Budget 2014 has touched a new concept called Payment Bank . These are different type of Bank and as per the concept will not be like traditional Bankes doing universal Banking
If this idea is taken forward by RBI , by issing guidelines very soon we can see a different category of Bankers who will not compete with the main stream Bankers
The payment banks framework was first mooted by a committee constituted by RBI to provide services for small business and low-income households. The panel's recommendations that payment banks invest in government securities alone and these entities be barred from lending
As per the initial thought payment bank should not be allowed to keep balances exceeding Rs 50,000 per customer. Also, these banks should only invest in government securities with durations of up to three months. If the bank offers fixed-deposit products, it has to offer nine per cent for deposits with a maturity period of a year, similar to other banks.
The commercial viability of such type of Bank is being talked about in the Banking circle . AS RBI has mooted this idea they must be having some definite plan to make it successful .
Let us wait & watch for the detailed guidelines when it is announced
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