Payment Banks

By: Harveer Singhtwitter.com/iastoss+91-880-2009-420

This PPT is for educational purpose only. The learner is expected to supplement the video lecture with this ppt. The content is taken from various daily and weekly publications. Due care has been taken in preparing the material but the tutor or superprofs would not be responsible for any error or consequences arising out of it.

Harveer Singh 2

Payment Banks• The principle behind payments banks is simple—

accelerating the penetration of financial services among low-income consumers by leveraging technology and the large, non-banking retail network without compromising the security of the financial sector.

• Eleven payments banks, which got RBI’s in-principle licences on 19 August, have 18 months to meet all requirements and start working.

• They can collect deposits up to ` 1 lakh, provide payments and remittance services, and distribute third-party financial products.

Harveer Singh 3

• Unlike regular banks, they won’t be able to give loans and issue credit cards, but they can provide debit cards and Internet banking.

• Raghuram Rajan Committee on Financial Sector Reforms had made strong recommendations to change the interface between the financial sector and the poor.

Harveer Singh 4

• Telenor and Tameer Microfinance Bank have together set up the largest branchless banking service in Pakistan. Telenor has a large customer base, wide telecom and agent distribution network, marketing skills and relatively higher financial strength, while Tameer’s expertise lies in financial products, risk management and compliance. Responsibilities are aligned to the core strengths, revenues are shared in proportion to expenses and the revenue split is re-negotiated over time.

Thank You.

• For any feedback/query/word of thanks, the Tutor can be contacted at harveersinh@gmail.com