On 19 August, 2015, the Reserve Bank of India gave a principle nod to 11 private parties to set up “payment banks. A payment bank is a differentiated bank that will undertake only certain restricted banking functions that the Banking Regualtion Act of 1949 allows. These activities include acceptance of deposits, payments and remittance services, internet banking and function as businescorrespondant of other banks. Initially, they are allowed to collect deposits up to Rs 1 lakh per individual.
Small Financial Banks
Reserve Bank of India (RBI) on September 15, 2016 granted in-principle licence for small finance banks to ten entities.
