No decision on setting up of 'Payments Banks' yet: Rajan

Tags: Rajan, Banking
A decision on setting up 'Payments Banks' or specialised banks to provide services to small businesses will be taken only after looking into various aspects including arbitrage issues, RBI governor Raghuram Rajan said today.

"At this point there is no decision to move forward. We will look at it in great detail, including what value it brings, the viability as well as whether it presents arbitrage opportunities vis-a-vis the Schedule commercial banks," he told reporters on the sidelines of Nasscom India Leadership Summit here.

Rajan said only after looking into all issues, will the RBI firm up views on whether to "move forward and if so, under what structures".

He was replying to a question related to setting up of such banks.

A RBI constituted panel on financial inclusion headed by Nachiket Mor had recommended the setting up of the payments banks in order to deepen access to finance.

It advocated setting up of 'Payments Banks' to provide payment services and deposit products to small businesses and low-income households with a maximum balance of Rs 50,000 per customer. These banks, it said, can be set up with minimum capital requirement of Rs 50 crore, one-tenth of the Rs 500 crore required for a full-service bank.

Mor, whose report has set a target of having a bank extension within 15 minute walking distance for a citizen anywhere across the country, had later said it was not an uphill task.

In his address to the gathering, Rajan made several references to the recommendations of Mor panel, but underlined that the RBI is yet to take a call on their implementation.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • E-auction and eventual privatisation of coal industry are welcome steps

    The government’s decision to privatise the scam-ridden coal industry through a presidential ordinance will eventually end the monopoly of public sec

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Tushar Gandhi

Sustainable model for rural sanitation

Prime minister Narendra Modi has promised to build a toilet ...

Rajgopal Nidamboor

Synchronous balance is vital for one and all

Imagine that you are playing an electronic game, or actually ...

Shona Adhikari

When women to birds become a painter’s muses

This week the focus is on renowned artist Amitabha Banerjee, ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture