India Post has received payments bank licence from the Reserve Bank of India to start rollout of banking operations commercially under the permit.
“India Post has received payments bank licence. The service will be launched as per schedule,” a Department of Posts official said. India Post Payments Bank is the third entity to receive payments bank permit after Bharti Airtel and Paytm.
Payments banks can accept deposits up to Rs1 lakh per account from individuals and small businesses.
The new model of banking allows mobile firms, supermarket chains and others to cater to banking requirements of individuals and small businesses. It will be set up as a differentiated bank and will confine its activities to acceptance of demand deposits, remittance services, Internet banking and other specified services.
In 2015, RBI had granted ‘in-principle’ approval to 11 entities, including Department of Posts, to set up payments banks and proposed to give such licences ‘on tap’ basis in future.