Overview of Payment Bank License
In the latest generation, the idea of fee bank has acquired each notable and handy hooks in its banking circle enterprise. The term price financial institution denotes a newly introduced RBI model, which had expanded transactions, such as an everyday bank, except for issuing credit score cards and lending. However, to start a web charge financial institution in India, an agency or an NBFC desires to collect price bank license from the RBI.
Similarly, the principle cause because of which the concept of charge bank has were given a whole lot significance is the stated model has the capability to give extensions to the authorities’ economic goals. Additionally, it will be cited that the concept of demonetization had completely recast the Indian monetary system. As an end result, humans now depend more on virtual payment portals and paperless transactions, which has in the end given a huge raise to the e-wallets or cellular wallets that have been earlier outcaste.
What is the Meaning of a Payment Bank?
Payment banks are designed to supply accessible and lower priced banking services to underserved segments of society, along with low-earnings households, small companies, and migrant workers. These banks focus on financial inclusion with the aid of offering important services that traditional banks won't provide to those companies.
Regulatory Structure of Payment Bank License
• Companies Act 2013;
• Banking Regulation Act 1949;
• Deposit Insurance & Credit Guarantee Corporation Act 1961.
• Foreign Exchange Management Act 1999;
• Reserve Bank of India 1934;
• Payment & Settlement System Act 2007;
Objectives of Payment Bank in India
The principle objective at the back of the creation of fee financial institution in India became to enlarge the attain and ambit of the price centres to the small businesses and earnings agencies. Further, the Reserve financial institution of India, by manner of the model of charge bank, desired to boom the penetration of budget into the far flung areas. The primary-ever charge financial institution that were given set up in India is the Bharti Airtel.
In addition, a comprehensive list of the price Banks which can be operating in India are as follows:
• Aditya birla nuvo;
• Airtel m commerce offerings;
• Cholamandalam distribution offerings;
• India post bills financial institution;
• Fino paytech;
• Countrywide securities depository ltd;
• Reliance industries;
• Vodafone m-pesa;
• Paytm
• Tech mahindra;
• Solar prescription drugs;
Key Benefits of the Payment Bank License in India
1. Zero Account balance
one of the principal blessings of a fee financial institution is that it isn't always mandatory and obligatory for the account holder to keep a sure quantity because the minimal required quantity. Meaning one could have 0 account balance as properly.
2. Better hobby price
The fee-saving gain, because of operational efficiency, is similarly surpassed to the patron through better interest..
3. Comfort
Another sizeable advantage of a charge bank is that because of its wide distribution community, the telecom services carriers and cellular wallet are able to convert its retail outlets to split banking factors.
4. Safe and secure
Due to four factor authentication, the idea of a payment bank is one of the secured fashions of on-line transaction introduced through the Reserve bank of India.
5. Account No is equal as cellular No
Normally, this isn't always that good sized feature, but it does boom the level of ease for the holders, who are an especially small commercial enterprise trader, merchants, and many others., as there is no want for them to recall another quantity as account range for sporting out transactions.
6. Cashback and discount gives
just like some other cellular wallet, a price financial institution provides numerous discount and cashback gives to the holder.
7. Extra benefits
A payment financial institution gives various blessings to its account holders apart from the cashback and bargain offers.
Characteristics of a Payment Bank in India
The basic traits of a charge financial institution license in India are as follows-
1. Gives Deposit as much as Rs 2 lakh
A fee financial institution with a charge bank license is eligible to simply accept deposits up to Rs 2 lakh. All of the customers need to comply with the desired limit, and no one is authorized to exceed the said restriction at any point in time. Further, it will be noted that an character can prefer to deposit an amount, both completely or partially.
2. The Reserve bank of India
Has said that the restrict to protect and safeguard customer’s hobby and in regards to the particularly new nature of such banks.
3. Facility of digital Debit Card
any other odd function of the fee financial institution having a price bank license is that it offers the ability of each bodily and digital debit playing cards. In addition, the debit playing cards render an edge to the clients to utilise all ATMs (automated Teller Machines) in each the home obstacles and overseas. The facility of virtual debit playing cards does no longer demand any sort of more expenses on cash withdrawals. Furthermore, the physical debit cards are supplemented via an annual rate best.
4. Clean Transactions through on-line Portal
not like the vintage and traditional banks, the idea of charge banks streamlines the process of creating and receiving cash via virtual structures. Additionally, it duly enables on line fund transfer offerings, inclusive of NIFT, IMPS and plenty of greater to the customers.
5. Possible way of creating charge
irrespective of wherein one resides or situate, he/ she will be able to effortlessly have the get entry to of services to charge banks, as the same runs digitally. A payment bank with a fee bank license gets rid of the requirement of touring a physical bank for the motive of depositing or taking flight coins.
Further, it shall be stated that all people can start his/ her payments bank enterprise on line, that, too, without having any bodily outlet. The most effective element required is the fee financial institution License.
Who is Qualified to Obtain a Payment Bank License in India?
1. Individuals/Professionals
2. Mobile telephone companies
3. Non-Banking Financial Companies (NBFCs)
4. Real sector cooperatives
5. Supermarket Chains
6. Public sector entities
7. Promoter or group of promoters who have a joint venture with a scheduled commercial bank
8. Non-bank prepaid payment instrument under the Payment and Settlement Systems Act, 2007
9. Corporate Business Correspondence
10. Public companies
Why eStartIndia for Payment Bank License?
eStartIndia provides professional assistance to apply for Payment Bank License in India, with full compliance with Reserve Bank of India (RBI) guidelines and other applicable laws. eStartIndia has the necessary expertise to guide you through the process. We help to assess your eligibility, we help to prepare the documentation and we help submit your application to the RBI. In doing so, we reduce the possibility of delays or being rejected.
We will prepare and review all business documentation required, including business plan, background checks for the promoters, compliance declarations, and financial background statements, according to the RBI's high standards. We cover compliance for the capital requirements of the payment bank, prepare the draft operational structure, and we help prepare compliance structures for AML (Anti-Money Laundering) and Know Your Customer (KYC) requirements.
eStartIndia has the requisite knowledge and competence in regulatory frameworks such as the Companies Act, Banking Regulation Act, and Payment & Settlement Systems Act, FEMA. eStartIndia will provide an uneventful and efficient licensing pathway for its clients. eStartIndia provides customised solutions for all types of business models, including NBFCs, telecom operators, corporate promoters, and promoters of paying banks.
If you go with eStartIndia because we offer a transparent process, faster turnaround times, and a dedicated team to help you with your compliant and successful payment bank implementation. We will help you become part of the growing digital financial ecosystem in India.
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