Business Standard

Payments banks' search for right business model

Sandwiched between commercial banks and pure-play payments service providers, payments banks do not enjoy a level playing field

Image
Premium

Tamal Bandyopadhyay
More than four years after the first payments bank started operations in India, the banking regulator has doubled the maximum limit of funds that a depositor can keep with such a bank to Rs 2 lakh. This has been done to help “financial inclusion” and “expand the ability of payments banks to cater to the growing needs of their customers”.
 
How will doubling the deposit-taking ability help such banks?
 
First, let’s take a look at the performance of this set of banks. In August 2015, the Reserve Bank of India (RBI) gave conditional licences to 11, including a
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Apr 25 2021 | 8:50 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com