The fourth payment bank, Idea Payment Bank has started functioning in India. After Airtel, Indian Post and Fino payment bank, the Aditya Birla Group initiatives has started functioning from Feburar, 22. Idea Cellular had applied for a Payments Banks license in a 49:51 joint venture with Aditya Birla Nuvo Limited. On April 03, 2017, Aditya Birla Payments Bank Limited received a license from RBI.
A payments bank is not allowed to give loans. It is authorised to accept demand deposits with a maximum balance of Rs 1 lakh per customer. It can issue debit cards but not credit cards. Besides, it can also act as a business correspondent to another bank.
The Payments Bank intends to promote a wide range of banking products & services including current and savings bank account, domestic remittances, merchant payments etc. while partnering with ABG financial services, select universal banks &financial institutions for offering range of full banking products including Demand Deposits, other related investment and Insurance products to its payments bank customer.