A Payment Bank is a contemporary and a rising concept in the world banking scenario. Payment Bank is an Indian new model of banks conceptualized by the Reserve Bank of India (RBI). With the advancement in technology and development in financial studies, payment banks have stormed the Indian and other South Asian markets. Payment Bank is a form of e-payment systems or mobile payment system.
Payment Bank is a comprehensive financial service or a special bank, which are expected to reach customers mainly through their mobile phones rather than traditional bank branches. A payment bank can only receive deposits and provide remittance. It cannot carry out any lending activities.
This bank is targeted to widen the spread of payment and financial services to small business, low-income household, migrant labor workforce in a tech-friendly environment.
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