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  • Writer's pictureYashJ

Best Payment Banks in India 2021

A Payment Bank, as the name suggests is like any other bank, which functions and operates on a smaller and restricted scale.

The major point is of Credit Risk, as these banks can carry out certain baking operations but cannot advance loans or issue credit cards. The other activities include acceptance of deposits (up to Rs. 1 Lakh/individual), payment and remittance services, facilitate money transfer, internet banking etc.

Major Objective

The main objective behind these banks is to widen the spread of payment and financial services to small business, low-income households, migrant labour workforce in secured technology-driven environment.

Nachiket Mor committee on Comprehensive Financial Services for Small Businesses and Low Income Households recommended the setting up of Payment Banks.

Payment Banks were set up with the objective of providing financial services to the unbanked masses (small business, migrant labour etc.) and to expedite financial inclusion.

Features of Payment Banks

  • They are required to use the word “Payments Bank” in their names.

  • The Payment Banks can only accept the deposits up to a maximum of Rs. 1 Lakh only.

  • They are allowed to provide internet Banking and Mobile Banking.

  • These Banks can issue ATM and Debit Cards but are not allowed to issue a Credit Card.

  • They are not permitted to provide loans to customers.

  • Both Savings and Current account can be opened.

  • Like all other banks, they also need to maintain a Cash Reserve Ratio

  • Availability of services like ECS, NEFT and RTGS

  • They can engage in distribution of non-risk sharing simple financial products like mutual fund units and insurance products etc.

  • Not allowed to accept NRI deposits

  • They can provide the Facility of Utility Bill Payments to its customers and also general public.

Airtel Payments Bank

  • Easy accessibility with over 5 Lac banking points

  • Annual interest rate of 2.5%

  • Free personal accident insurance cover of Rs. 1 Lac

  • No minimum balance requirement

  • Virtual Debit Card

Paytm Payments Bank - Savings

  • No minimum balance requirement

  • All digital transactions are free

  • 2.75% Interest per annum on the money deposited in the Savings Account

  • Up to 6.5% interest can be earned on using Fixed Deposit facility

  • Free digital Debit Card on opening the Account

  • Physical Debit Card will be available on reques

Jio Payments Bank

  • No Minimum Balance Requirement.

  • Works With Any Telecom Operator.

  • Quick Account Opening.

  • Paperless Transaction.

  • Recharge and Pay Bill.

Benefits of Payment Banks

  • Security to hard earned savings

  • Better reach

  • Low Cost of Operation

  • Easy KYC Process

  • Low Risk Profile

Want to Earn more Interest than a Regular Savings Account ?

Read more about SBI Savings Plus Account:

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