Payments bank - wikipedia Payments bank Part of a series on financial services Banking Types of banks Advising Banq Central Commercial Community development Cooperative Credit union Custodian Depository Direct Export credit agency Investment Industrial Merchant Mutual savings National Offshore Participation Postal savings Private Public Retail Savings Savings and loan Universal Bank holding company Lists of banks Accounts Cards Accounts Christmas club Deposit Money - market Savings Time deposit ( Bond ) Transaction ( checking / current ) Cards ATM Credit Debit Funds transfer Electronic bill payment Wire Cheque SWIFT Automated Clearing House Giro Terms Automated teller machine Bank regulation Loan Money creation Bank secrecy Ethical banking Fractional - reserve banking Islamic banking Private banking Related topics Financial market ( participants ) Corporate finance Personal finance Public finance Financial law Financial regulation List of banks Finance Markets Bond Commodity Derivatives Foreign exchange Money Over-the - counter Private equity Real estate Spot Stock Participants Investor institutional Retail Speculator Instruments Bond Cash Collateralised debt obligation Credit default swap Time deposit ( certificate of deposit ) Credit line Deposit Derivative Futures contract Indemnity Insurance Letter of credit Loan Mortgage Option ( call exotic put ) performance bonds Repurchase agreement Stock Security Syndicated loan Synthetic CDO Corporate Accounting Audit Capital budgeting Credit rating agency Risk management Financial statement Leveraged buyout Mergers and acquisitions Structured finance Venture capital Personal Credit / Debt Employment contract Financial planning Retirement Student loan Public Government spending Final consumption expenditure Operations Redistribution Transfer payment Government revenue Taxation Deficit spending Budget ( balance ) Debt Non-tax revenue Warrant of payment Banks and banking Central bank Deposit account Fractional - reserve banking Loan Money supply Lists of banks Bank regulation Banking license Basel Accords Bank for International Settlements Financial Stability Board Deposit insurance Separation of investment and retail banking Regulation Financial law International Financial Reporting Standards ISO 31000 Professional certification Fund governance Economic history Private equity and venture capital Recession Stock market bubble Stock market crash Accounting scandals 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 can not 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. Bharti Airtel set up India 's first live payments bank. Contents 1 History 2 Regulations 3 Banks 4 See also 5 References 6 External links History On 23 September 2013, Committee on Comprehensive Financial Services for Small Businesses and Low Income Households, headed by Nachiket Mor, was formed by the RBI. On 7 January 2014, the Nachiket Mor committee submitted its final report. Among its various recommendations, it recommended the formation of a new category of bank called payments bank. On 17 July 2014, the RBI released the draft guidelines for payment banks, seeking comments for interested entities and the general public. On 27 November, RBI released the final guidelines for payment banks. In February 2015, RBI released the list of entities which had applied for a payments bank licence. There were 41 applicants. It was also announced that an external advisory committee ( EAC ) headed by Nachiket Mor would evaluate the licence applications. On 28 February 2015, during the presentation of the Budget it was announced that India Post will use its large network to run payments bank. The external advisory committee headed by Nachiket Mor submitted its findings on 6 July 2015. The applicant entities were examined for their financial track record and governance issues. On 19 August 2015, the Reserve Bank of India gave `` in - principle '' licences to eleven entities to launch payments banks. The `` in - principle '' license was valid for 18 months within which the entities must fulfil the requirements and they were not allowed to engage in banking activities within the period. The RBI will grant full licenses under Section 22 of the Banking Regulation Act, 1949, after it is satisfied that the conditions have been fulfilled. Regulations The minimum capital requirement is ₹ 100 crore. For the first five years, the stake of the promoter should remain at least 40 %. Foreign share holding will be allowed in these banks as per the rules for FDI in private banks in India. The voting rights will be regulated by the Banking Regulation Act, 1949. The voting right of any shareholder is capped at 10 %, which can be raised to 26 % by Reserve Bank of India. Any acquisition of more than 5 % will require approval of the RBI. The majority of the bank 's board of directors should consist of independent directors, appointed according to RBI guidelines. The bank should be fully networked from the beginning. The bank can accept utility bills. It can not form subsidiaries to undertake non-banking activities. Initially, the deposits will be capped at ₹ 100,000 per customer, but it may be raised by the RBI based on the performance of the bank. The bank can not undertake lending activities. 25 % of its branches must be in the unbanked rural area. The bank must use the term `` payments bank '' in its name to differentiate it from other types of bank. The banks will be licensed as payments banks under Section 23 of the Banking Regulation Act, 1949, and will be registered as public limited company under the Companies Act, 2013. Banks 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 Paytm Tech Mahindra Sun Pharmaceuticals Bharti Airtel launched India 's first live payments bank in March 2017. Paytm, India Post and Aditya Birla Idea Payments Bank have also launched services. Cholamandalam Distribution Services, Sun Pharmaceuticals and Tech Mahindra have surrendered their licenses. See also Regional Rural Bank Banking in India Small finance bank References Jump up ^ `` RBI appoints Committee on Comprehensive Financial Services for Small Businesses and Low - Income Households ''. Reserve Bank of India. 23 September 2013. Archived from the original on 2 April 2015. Retrieved 2 March 2015. Jump up ^ `` RBI releases Report of the Committee on Comprehensive Financial Services for Small Business and Low Income Households ''. Reserve Bank of India. 7 January 2014. Archived from the original on 2 April 2015. Retrieved 2 March 2015. Jump up ^ `` RBI panel suggests new set of banks for financial inclusion ''. Live Mint. 7 January 2014. Retrieved 26 July 2014. Jump up ^ `` RBI releases Draft Guidelines for Licensing of Payments Banks and Small Banks ''. Reserve Bank of India. 17 July 2014. Retrieved 2 March 2015. Jump up ^ `` RBI releases Guidelines for Licensing of Payments Banks ''. Reserve Bank of India. 27 November 2015. Retrieved 2 March 2015. Jump up ^ `` RBI releases applicants list of payment, small bank licence ''. The Hindu Business Line. 4 February 2015. Retrieved 2 March 2015. Jump up ^ `` Usha Thorat, Nachiket Mor to head RBI panels for differentiated bank licenses ''. Business Standard. 3 February 2015. Retrieved 8 March 2015. Jump up ^ `` Postal dept to use its network for proposed payment bank ''. Hindustan Times. 28 February 2015. Retrieved 2 March 2015. ^ Jump up to : `` Applicants for Payments Banks ''. Reserve Bank of India. 19 August 2015. Retrieved 20 August 2015. ^ Jump up to : `` Guidelines for Licensing of Payments Banks ''. Reserve Bank of India. Retrieved 2 March 2015. Jump up ^ `` Reliance, Airtel, nine others get RBI nod to open payments banks ''. Live Mint. 20 August 2015. Retrieved 20 August 2015. Jump up ^ https://m.businesstoday.in/story/jio-payments-bank-account-payment-paytm-airtel-sbi-reliance/1/274064.html Jump up ^ `` Know Everything about Airtel Payments Bank ''. Bharti Airtel. Retrieved 16 March 2017. Jump up ^ `` Aditya Birla Idea Payments Bank Limited commences operations ''. Reserve Bank of India. Retrieved 20 July 2018. External links How to apply for Paytm Payments Bank Retrieved from `` https://en.wikipedia.org/w/index.php?title=Payments_bank&oldid=854627425 '' Categories : Payments banks Banking in India Talk Contents About Wikipedia ಕನ್ನಡ Edit links This page was last edited on 12 August 2018, at 18 : 32 ( UTC ). About Wikipedia

Question: minimum capital requirement for payment banks in india
Answer: ₹100 crore