The Reserve Bank of India barred Paytm Payments Bank ltd. from offering all its core services from March 2024.
Feature | Payment bank | Commercial bank |
Deposits | Maximum limit is set up to Rs 1 lakh | No restrictions. |
Minimum capital: | A minimum capital of Rs 100 crore, with promoters contributing at least 40% of the capital. | Commercial banks, meanwhile, need to have Rs 500 crore as its paid-up voting equity capital. |
Minimum balance:. | They are zero balance accounts there is no minimum balance required | Many commercial banks require you to have a minimum balance in your account. Failure to do so may result in a penalty |
Loans and credit: | A payments bank is not allowed to give any form of loan or issue a credit card, which is also a form of unsecured personal loan. | No such Restrictions |
Government securities | 75% of the total Demand Deposits needs to be invested in Government Securities | Maximum 22% needs to invest in Government securities |
News Source: The Indian Express
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