Aditya Birla Idea Payments Bank Gets Nod From RBI To Start Operations
Aditya Birla Idea Payments Bank Gets Nod From RBI To Start Operations

Aditya Birla Idea Payments Bank has officialy began Payment operations after licenses were issued  to 11 firms by RBI in August 2015.

As per the reading issued by Reserve Bank, "Aditya Birla Idea Payments Bank Ltd has commenced operations as a payments bank with effect from February 22, 2018.”

The trend of payments bank was first started by telecom major Bharti Airtel in November 2016 and the Aditya Birla group-promoted firm is the latest to join the bandwagon.

Paytm founder Vijay Shekhar Sharma promoted Paytm Payments Bank started giving the differentiated banking services from May last year while FINO Payments Bank Limited has commenced operations in June 2017.

The Department of Posts has also been dealing with the payments on preliminary basis after it got a license for a payment bank, but the operations has not stated yet formally.

Payments banks were initiated by Reserve Bank to further financial inclusion by giving services such as small savings accounts, payment or remittance services to migrant labour workforce, low income households, small businesses and unorganised sector entites as well as other users.

A payments bank is not authorised to give loans. It is only permitted to accept demand deposits with a maximum balance of Rs 1 lakh per customer. It can issue debit cards but not credit cards. Besides, it can also act as a business correspondent to another bank.

 
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