There are two kinds of banking licenses that are granted by Reserve Bank of India –Universal bank license and differentiated bank license. Payment Banks comes under a differentiated bank license since it cannot offer all the services that a commercial bank offers.
- recommendations of the Nachiket Mor Committee.
- registered as a public limited company under the Companies Act 2013 and licensed under Section 22 of the Banking Regulation Act 1949.
- minimum paid-up equity capital for payments banks shall be Rs. 100 crores.
Restricted activities
- It can not issue loans and credit cards.
- It can not accept time deposits or NRI deposits.
- It can not set up subsidiaries to undertake non-banking financial activities.