BANKING AFFAIRS

Detailed explanation-1: -The Payments Bank will be registered as a public limited company under the Companies Act, 2013, and licensed under Section 22 of the Banking Regulation Act, 1949, with specific licensing conditions restricting its activities to acceptance of demand deposits and provision of payments and remittance services.

Detailed explanation-2: -For commencing banking business, a primary (urban) cooperative bank, as in the case of commercial bank, is required to obtain a licence from the Reserve Bank of India, under the provisions of Section 22 of the Banking Regulation Act, 1949 (As Applicable to Cooperative Societies).

Detailed explanation-3: -(1) Save as hereinafter provided, no company shall carry on banking business in India unless it holds a licence issued in that behalf by the Reserve Bank and any such licence may be issued subject to such conditions as the Reserve Bank may think fit to impose.]

Detailed explanation-4: -The Section 1(4)(c) of the Companies Act, 2013 expressly states that the Act is applicable to banking companies as well, to the extent that it is consistent with the Banking Regulation Act, 1949.

Detailed explanation-5: -22. Right to issue bank notes. 22A. Non-applicability of certain provisions to digital form of bank notes.