Which of the following dropped out from the list of payments banks in India?

Q.  Of the 11 companies that were given in-principle nod by the Reserve Bank of India (RBI) to set up payments banks in August, 2015, three have already dropped out. Which among the following company has dropped out?
- Published on 17 Feb 17

a. Airtel Money
b. Tech Mahindra
c. PayTm
d. Vodafone mPesa

ANSWER: Tech Mahindra
 
Of the 11 companies that were given in-principle nod by the Reserve Bank of India (RBI) to set up payments banks in August, 2015, three companies - Tech Mahindra, Cholamandalam Finance and Dilip Shanghvi-IDFC Bank-Telenor JV have dropped out.

This leaves only eight applicants - India Post, Airtel Money, Reliance Industries, PayTm (Vijay Shekhar Sharma), Aditya Birla Nuvo, Vodafone MPesa, Fino PayTech and NSDL.

Payments Bank :

Payments banks are a new model of banks conceptualized by the Reserve Bank of India (RBI).
  • These banks can accept a restricted deposit which is currently limited to INR 1 lakh per customer and may be increased further.
  • These banks cannot issue loans and credit cards.
  • Payments banks can issue services like ATM cards, debit cards online banking and mobile banking.
Regulations -
  • The minimum capital requirement is Rs. 100 crores.
  • For the first five years, the stake of the promoter should be 40% minimum.
  • The voting rights will be regulated by the Banking Regulation Act, 1949. The voting right of any shareholder is capped at 10%, which can be raised to 26% by Reserve Bank of India.
  • Any acquisition of more than 5% will require approval of the RBI.

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