Alerts & Updates

  • RBI grants in-principal approval for Payment Banks.

  • Online reporting with RBI.

  • Note on clarification issued by MCA.

RBI grants in-principal approval for Payment Banks

The Reserve Bank of India (RBI of Central Bank) has given in-principal approval to 11 selected companies for 18 months and upon complete adherence to stipulated conditions and guidelines laid down the applicant companies will be given licences. This move is expected to be the driver of financial inclusion and provide for a vibrant ecosystem.

Under strict due diligence of the applicant Companies, their management and undertaking governance issues with a focus on fit and proper criteria for promoters by the members of External Advisory Committee, the Central Bank has given approval for undertaking only payment related activities and has imposed restrictions on lending activities carried by a full service bank.

Accordingly, the selected companies will take deposits, convey remittances and dispense payments to recipients making them ideal for migrant workers. The sole aim of RBI in issuing such approval is to ensure that with the assessed abilities, financial strength and technology of applicant companies, there is one hundred percent outreach of banking channels in areas which remain uncovered. It is also sensed that pursuant to these fresh approvals, existing banks and companies providing wallet services will face pressure.

The Press release 2015-2014/437 issued by Reserve Bank of India dated August 19, 2015 is enclosed herewith for your quick reference :

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