The RBI has created a stunted business model by which payment banks are supposed to shoulder the noble objective of financial inclusion without being able to make much money.
Focus to be on unbanked areas; initial capital is set at Rs 100 crore; India Post can apply.
This single amendment, unfortunately, overshadows much of the Budget's promise, explains Harsh Roongta.
All 'grameen dak sevaks' in rural post offices will be given handheld devices by March 2017.
The value of the rupee, which has slipped to the 92 per dollar mark, does not accurately reflect India's stellar economic fundamentals, the Economic Survey said on Thursday.
India's third-largest telecom operator Vodafone Idea (Vi) has secured a 10-year breather on adjusted gross revenue (AGR) payments from the Department of Telecommunications (DoT). This is expected to ease pressure on its balance sheet and enable the company to raise bank debt for capital expenditure.
Ask rediffGURU Naveenn Kummar your insurance mutual fund and personal finance-related questions.
The RBI has flagged concerns over rising volatility in gold prices and advised lenders to exercise caution in the gold loan segment.
'This marks a turning point for Paytm, with the regulatory environment looking much clearer than it has been in the last two years.'
While payments banks surely lose money, their operating ratios were looking better in 2017-18 compared to the year before. This implies that as customer volumes start picking up, the business models may perk up too, says R Jagannathan.
Non-resident individuals (NRIs) have also been allowed to apply for the niche banking licence, provided they plan to return to India.
Kotak Mahindra Bank to have a 19.9% stake in the proposed banking venture.
Unbanked customers can expect easier access to banking.
CEO Shashi Arora discusses his roadmap for Airtel Payments Bank with Karan Choudhury.
Wipro will be implementing the core banking solution for Paytm.
The Union Budget on Sunday proposed a tax holiday till 2047 for foreign companies that provide cloud services to customers globally using data centres located in India, signalling the government's push to make the country a major hub for AI and digital infrastructure.
The Union Budget on Sunday proposed a tax holiday till 2047 for foreign companies that provide cloud services to customers globally using data centres located in India, signalling the government's push to make the country a major hub for AI and digital infrastructure.
The previous largest weekly decline was recorded in the week ended November 15, 2024.
PhonePe on Friday said it has got the final authorisation from the Reserve Bank of India (RBI) to operate as an online payment aggregator. With RBI authorisation in place, PhonePe will be able to expand its reach and tap into online merchants, with a particular focus on small and medium businesses (SMEs) across the country, according to a release.
After two years of strong gains, smallcap stocks fell sharply in 2025, but the correction may be setting up opportunities for long-term investors.
Currently, only three have completed more than six months of operation in the space - Fino Payments Bank, Airtel Payments Bank and Paytm
While a wallet is convenient, payments bank offers interest on deposits and ATM facility.
Experts contend that this setback, even if temporary, could put the company at a disadvantage to its competitors in acquiring new customers.
'Reinvention is not a hugely difficult task. With technology as available today, you can reinvent yourself pretty quickly.'
India has managed high government debt-to-GDP, a slowing domestic revenue engine, lower household savings and a more hostile geopolitical environment separately in the past. But together, they threaten to undo the growth narrative on which today's optimism rests, warns Debashis Basu.
'There are no additional benefits for banks and market participants to use CBDC...'
In August, RBI allowed 11 business houses to start a payments bank.
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Of the 11 licence holders, only eight remain in the fray as concerns about profitability and rising competition are making them think twice before jumping in.
Jaitley said banking network is expanding hugely and the health of banks reflects on the challenges for the economy.
Payment banks may not be viable option to attain financial inclusion.
It will carry out most banking operations like accepting deposits but can't advance loans or issue credit cards.
Telecoms investor Aditya Birla Nuvo Ltd and retailer Future Group were among the first big names to apply for licenses to run so-called payments banks
Bharti Airtel aims to leverage its 180 million plus digital service customers and its wide presence in rural areas to grow its payment bank business. "We are well placed as we can leverage the 180 million plus customers we have across our digital assets. "We offer a plethora of services such as lucrative interest rates, gift cards, FASTag, telecom recharges, payments and debit cards. "Our large merchant base of more than eight million allows us to drive both engagement and monetisation.
Regulators will need to allow the model to evolve to allow profits to flow, says Una Gulani.
'We have seen that stablecoins lack the basic attributes of money, their advantages are neither unique nor unambiguous and their risks are all too real.'
Budget 2026 sticks to fiscal discipline, shuns populist measures despite five key state elections coming up, but ends up rattling stock markets with a higher transaction tax on derivatives trading.
Under the defence partnership, India and the UAE are eyeing defence industrial collaboration and cooperation in advanced technologies, cyberspace training, special operations, interoperability of their militaries and counter terrorism.
A total of 41 companies had applied for the permit
The Reserve Bank of India's (RBI's) Payment Systems Report highlighted that between 2019 and 2024, credit card transactions doubled in volume and almost tripled in value. During the same period, however, debit card transactions witnessed a decline, both in volume and value.
Most public sector banks, flush with deposits now, offer 3-4% interest on savings deposits, while a few private sector banks go up to 6%.
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