Country's first payment bank to come up soon: RBI

"I know that you are not happy that we have given licence to two (entities). We will come out with guidelines on universal commercial banking, which will be not be a single window, but it will be 'on tap',

.....India’s first payments bank, which will provide deposit and payment services but not extend loans, will be ready soon, H.R. Khan, a central bank Deputy Governor said at a banking conference. The concept of payments banks was first proposed by a Reserve Bank of India (RBI) committee led by its board member Nachiket Mor. Payments banks, which will bring financial services to unbanked areas of the country, can start operations with a capital of just Rs.50 crore, since all their money will be invested in safe government securities. In contrast, a full-service bank requires an entry capital of Rs.500 crore. They will be required to comply with all RBI guidelines for commercial banks. The Mor committee had also recommended giving permission for existing banks to create subsidiaries to operate payments banks.......

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