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RBI favours differentiated banks,one for low-income households

Mumbai: A panel set up by the RBI has called for establishing differentiated lenders, including one for small businesses and low-income households.  The bank for small businesses, called the ‘payments banks', will focus on providing
PTI January 07, 2014 23:38 IST
PTI
Mumbai: A panel set up by the RBI has called for establishing differentiated lenders, including one for small businesses and low-income households.  The bank for small businesses, called the ‘payments banks', will focus on providing primary services to the people, the panel on financial inclusion said in its report released today.

“Given that their primary role is to provide payment services and deposit products to small businesses and low-income households, they will be restricted to holding a maximum balance of Rs 50,000 per customer,” the report by the Committee on Comprehensive Financial Services for Small Businesses and Low Income Households said.  The multi-member panel is led by ex-ICICI Bank Executive Director Nachiket Mor.

It said payments banks shall have a minimum capital requirement of Rs 50 crore and maintained that existing lenders should be allowed to have payments banks as a subsidiary.