Payment Banks & Small Finance Banks Can Now Undertake Govt. Agency Business: RBI
A new era is about the begin where Scheduled Payment Banks and Small Finance Banks are being allowed to undertake government agency business as an agent of RBI. The decision has been announced by RBI and it has been take by Ministry of Finance, Govt. Of India where their primary motive is to offer better banking to customers through these private sector scheduled banks as well as to reach the banking services to the rural people through small steps.
However, RBI has imposed a set of restrictions to the banks and they thus they cannot be an alternative to a main stream bank. But, definitely this option will benefit a big number of people who are cannot afford those complicated baking norms of main stream bankers and thus stay beyond several benefits.
At the outset, RBI has listed few names of selected Payment Banks and Small Finance Banks like Paytm, Fino, Shivalik, Suryoday and so on. Though it is believed that based on the report of this pilot project, soon RBI may include several other small banks which can be proved as a revolution for the rural people, specially the farmers, unrecognized industries, micro and small business.