OpenGuide-After RBI has issued licenses for Small Finance Banks and Payments Bank ,questions have been asked about its interest rates and parent companies.The questions are mainly found in the current affairs section of banking exams .It can also be not excluded in the current affairs section of other exams such as PSc,RRB(Railway Recruitment Board) and UPSC.The table given below distinguishes between Payments Bank and Small Banks.
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Payment Banks |
Small Banks |
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Acceptance of Demand Deposits.Payments bank will initialy be restricted to holding a maximum balance of Rs 1,00,00,0 |
Providing basic banking facilities to poor and small businessman |
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Issuance of ATM/debit cards.Payment banks cannot issue credit cards |
They can issue ATM cards |
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Distribution of non-risk sharing simple products like mutual fund units and insurance products |
Distribution of non-risk sharing simple products like mutual fund units and insurance products |
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Payments bank cannot undertake lending activities |
They can undertake lending activities |
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The minimum paid up capital for Payments Bank Rs 100 cr |
The minimum paid up capital for Small Finance Bank Rs 100cr |
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Ex:Airtel Payments Bank,PaytymPayments banks,India Post Payments Bank |
Ex:Ujjivan Small Finanace Banks |