Payments bank ! New way to banking ?

Payments banks are a new concept for banking conceptualized by the Reserve Bank of India (RBI). These banks can accept a restricted deposit, which is currently limited to ₹1 lakh per customer and may be increased further. These banks cannot issue loans and credit cards. Both current accounts and savings accounts can be operated by such banks. Payments banks can issue services like ATM cards, debit cards, net banking, and mobile banking. 

Bharti Airtel is the first to set up a payments bank in India with limited features and a big interest rate. The same was followed by E-commerce major Paytm which launched its own payments bank a couple of months later and then many other giants got influenced by the same. Among them companies like Reliance, Vodafone, Tech Mahindra, Sun Microsystems, Aditya Birla, etc have got licenses for launching the same in near future.

This new way of banking allows us to transact online and send and receive money online. People even can withdraw and deposit money through their respective stores. This may not be an alternative to normal banking but will attract more customers because of simplified features like payments made easy. A person just has to have a mobile number and Aadhar number to open a payments bank account. There are a lot of offers available if we transact online using a payments bank which attracts more customers. If you forgot your wallet or card, the payments bank acts as a savior through its virtual debit card. In-sort payments bank is more convenient and easy to use and is hassle-free and can be a replacement for the banking system in the future.