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Payments bank

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payments bank ppt

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Payments bank

  1. 1. 1
  2. 2. Topic Outline  Introduction -What is a Payment Bank? -Structure -Features  Birth Of Concept - The Nochiketa Mor committee -Financial Inclusion  Benefits  Challeges  Growth  Impact On The Society  Conclusion - 2
  3. 3. 3 On 19th August 2015, The Reserve Bank of India gave “In-Principle” License to eleven entities to launch payment bank. These are : 1. National Securities Depository Limited 2. Reliance Industries 3. Aditya Birla Nuvo 4. Airtel M commerce 5. Department of Post 6. Fino Paytech 7. Tech Mahindra 8. Vodafone M - Pesa 9. Cholamandalam distribution Services 10. Paytm 11. Sunpharma In Recent News
  4. 4. What is Payment Bank? O These are new stripped down type of banks , which are expected to reach customers mainly through their mobile phones rather than traditional bank branches. O They are allowed to undertake only certain restricted banking functions that the Banking Regulation Act of 1949 allows. 4
  5. 5. Structure Of Payments Bank Rs.100 Cr is the minimum capital Maintain 75% of deposits on Govt. bonds Maintain 25% of deposit in Other banks Have a atleast 26% investment by Indians Can only accept CASA deposit Liability should not exceed 20 times of its net worth Have 25% of branches in unbanked areas 5
  6. 6. Features Of Payments Bank 6 Who Can Promote? How do they earn? Prepaid card issuers, Telecom Companies, NBFC’s, Business correspondents, Supermarket Chains, Corporates, Realty sector co- ops & PSUs  RBI allows these bank to invest 75% in govt. Secuirity 25% in other Bank  Charged 1 or 2% on normal cash transfer  No risk for losses on NPAs  Play on Volume by attach million of customer
  7. 7. Features Of Payments Bank 7 O 1 Lakh deposit in one acc O Offer Internet Banking O Sell Mutual Fund, Insurencre, Pension O Offer Bill Payment services for customer O Have business Correspondents O Offer credit card O Extend Loan O Handle cross Border Remittance O Accept NRI deposit Do’s Dont’ s
  8. 8. Birth of the Concept 8 The payment bank cames into existance as a result of Nochiketa more Comitte Officially known as “Committee on comprehensive Financial services for Small business and low Income House hold” Formed by the RBI governopr raghuram rajan on 23 sep-2013 This committee had submiytted its Report in January 2014 and had recommended, among other things, Setti9ng up of the small bank and payment bank
  9. 9. Benefits They offer 9 Service Charge will come down No cap to maintain minimum Balance RBI rate cut Benefit Payment Banks may make handling cash a lot easier
  10. 10. Growth  SBI will take off in 30% of RIL Proposed Bank  Bharti Airtel India s largest telecom operator plan to give 19.9% to Kotak Mahindra Bank  Aditya Birla NUVO ltd has tied up with Idea Cellular with 49% stake 10
  11. 11. Impact On the Society Need to introduce new product and new Application Increase their customer Mobile phone transaction still has opportunity to penetrate rural India with alternate methods for transaction 11 “Payments Bank will change the way people think, Change the way they keep the money, where they keep their money, the way they pay”
  12. 12. Conclusion  These bank targeted those masses who cannot afford to visit branch for carrying out transactions by providing them basic banking facilities through mobile platform  They will leverage the huge volume of transactions for gaining profit  They will face challenges like any other venture but if successful , the payment bank promise to change the banking scenario in India and will allow the govt. to achieve its goal of financial inclusion. They will also offer competition to the existing bank and more competition is good for the economy as whole. 12
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