BANKING AFFAIRS

Detailed explanation-1: -Payment Banks are not permitted to lend to any person including their directors. 25% of its branches must be in the unbanked rural area.

Detailed explanation-2: -An ‘Unbanked Rural Centre’ (URC) is a rural centre/ village with population above 5000 that that does not have a brick and mortar structure of a bank for customer based banking transactions. Customers in Unbanked Rural Centres have no access to banking in their vicinity.

Detailed explanation-3: -The time given to a bank for opening a banking outlet is one year. If a bank fails to adhere to the requirement of opening 25% banking outlets in URC in a year, appropriate penal measures, including restrictions on opening of banking outlets in Tier 1 to 4 centres (except tier 5 and 6) shall be imposed.

Detailed explanation-4: -India currently has 6 Payment Banks namely, Airtel Payment Bank, India Post Payment Bank, Fino, Paytm Payment Bank, NSDL Payment Bank and Jio Payment Bank.