Payments Banks
Origin, Definition, and Regulatory Framework
Payments banks are a differentiated category of banks introduced by the Reserve Bank of India based on the recommendations of the Committee on Comprehensive Financial Services for Small Businesses and Low Income Households, chaired by Dr. Nachiket Mor, which submitted its report in January 2014. The RBI issued final licensing guidelines in November 2014, and the first payments bank licences were granted in August 2015. The RBI grants licences under Section 22 of the Banking Regulation Act, 1949.
- Nachiket Mor Committee: constituted September 2013, report submitted January 2014
- RBI licensing guidelines: November 2014; first licences granted August 2015
- Licensing authority: Section 22 of the Banking Regulation Act, 1949
- Minimum paid-up capital: ₹100 crore
- Capital Adequacy Ratio (CAR) requirement: minimum 15% of risk-weighted assets (Tier I ≥ 7.5%)
- Maximum deposit per customer: initially ₹1 lakh (may be raised by RBI based on performance)
- Eligible promoters: existing non-bank prepaid payment instrument (PPI) issuers, mobile telephone companies, supermarket chains, real sector cooperatives, public sector entities, NBFCs, and individuals/professionals
● Tracked since February 27, 2026 · last seen April 25, 2026 · updates as the daily brief publishes
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