On Saturday, September 1st, the government of India deployed the payments bank of the Indian Postal department. The purpose of this is to take banking to doorsteps of every Indian. Close to 5 months ago, Fino Payments Bank announced its plan to deploy 10,000 mPoS (mobile Point of Sale) devices, which would act as banking points. The device is configured to contain a camera, card reader, printer and fingerprint scanner.
This would allow citizens to perform regular payments bank operations such as opening a new payments bank account, deposit cash, transfer money, withdraw cash and register for banking products such as gold loan and insurance. Even customers with debit cards from other banks can make payments and withdrawals.
What is a payments bank?
They operate as a banking entity that offers regular banking facilities such as remittance services, cash withdrawal/deposit, net banking, third-party fund transfers and payments, transfers, purchases for mobile.
Payments bank however, operate on a much smaller scale compared to regular banks. They do not involve any credit risk. Their objective is to reach out to the underbanked population of India.
They carry out banking operations and can accept demand deposits of up to Rs.1,00,000; but cannot provide loans or issue any credit cards. A payments bank offers remittance services, mobile payments and also offers debit cards, net-banking and third-party fund transfers.
The Reserve Bank of India (RBI) wanted to provide an impetus to the financial inclusion initiatives. Keeping this in mind, RBI decided to create new niche categories in the finance industry by introducing ‘Payments Bank’ and ‘Small Bank’. While Small Banks provide all banking services in a limited operational area, Payments Bank provide a limited range of banking products in rural areas. As per statistics, close to 40% of India’s total population has little or no access to traditional banking services. To combat this hurdle, in the path towards financial inclusion, the licensing of Payments Bank was important.
Just like the payments bank was initiated to serve the under-banked individuals to initiate banking practices such as opening a bank account and making transactions, Loan Singh’s online lending platform creates a special online experience for salaried individuals to avail an online personal finance loan without facing traditional banking related hassles.
What makes a payments bank convenient?
The wide distribution network allows retail outlets, post offices, fuel stations, milk collection centers etc. to act as mini-branches or touch points. This leads to convenience in performing banking related operations. These banking branches are expected to be operating beyond regular banking hours.
What is the minimum balance for payments bank?
There is no need to worry about payment of any fine for not maintaining a minimum balance in the payments bank account. Traditional banks limit the zero account balance option towards savings bank deposit, which is offered to the underprivileged customer segment.
For premium customers, the benefits offered include preferential-prices products and customized investment solutions. The minimum balance set is anywhere between Rs.3,000 and Rs.1,00,000, depending on the bank.
What are the benefits of payments bank?
The payments bank offers benefits of both mobile wallets and direct bank debit. Making payments via the payments bank comes in handy towards payments online. With no constraints such as deposit limits no direct lending involved, they can aid in building your credit worthiness.
What are the documents required for payments bank?
The account can be opened with just your Aadhaar number, PAN and mobile number. To apply for a personal loan at Loan Singh, you will need the same and your latest 6 months salaried bank statement.
Indian Postal Payments Bank
India Post Payments bank is the sixth payments bank to commence operations in India. The others already on the roster include Airtel Payments Bank, Paytm Payments Bank, Fino Payments Bank, Aditya Birla Idea Payments Bank and Jio Payments Bank.
The RBI had prohibited Fino Payments Bank since May and Paytm Payments Banks since June; from adding new customers, due to non-compliance with full-KYC norms.
|Name of Bank||Interest Rate*||Coverage||Offers|
|India Post Payments Bank||4%||3250 access points across 650 districts||–|
|Jio Payments Bank||Undisclosed||Undisclosed||Undisclosed|
|Paytm Payments Bank||4%||Close to 3000 ‘Paytm ka ATM’||Free accident cover of up to 2 Lakhs in case of death|
|Airtel Payments Bank||4%||Close to 1 Lakh banking points||Free personal accident insurance of 1 Lakh|
|Fino Payments Bank||4%||Close to 425 branches with 25000 merchant points||–|
|Aditya Birla Idea Payments Bank||4%||Convert Idea’s 20 Lakh retailer base into customer touch points||Earn Rs.101 on referring the bank to 4 people & win Rs.10000 worth of Amazon vouchers|
India Post’s unmatched network of post offices and large workforce of close to 3,00,000 lakh postmen helps in greater coverage. Set up under the Department of Posts, the India Post Payments Bank can offer services through micro ATMs, mobile banking apps, messages and interactive voice response. Accounts opened using QR card and biometrics helps in secure authentications and monetary transactions.
The bank will accept deposits of up to Rs.1,00,000 per customer. The interest rate offered is 4%. PNB and Bajaj Allianz Life Insurance have been tied up to provide insurance and loans. Deposits above Rs.1,00,000 will be automatically converted to post office savings account.
About Loan Singh
Loan Singh is a digital lending platform that prides in providing online personal loan or unsecured personal loan to salaried individuals. You can apply for quick funds as an easy emergency loan which is not a bank loan. We provide a loan with the best personal loan interest rates. The instant funds, or instant loans, are loans between Rs.50,000 and Rs.5,00,000 taken for purposes such as:
- Home improvement loan/Home renovation loan
- Marriage loan/ Wedding loan
- Medical loan
- Used vehicle loan
- Consumer durable loan
- Vacation loan
- Debt consolidation loan
- Credit card refinancing loan
- Job relocation loan
- Travel loan
- Festival loan
- Gold jewelry loan
- Shopping loan
- Lifestyle loan
You can calculate your easy EMIs using our personal loan EMI calculator. We accept bank statement, PAN, and Aadhaar for quick loan approval. A bad credit score or credit report errors can lead to personal loan rejection. The ‘Loan Singh Finance Blog’ is one of the best finance blogs in India. Loan Singh is a product of Seynse Technologies Pvt Ltd and is a partner to the Airtel Online Store.
Loan Singh’s Online Presence
Loan Singh is not an anonymous digital platform. We are present on almost all leading social media platforms. All you need to do is look for us. You can find us on Loan Singh Facebook, Loan Singh Twitter, Loan Singh YouTube, Loan Singh Pinterest, Loan Singh Instagram, Loan Singh LinkedIn, Loan Singh Blogarama, Loan Singh Google Review, Loan Singh Medium, Loan Singh Reddit, Loan Singh Tumblr, Loan Singh Scoop It, Loan Singh Storify, Loan Singh Digg and Loan Singh Blogger.