The Indian Government has said that the Reserve Bank of India (RBI) will be granting payment licences to the proposed Post Bank of India by August, PTI reported.
Commenting on the development, Minister of Communications and IT Ravi Shankar Prasad told the media, "We expect RBI to give payment bank licence to post (department) in August."
As per RBI guidelines, payment banks will offer a limited range of products such as demand deposits and remittances. They will not be allowed to undertake lending activities and will initially be restricted to holding a maximum balance of Rs 1 lakh per individual customer.
They will also be allowed to issue ATM or debit cards as also other prepaid payment instruments, but not credit cards.