RBI has issued a new set of guidelines for licensing small Payment Banks.
The essence of the new rules is that it will open the doors for Telecom operators, Super Market Chains, and NBFCs to enter Banking in a limited way.
These small “Payment Banks” can accept deposits upto Rs 1 lakh but cannot give loans. They need to invest their money only in Government Bonds.
Though these entities will be called “Banks”, these will be functioning more like “Digital Wallet Keepers”. Minimum capital will be Rs 100 crores
Presently RBI has sought views from interested parties including public.