The Reserve Bank of India laid the foundation for payment bank in India. Jio, which is India’s 5th payments bank started its business recently enough. Initially, RBI granted permission to 11 companies for payments bank.
Payments bank are not allowed to give out borrowings. However, a commercial bank is allowed to lend upto a certain threshold.
Have a quick glance at India’s payments banks and the characteristics:
- Airtel Payments Bank: Technically, Airtel is the 1st payment bank in India with an interest rate of 7.25% on savings. Presently, Airtel offers the highest return on savings to users, in comparison to all other online payment banks. Upholding the paperless concept, users can operate each action on the app itself.
- Paytm Payments Bank: In May 2017, Paytm was relaunched as a payments bank. It offers an interest rate of 4% and the like. Services like Immediate Payment Service (IMPS), Unified Payment Interface (UPI) and National Electronic Fund Transfer (NEFT) are easily accessible.
- Fino Payments Bank: Along with payments, Fino Paytech Limited offers the savings, small loan facility to the users as well. One only needs an Aadhaar card and registered the mobile number for opening an account. The rate of interest is about 4%.
- India Post Payments Bank: India Post Payments Bank has started as a pilot activity and may spread its wings in the times to come. It is likely to expand across various locations in India and beyond. The bank rate is nearly 5.5 % on deposits.
- Jio Payments Bank: Jio is the recent most to join the club of the payments bank. It is a joint venture between RIL and State Bank of India and likely to stay for long. The rates are still to be pondered upon to keep it fully competitive.