Payments banks is an Indian new model of banks conceptualized by the Reserve Bank of India. These banks can accept a restricted deposit, which is currently limited to ₹2,00,000 per customer and may be increased further up to Rs. 5,00,000. These banks cannot issue loans and credit cards to anyone. Payments banks are similar to commercial banks as they also carry on the work of accepting deposits, sending money, sending money from mobile phones, making payments, and issuing Debit Cards (ATM cards).
To open a payments bank, a minimum capital of Rs. 100 crore is required and any Non-Banking Financial companies (NBFCs), corporate business correspondents, mobile phone companies, supermarket chains, and public sector bodies are eligible to start a Payments Bank. The main objective of payments banks is to widen the spread of payment and financial services to small businesses, low-income households, and the migrant labor workforce in a secured technology-driven environment.
In the year 2013, the Reserve Bank of India (RBI) formed a committee for the benefit of small-scale businesses and to provide banking facilities for the low-income people of the country. The chairman of the committee was Dr. Nachiket Mor. After the formation of this committee, banking facilities reached as many people as possible as expected and decided. In the year 2014, the committee filed its report suggesting the creation of Payments bank or specialized banks aimed for the benefit exclusively for the low-income group of people, and within January 1, 2016, they made it compulsory that every citizen of the country must and should have a bank account of their own.
The interesting good news is that people having a bank account in Airtel Payments Bank with deposits of more than Rs. 1 lakh will now get interested at the rate of 6% per annum which was earlier up to 5.5% per annum on one-year FD. In Spite of the ongoing pandemic situation, the Airtel Payments Bank has announced such happy and relaxing news.
This particular decision taken by the RBI has been a relief to the lower income group families since most of them have either lost their current job or are unable to find one. And the RBI has also increased the deposit limit up to Rs. 2 lakh. These banks have been demanding to increase the limit for a long time. The government has increased the deposit insurance limit of deposits in banks to Rs. 5 lakh recently. People who do not have an account in Airtel Payments Bank can open an account now easily.
The procedure to open an account in Airtel Payments Bank is as follows:
- Firstly, open the Airtel Thanks app on your smartphone or visit their website.
- Next, enter your mobile phone number.
- Choose any proof of identity (Aadhaar card, PAN card, Voter ID, or Driving License).
- Enter the number of the selected proof of identity whether an Aadhaar card, PAN card, Voter ID, or Driving License based on what you selected.
- You will receive an OTP, verify the same.
- After following all the above steps, you have successfully created your Airtel Wallet Account.
However, there are fraudsters everywhere when it comes to keeping money in the payments bank. Off late, thugs are trying to scam the people by sending a few links that will completely empty the bank account. The Union Government, the private companies as well as the consumer affairs department along with the Ministry of Electronics and Information Technology are spreading the information regarding the fraudsters. It is also urged that none of the customers should share One Time Password (OTPs) on call if the Payments Bank asks.
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