Payment Bank License

 Payment Bank License in India

 Simplifying RBI Payment Bank License for Your Business

Get expert guidance for compliance, documentation, and approvals. Launch your banking operations with confidence and efficiency.

 Why Choose Tax Pal Solutions?

•  Comprehensive RBI Licensing Assistance – From initial consultation to final approval 
• Accurate Documentation Handling – Complete, error-free submission of all forms
• Regulatory & Compliance Support – Ensure all RBI norms are strictly followed
• Streamlined Approval Process – Guidance through every step for faster approvals
•  Post-Licensing Operational Guidance – Support for smooth banking operations

 Client Ratings

What is a Payment Bank in India?

A Payment Bank is a special bank designed to offer basic financial services like deposits, payments, and remittances. Introduced by the RBI in 2014, its primary objective is financial inclusion, particularly for rural populations, low-income households, and migrant workers. Unlike traditional banks, payment banks cannot provide loans or issue credit cards, focusing instead on secure savings and digital transactions.

 Existing Payment Banks in India

• Airtel Payments Bank

• Jio Payments Bank

• India Post Payments Bank (IPPB)

• Fino Payments Bank

• NSDL Payments Bank

How Payment Banks Differ from Traditional Banks

 Powers of Payment Banks

Can Do:

• Accept deposits up to ₹2 lakh per customer

•  Issue debit/ATM cards

• Facilitate payments, remittances, and bill payments

•  Act as Business Correspondents for other banks

• Sell simple insurance & mutual fund products Handle forex for personal use

•  Onboard customers via e-KYC & Aadhaar

Cannot Do:

•  Offer loans of any kind
•  Issue credit cards
•  Invest in high-risk securities
•  Accept NRI deposits
•  Create subsidiaries for NBFC activities

Who is Eligible to Apply?

Eligible applicants include:

• Prepaid Payment Instrument (PPI) issuers
• Non-Banking Finance Companies (NBFCs)
• Corporate Business Correspondents (BCs)
• Mobile telephone companies (e.g., Airtel, Jio)
• Supermarket chains with national presence
• Public sector entities (e.g., India Post)
• Experienced individuals/professionals in finance

Note: Large industrial/business groups cannot promote a payment bank beyond 10% ownership.

 What RBI Looks For

• Sound Track Record – Successful business operations and rule compliance
• Integrity & Credentials – Honest promoters with no legal issues
• Financial Strength – Minimum capital ₹100 crore, legitimate funding sources
• Capital Adequacy Norms – Adequate capital to meet risks
• Foreign Shareholding – Max 74% to maintain local accountability

Step-by-Step RBI Payment Bank License Process

 Key Requirements

• Minimum Capital: ₹100 crore, promoter’s contribution ≥ 40% for first 5 years
• CRR & SLR Compliance: Maintain statutory reserves and invest in safe government securities
• Business Plan: Target customers, technology, financial projections, network plan
• Technology & Cybersecurity: Robust IT, data security, disaster recovery, RBI-approved systems

 Essential Documents Checklist

For Individual Promoters:

• PAN & Aadhaar, proof of address
• Professional & personal background
• Last 5 years’ financial statements & asset statement
• Details of other company directorships

For Promoting Company:

• Certificate of Incorporation, Memorandum & Articles of Association
• 5-year financial statements
• Director & shareholder list
• Shareholding pattern

• For Promoter Group:

• Corporate structure and financial statements
• Shareholding details

Post-Registration Rules

Permitted Activities: Deposits, debit cards, payment services, BC services, distribution of third-party products, cross-border remittances.
Prohibited Activities: Lending, credit cards, NRI deposits, complex financial products, NBFC subsidiaries.
Compliance: KYC/AML/CFT, prudential norms, statutory reporting, IT audits, and proper usage of “Payment Bank” in the name.