Banking & FinanceFinanceFinanceInFocusNews

India Post Under the Losses of Rs 15000 Cr

Sharing is caring!

Public or private, payment banks have not worked much in India. Aditya Birla Idea Payments Bank Ltd, which is a full service digital bank, has said it was winding up its operations.

India Post Payments Bank, too, is struggling to survive with mounting salary bills and scant business. Sources said the bank is awaiting the RBI nod for transformation . As a small finance bank, it can accept deposits of over Rs 1 lakh and advance loans.

Small finance banks are a type of niche banks in India. Banks with a small finance bank licence can provide basic banking service of acceptance of deposits and lending.

The Reserve Bank of India had issued guidelines for payments banks in November, 2014 for improving financial inclusion. Right from the beginning there were doubts about the viability of payments banks as the operations of these banks are very restricted. Though they are called banks, their functions are similar to those of deposit-taking companies.

SMEStreet Edit Desk

SMEStreet Edit Desk is a small group of excited and motivated journalists and editors who are committed to building MSME ecosystem through valuable information and knowledge spread.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Back to top button
%d bloggers like this: