Some important highlights about payment bank license
There are certain things needed to be highlighted of payment bank which are being defined below -
1] Payment banks provide facilities of current deposit and saving deposit from individuals , even the small business but upto a certain prescribed limit.
2] NRI deposits are not allowed /accepted in the payment banks.
3] It issues debit cards/Atm but does not issue credit cards to the customers.
4] One can easily do the following functionalities such as NEFT ,RTGS , IMPS etc.
5] It is restricted to do lending activities .
6] One can use Internet Banking systems under payment banks.
What is procedure for obtaining payment bank license ?
The payment bank has to issue a licensing from the reserve bank of India in order to carry on its activities and proper working .The steps to achieve banking license are being guided below -
A] STEP 1-
The first step begins from Incorporation of public limited company as per companies act , 2013 under RBI regulation with main aim of working as a payment bank .
B] STEP 2 -
The 2nd step begins with the filling of an application to be sent to the chief general manager of the Reserve bank of India for the purpose of evaluation and verification .
C] STEP 3 -
This step begins with the evaluation of application by the EAC[ external advisory committee] being sent to the Reserve bank of India in the above step.The EAC shall call the applicant for discussion as well as to have some required information after the evaluation of the application.
D] STEP 4 -
The Reserve bank of India provides the license to the applicant in case all the eligibility criteria is being fulfilled.
E] STEP 5 -
The name of the applicant who receives license shall be seen on the official website of the Reserve bank of India[RBI] .
F] STEP 6 -
The approval to operate as a bank shall be taken by the reserve bank of india and the bank is needed to be set up in a timeframe of 18 months only.