India has embarked on a national campaign to digitalise
daily payment transactions but some small-scale regulatory
moves needed to be made to enable new payment platforms to take
In September 2013, the Reserve Bank of India (RBI) set up a
committee to study comprehensive financial services for small
businesses and low-income households. This led to the
introduction of specialised banks or payments banks to cater to
them, with the central bank granting in-principle approval to
11 applicants who set up payments banks by August 19 2015.
However, market participants argue the RBI should increase
deposit limits for payment banks, and dilute listing
requirements and mandatory shareholding requirement of 40% to
be retained for the first five years if it is to boost the
payment bank business.
"Though the small accounts with payment banks are subject
to simplified know your customer, anti-money laundering and
combating the financing of...