Payments Banks (RBI Guidelines August 14)


RBI has issued guidelines for “Payments Banks” recently.

Indian Post came forward. Are there any NBFC / other Finance companies that may be real candidates for “Payments Banks” ?

If Payments Banks can not offer loans to customers, where will their profits come from? Is it a sustainable Business Model?

Veteran members in this forum may share knowledge… I wish and hope.

While the shape and form of Payments bank is still sketchy, the general perception is SuperMarkets and Telcos will be the early movers. Also a lot of rural focussed financial institutions can become payment banks. RBI also talked about a common bill payment platform. I read these 2 together & feel that’s another possibility

Companies like Reliance may become Payment banks (Supermarkets or Telco arm or both) and as well MFIs and companies that do retail transactions (eg. Shriram Chits). Other beneficiaries may include Technology vendors (AurionPro) that provide kiosks, mobile banking and cash management solutions and correspondent banking providers.

Sounds like the cash back facility available in the US and other places. If you pay with a debit card at super markets etc., you can withdraw cash along with your bill payment.