Q. What do you thin will giving payment bank licenses to India post is going to make a difference? What are payment banks and how does they differ from other banks?
A. India has more than 1.55 lakh post offices out of which 1.39 lakh are in rural areas
B. Wide reach, long record of excellent service and they are already running many financial schemes
C. Wide reach and user friendliness will help in financial inclusion of country I. E. More people will now have access to financial services
1. Acceptance of demand deposits.
2. Payments bank will initially be restricted to holding a maximum balance of Rs. 100,000 per individual customer.
3. Issuance of ATM/debit cards. Payments banks, however, cannot issue credit cards.
4. Payments and remittance services through various channels.
5. Distribution of non-risk sharing simple financial products like mutual fund units and insurance products, etc.