Scribd Logo
Upload

Welcome to Scribd!

  • 50 views

    Payments Banks Group 1 Updated

    Uploaded by

    IBatJ
    The document discusses payments banks in India. It provides details about 5 payments banks including Airtel Payments Bank, Paytm Payments Bank, and Jio Payments Bank. Payments banks can accept deposits up to Rs. 1 lakh and provide services like savings accounts, debit cards, internet banking, and remittances. However, they cannot provide loans or credit cards. The document outlines the history and regulations around payments banks in India and their role in advancing financial inclusion. Key challenges for payments banks are their restricted business model compared to traditional banks.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Payments Banks Group 1 Updated

    Uploaded by

    IBatJ
    50 views17 pages
    The document discusses payments banks in India. It provides details about 5 payments banks including Airtel Payments Bank, Paytm Payments Bank, and Jio Payments Bank. Payments banks can accept deposits up to Rs. 1 lakh and provide services like savings accounts, debit cards, internet banking, and remittances. However, they cannot provide loans or credit cards. The document outlines the history and regulations around payments banks in India and their role in advancing financial inclusion. Key challenges for payments banks are their restricted business model compared to traditional banks.

    Original Title

    Payments Banks group 1 updated

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document discusses payments banks in India. It provides details about 5 payments banks including Airtel Payments Bank, Paytm Payments Bank, and Jio Payments Bank. Payments banks can accept deposits up to Rs. 1 lakh and provide services like savings accounts, debit cards, internet banking, and remittances. However, they cannot provide loans or credit cards. The document outlines the history and regulations around payments banks in India and their role in advancing financial inclusion. Key challenges for payments banks are their restricted business model compared to traditional banks.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    50 views17 pages

    Payments Banks Group 1 Updated

    Uploaded by

    IBatJ
    The document discusses payments banks in India. It provides details about 5 payments banks including Airtel Payments Bank, Paytm Payments Bank, and Jio Payments Bank. Payments banks can accept deposits up to Rs. 1 lakh and provide services like savings accounts, debit cards, internet banking, and remittances. However, they cannot provide loans or credit cards. The document outlines the history and regulations around payments banks in India and their role in advancing financial inclusion. Key challenges for payments banks are their restricted business model compared to traditional banks.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    You are on page 1of 17

    PAYMENTS

    BANK
    Group- 1

    Kirtan Singi- 187128


    Vedant Mathur- 187159
    Yashvi Fadia- 187166
    Yugam Bharadwaj- 187167
    Shiwank Ashutosh- 187168
    2

    Payments banks are like


    any other bank, but
    operating on a smaller
    scale without involving
    any credit risk.
    Payments bank provide
    3

    the services that


    include-
    ⊸ Acceptance of deposits to a maximum of rupees
    1 lakh only
    ⊸ Savings bank or a current account
    ⊸ Payment of interests just like normal banks
    ⊸ Issue of debit cards/ATM cards to its customer
    ⊸ Mobile Banking
    ⊸ Internet Banking Services
    ⊸ Provides Basic Financial services
    4

    Need for Payments Bank

    Digital, Paperless Catering the


    Financial
    and cashless unbanked and
    inclusion
    banking under banked

    Technology
    driven transaction Access to large
    which are no. of people
    traceable
    5
    How do payments bank earn
    profit?

    ⊸ Depositing money in
    securities and commercial
    banks offering high interest
    rate to what it offers.
    ⊸ Transaction costs
    ⊸ Cross selling and bank
    correspondents
    ⊸ POS and MDR
    6
    History of Payments Banks

    7 Jan 2014- 17 July 2014- RBI


    23 Sept 2013-
    Recomendation by released draft 27 November – Final
    Nachiket Mor
    Nachiket Mor guidelines for Guidelines by RBI
    Commitee
    Comittee interested parties

    19 August 2015-
    Feb 2015-
    License to 11 entities 28 Feb 2015- India
    to launch payments post payments bank Applications for
    banks payments bank
    in budget
    license
    (now only 7)
    7

    Advantages
    More Competition for Traditional
    Banks

    Achieve Financial Inclusion Objective

    Encourage digital payments

    Reduce SLR burden on Commercial


    Banks

    Check on Black Money


    8
    IMPACT ON INDIAN BANKING
    SYSTEM

    Competition Players from Attract retail and


    different industries business customers

    Financial Inclusion Ability to change


    face of rural India
    9
    Difference between Traditional
    and Payments Banks
    Feature Traditional Bank Payments Bank
    Making Deposits
    Interest on deposits
    Withdrawal Facility
    Availing of loans
    Credit Cards
    Buying investment
    options
    Deposit limit No limit Rs. 1 Lakh

    Less deposit amount and no credit- Payments bank


    Otherwise for larger deposits – Commercial banks
    10

    Examples of Payments Bank


    AIRTEL PAYMENTS BANK

    • Public Limited Company

    • First live payments bank in country

    • Joint venture between Bharti Airtel and


    Kotak Mahindra bank.
    11

    Paytm Payments Bank

    • Officially innaugrated in November


    2017

    • 51% share by Vijay Shekar Sharma,


    39% share One97 Communications,
    and 10% by a subsidiary of one97
    communications.

    • MD and CEO- Satish Kumar Gupta


    12

    Jio Payments Bank

    Jio Payments Bank is an Indian payments


    bank that started operating in 2018.

     Jio Payments Bank Limited is a joint


    venture between the Reliance
    Industries and the State Bank of
    India with the stake of 70:30.

    Jio Payments Bank is the sixth payment


    bank to commence operations in India
    13
    Scams/Frauds Related to
    Payments Bank
    The remote access mobile application scam
    Trap for gullible insurance seekers
    Phishing messages promising tax return
    KYC update hoax
    Simpleto crack passwords
    Fake UPI payment links
    Fraudulent NPCI/UPI/BHIM handles and portals
    Lack of awareness of UPI pay options
    • Not Permitted to lend
    • Investment- 2-4% net cost of funds
    No lending
    • Net return only 1%
    operations
    • Invests 75% of balances in SLR eligible
    government bonds or T-bills
    treasury
    • 25% deposits with other commercial banks Restricts
    model
    • Relies on low ticket account balances Payments only
    banks
    Challenges faced by payments
    14
    15

    Suggestions
    ⊸ RBI’s vision 2021 is focussed
    upon exceptional payment
    experience and cash-lite
    society. This hints towards a
    huge untapped market for
    payment banks.
    ⊸ Micro- credit , the
    differentiating factor
    16

    Conclusion

    ⊸ These are useful in the


    digital age.
    ⊸ Provides basic facilities
    through mobile phone
    ⊸ A lot yet to be done to reach
    the masses and to reach the
    goal of financial inclusion.
    17

    Any Questions?

    You might also like