Question
Download Solution PDFAs per the guidelines for licensing payments banks, a payments bank will initially be restricted to holding a maximum balance of Rs. ________ per individual customer.
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFThe correct answer is 2,00,000
A payment bank can accept only savings and current deposits of up to Rs 2 lakh per customer.
More About Payment Banks:
- Payment banks will undertake only limited banking functions which are allowed as per the Banking Regulation Act of 1949.
- Payments banks were introduced by the RBI to widen financial inclusion to small savings account holders, low-income households, unorganized sectors, migrant workers, and small businesses.
- The minimum capital requirement for the license of the payment bank is Rs 100 crore.
- Payment Banks can issue ATM/debit cards but not credit cards.
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A payment bank can distribute non-risk sharing simple financial products like mutual funds and insurance products. Banking Regulation Act of 1949- This act was enacted to safeguard the interest of the depositors and to control the abuse of powers by controlling the banks by any means necessary and to the interest of the Indian economy in general.
Last updated on Jun 17, 2025
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