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NSDL Payments Bank has commenced operations as a payments bank

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NSDL Payments Bank Limited started operations on Monday, the RBI said. It is the seventh payments bank since the central bank gave approval in principle to 11 applicants in August 2015. 

30th Oct,2018. RedNewswire/-

Airtel Payments Bank, India Post Payments Bank, FINO Payments Bank, Paytm Payments Bank, Aditya Birla Idea Payments Bank and Jio Payments Bank, are already in operation.

Fino Payments Bank, one of India’s first payments banks, was allowed to open new accounts by the RBI after it submitted a compliance report to the central bank. Fino Payments Bank had been unable to enrol new customers since the end of May after the RBI found the bank to be non-compliant with the operational guidelines laid down by it.

These banks can accept demand deposits, and issue ATM/debit cards, among other activities. It can accept a restricted deposit, which is currently limited to ₹1 lakh per customer. However, these banks cannot extend loans or issue credit cards.

With the launch, Vodafone m-Pesa Ltd is the only applicant left to set up its payments bank. Three applicants have surrendered their licences.

NSDL Payments Bank Limited has commenced operations as a payments bank with effect from October 29, 2018. The Reserve Bank has issued a licence to the bank under Section 22 (1) of the Banking Regulation Act, 1949, to carry on the business of payments bank in India, a press release by Reserve Bank of India (RBI) stated on Monday.

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