Payments banks bat for new model, pin hopes on lending licence amid stress

Payments banks can receive deposits of up to Rs 2 lakh per customer, but cannot lend

Payments banks are expecting to get the rights to offer small-ticket loans sometime soon, according to an industry source familiar with the matter. The industry has been in talks with the Reserve Bank of India (RBI) for some time in seeking lending rights.

At a time when many payments banks are struggling, allowing them to provide loans could help improve their margins, a senior executive from one such bank told Business Standard. The RBI regulations currently bar payments banks from offering loans to customers. However, these banks can offer loans to employees using their own resources, adhering to a board-approved