Jio Payments Bank begins its operations

Jio Payments Bank commenced its banking services on 3rd April 2018.

Reliance Industries Ltd was one of the 11 applicants which were issued in-principle approval for setting up a payments bank in August 2015.

Telecom major Bharti Airtel was the first to begin payment bank services in November 2016.

Paytm founder Vijay Shekhar Sharma promoted Paytm Payments Bank began operations from May 2017 last year while FINO Payments Bank Limited kicked-off in in June last year.
Birla group's Aditya Birla Idea Payments Bank was the latest in this space whose operations were started from February 22 this year.

Payments banks are being promoted by the Reserve Bank to further financial inclusion by giving services such as small savings accounts, payment or remittance services to migrant labour workforce, low income households, small businesses and unorganised sector entities as well as other users.

While, the Department of Posts, which also got a license for a payment bank is yet to start its services formally, who is running services on pilot basis currently.

What is Payment Bank?
Payments banks is a new model of banks conceptualised 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 account and savings accounts can be operated by such banks. Payments banks can issue services like ATM cards, debit cards, net-banking and mobile-banking.

On 19 August 2015, the Reserve Bank of India gave "in-principle" licenses to eleven entities to launch payments banks.

Aditya Birla Nuvo
Airtel M Commerce Services
Cholamandalam Distribution Services
India Post
Fino PayTech
National Securities Depository
Reliance Industries
Vodafone M-Pesa
Tech Mahindra
Sun Pharmaceuticals

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