Payment Banks vs Small Finance Banks

Payment banks can receive deposits and remittances, but cannot lend, focusing on migrant labour and low income households.
Payment Banks vs Small Finance Banks

Small banks (Complete listwill lend to “unserved and under-served sections”, including small business units, s mall and marginal farmers, and micro and small industries.

Payment Banks 
Small Finance Banks 
Objective
Provide small savings accounts and payments /remittance services to migrant labour workforce and low-income households Financial inclusion and supply of credit to small business units and farmers through high-technology and low-cost operations
Eligible Promoters
Individuals or professionals with necessary experience and eligibility, existing NBFCs, corporate banking correspondents, mobile companies, supermarket chains, real estate co-ops and corporate entities Resident individuals or professionals with 10 years of experience in banking and finance, companies and societies owned and controlled by residents, existing NBFCs, microfinance institutions and local area banks owned and controlled by residents
Scope of Activities
Accept deposits but customer balance should not exceed Rs.1 Lakh Basic services of accepting deposits and lending
Cannot give loans, can issue ATM/Debit card but no credit cards No restriction on the area of operations
Can distribute non-risk simple financial products such as mutual funds and insurance products At least 50% of its loan portfolio should constitute loans and advances of upto Rs.25 Lakh
NRIs will not be allowed to open accounts
Capital Requirement and Promoter’s contribution

Minimum paid-up equity capital of Rs.100 Crore/initially 40%, to be gradually brought down to 26% within 12 years from date of commencement
Must read: List of Payment banks with Headquarters and Taglines

Update

On 19 August 2015, RBI approved "in-prinicple" licenses to 11 entities to start payment banks, these are 11 entities are :-
  • Aditya Birla Nuvo
  • Airtel M Commerce Services
  • Cholamandalam Distribution Services
  • Department of Posts
  • FINO PayTech
  • National Securities Depository
  • Reliance Industries
  • Dilip Shanghvi, founder of Sun Pharmaceuticals
  • Vijay Shekhar Sharma, CEO of Paytm
  • Tech Mahindra
  • Vodafone M-Pesa
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27 comments:

  1. Thank U Sir, very well explained in simple language.
    Helped a lot as didn't knew much about it.

    ReplyDelete
  2. Thank u sir very well explained

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  3. G Hi all,
    After reading the patna high court judgement following points are clear.
    1) The latest order updated on 11th dec is the final judgement copy of the case filed by NRL.
    2) without any doubt NRl have won the case .
    3) IBPS has been directed by court to allot vacancies of this financial yr to candidates rl and NRL.
    4) this case has been resolved so fast bcoz another case (CWJC:4288-2104) IN same patna HC was given judgement this yr.
    5) case 4288 clearly says that IBPS cannot transfer the vacancies of current financial yr also cannot declare that process is completed without alloting all the seats of a financial yr to eligible candidates.
    6) further in the present case (cwjc:8191) , court has directed IBPS to follow the earlier order .
    7) also if again the petitioner (NRL) go to court regarding same issue then the IBPS side arguments wiil be dismissed.
    in short our route is clear now. be happy.

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  4. Say something sir plz

    ReplyDelete
  5. Good evening friends

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  6. Please anyone help me that there will be quantitative or di in uiic xam

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  7. Descriptive ke kaise questions honge in uiic

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  8. i attempted 11 only in maths... other all above 30..... how much cut of will be for maths...please tell me

    ReplyDelete
  9. Hi friends i am Karthiga from Madurai, Tamil Nadu.
    Today i attended my sbi clerk interview at Madurai SS colony.
    overall
    the interview was good.....but they asked me unexpected questions like
    Democracy.....how is our present government.....who is the opposition
    party and leader.......rajya sabha and lok sabha.....Name of the MP who
    apologised in parliament recently....more political questions......but
    other than tat 2 banking related q, 2 subject related q, my last working
    experience....tats all...friends be prepared for all type of
    questions....but according to me watever we prepare not works out
    there....our presence of mind at tat time is very important...all the
    best for all who have interview in coming days....
    but all the panel members were very polite and they supported me more to get answers from me....

    ReplyDelete
  10. IBPS PO 3 Patna High Court Case: Case is disposed. What does it means???

    http://patnahighcourt.bih.nic.in/CaseStatus.aspx?CNO=NDAxNTAwMDgxOTEyMDE0-kyo08hZewEo%3d

    ReplyDelete
  11. how u got this information swati ..??

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  12. are bro m patna hi rehti hu to mujhe pta h or bhi kaafi information h bus ab reserve or non reserve dono lgne wale h or raman sir ki bat sach hone wali h k list dec end me aayegi

    ReplyDelete
  13. are bro m patna hi rehti hu to mujhe pta h or bhi kaafi information h bus ab reserve or non reserve dono lgne wale h or raman sir ki bat sach hone wali h k list dec end me aayegi g

    ReplyDelete
  14. raman can u tell me UIIC ka hall ticket kab tak aane ki ummid hai as the date is near but no issue of hall ticket

    ReplyDelete
  15. okay .but tume kya lagata hai kab tak ayegi reserve list ..??

    ReplyDelete
  16. Thank you for sharing your experience ...
    All the best for future nd I think u will be selected in interview....

    ReplyDelete
  17. Sir National Flag Day is observed on 7 December ..Please match with the records and correct.Please verify the data before posting.Its a request to you ..!!!!!!

    ReplyDelete
  18. Sir National Flag Day is observed on 7 December ..Please match with the records and correct.Please verify the data before posting.Its a request to you ....!!!!!!

    ReplyDelete
  19. Sir National Flag Day is observed on 7 December ..Please match with the records and correct.Please verify the data before posting.Its a request to you .........!!!!!!

    ReplyDelete
  20. kya hai ye case kisko fayada hoga or kaise

    ReplyDelete
  21. Wat is cut off for gen in sikkim(ibps clerk 3)???????????????

    ReplyDelete
  22. mostly questions were about gk, is in po they will ask gk or banking related questions will be asked

    ReplyDelete
  23. i attempted only 13 in maths ...i also other all above 30+

    ReplyDelete
  24. raman sir pls post expected cutoff ibps clerk iv

    ReplyDelete
  25. sir m vik reserve candidate (haryana) in ibps po3 want to file case against ibps ,seeking information regarding case alrdy in delhi high court ?

    ReplyDelete

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