RBI Allows 11 Applicants to Set Up Payments Banks, list of 11 New Banks

Reserve Bank of India (RBI) gave 'in-principle' approval to 11 applicants for payments banks including Department of Posts and National Securities Depository Limited. RBI had earlier issued Guidelines for Licensing of Payments Banks last year in November. The "in-principle" approval granted will be valid for a period of 18 months, during which time the applicants have to comply with the requirements under the Guidelines and fulfil the other conditions as may be stipulated by the Reserve Bank. In the Interim Budget 2014-2015 presented on July 10, 2014, the Finance Minister Arun Jaitley had announced the creation of such Payment Banks etc. to meet credit and remittance needs of small businesses, unorganized sector, low income households, farmers and migrant work force. 

Payment banks allow mobile firms, supermarket chains, and others to cater to individuals and small businesses. The Payments Bank will be set up as a differentiated bank and shall confine its activities to acceptance of demand deposits, remittance services, Internet banking and other specified services. Payments Banks will initially be restricted to holding a maximum balance of Rs. 1 lakh per individual customer. They will be allowed to issue ATM/debit cards as also other prepaid payment instruments, but not the credit cards. 

List of 11 applicants for payments banks are:
1. Aditya Bilra Nuvo
2. Airtel M Commerce
3. Cholaman-Dalam Distribution
4. Department of Post
5. Fino Paytec
6. National Securities depository Ltd
7. Reliance Industries
8. Dilip Shanghvi, IDFC, Uninor
9. Vijay Shekhar Sharma
10. Tech Mahindra
11. Vodafone Mpaisa