide the enhanced services as compare to digital wallets but are not the replacement of established traditional bank. They don’t offer credit advance or loan to the customers as like traditional banks. They can issue debit cards and cheque books but not the credit cards. Also, there is a limited sum of money can be kept in account, which as if now is INR1 lakh and can offer the various payment solution to the customers. They are also required to invest 75 percent of their deposits in government securities.