Payments Banks
Regulatory Framework and Limitations
Payments Banks are a differentiated banking category introduced by the Reserve Bank of India in 2015 based on the recommendations of the Nachiket Mor Committee on Financial Inclusion. They can accept deposits (up to ₹2 lakh per customer), issue debit cards, facilitate payments and remittances, and sell mutual funds and insurance products, but cannot issue credit cards, give loans, or advance credit. They are licensed under the Banking Regulation Act, 1949 and must maintain 75% of their demand deposit balances in Government Securities (SLR). Fino Payments Bank received its operating licence in 2017 and was listed on Indian stock exchanges in 2021.
- Payments Banks introduced: 2015 (based on Nachiket Mor Committee, 2014 recommendations)
- Regulatory authority: Reserve Bank of India (Banking Regulation Act, 1949)
- Deposit cap: ₹2 lakh per customer
- Permitted: Deposits, debit cards, payments, remittances, insurance/MF distribution
- Not permitted: Loans, credit cards, credit advances
- SLR requirement: 75% of demand deposits in Government Securities
- Fino Payments Bank: Listed in 2021; operates extensive Business Correspondent network in rural/semi-urban areas
● Tracked since February 27, 2026 · last seen April 25, 2026 · updates as the daily brief publishes