{"id":19528,"date":"2020-11-12T15:12:10","date_gmt":"2020-11-12T09:42:10","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=19528"},"modified":"2025-02-28T17:53:47","modified_gmt":"2025-02-28T12:23:47","slug":"documents-required-for-payment-banks-license-india","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/documents-required-for-payment-banks-license-india\/","title":{"rendered":"Know the List of Documents Required for Payment Banks License"},"content":{"rendered":"\n<p class=\"has-drop-cap\">A payment bank is a new form of the financial institution conceptualized by the RBI. These banks are permitted to accept a deposit of Rs 100,000 per customer. These financial institutions don\u2019t hold the right to issue credit cards or loans. However, they are allowed to issue debit or ATM card and render mobile banking. This article will unveil some facts related to documents required for Payment Bank license.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/documents-required-for-payment-banks-license-india\/#Who_can_Carry_out_Business_Activities_Related_to_Payment_Bank\" >Who can Carry out Business Activities Related to Payment Bank?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/documents-required-for-payment-banks-license-india\/#Documents_Required_for_Payment_Bank_License\" >Documents Required for Payment Bank License<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/documents-required-for-payment-banks-license-india\/#What_are_the_Prime_Features_of_the_Payments_Banks\" >What are\nthe Prime Features of the Payments Banks?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/documents-required-for-payment-banks-license-india\/#Conclusion\" >Conclusion&nbsp;<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_can_Carry_out_Business_Activities_Related_to_Payment_Bank\"><\/span>Who can Carry out Business Activities Related to Payment Bank?&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The primary goal of these banks is to broaden the access of\nbanking services to underprivileged individuals, low-income households, and\nsmall scale enterprises in a protected technology-driven environment. The RBI\nseeks to provide seamless financial services to all the remote areas of the\ncountry by underpinning payment banks. <\/p>\n\n\n\n<p>It aims to revamp the existing economy by incorporating payment gateway for all sorts of transactions.&nbsp;These are the entities that can carry out Business Activities Related to Payment Bank. Those are as follows:-<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img decoding=\"async\" width=\"1024\" height=\"512\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/Entities-Related-to-Payment-Bank-1024x512.png\" alt=\"Business Activities Related to Payment Bank\" class=\"wp-image-19529\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/Entities-Related-to-Payment-Bank-1024x512.png 1024w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/Entities-Related-to-Payment-Bank-300x150.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/Entities-Related-to-Payment-Bank-768x384.png 768w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/Entities-Related-to-Payment-Bank.png 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documents_Required_for_Payment_Bank_License\"><\/span><strong>Documents Required for Payment Bank License<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following are the documents required for Payment Bank License concerning Individual promoters, Company Promoting the Bank &amp; companies and members in the promoter group.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Documents and Information on the\nIndividual Promoter<\/h3>\n\n\n\n<ul>\n<li>Promoter\u2019s name, address, DOB, PAN Number, Guardian\u2019s names, branch detail, Bank Details (such as account number, IFSC code), and credit facilities.&nbsp;<\/li>\n\n\n\n<li>Comprehensive details regarding the experience and working background of the individual promoter, the Company\u2019s track record and financial standing, Information about the promoter\u2019s interest in several companies\/entities, etc.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Documentation\nAnd detail On The Company Promoting The Bank<\/strong><\/h3>\n\n\n\n<ul>\n<li><a href=\"https:\/\/corpbiz.io\/learning\/alteration-of-memorandum-of-association-moa\/\"><strong>Memorandum of Association<\/strong><\/a> as well as Articles of Association, <\/li>\n\n\n\n<li><a href=\"https:\/\/corpbiz.io\/income-tax-return-filing\" title=\"Income Tax Return Filing\"><strong>Income Tax Return<\/strong><\/a> for last three years, <\/li>\n\n\n\n<li>The financial statement of the entity for the past five years including the vital economic indicators<\/li>\n\n\n\n<li>Shareholding pattern of the entity.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Documentation\nand details on the companies and members in the promoter group<\/strong><\/h3>\n\n\n\n<ul>\n<li>Name of the members and companies, and corporate structure of all the companies, shareholding\u2019s details.&nbsp;&nbsp;<\/li>\n\n\n\n<li>Names of the individuals and entities, management, and corporate structure of all the entities, details of shareholding, a pictorial representation of the organization structure, total assets, and shareholding of the companies possess.&nbsp;<\/li>\n\n\n\n<li>Yearly reports of the last five years of the group companies.&nbsp;<\/li>\n\n\n\n<li>Name of all the entities and individuals in the promoter group ( financial, non-financial, foreign entities) along with the following details&nbsp;<\/li>\n\n\n\n<li>Incorporation date,<\/li>\n\n\n\n<li>List of the activities performed by the entity,<\/li>\n\n\n\n<li>Address related to the Registered Office,&nbsp;<\/li>\n\n\n\n<li>PAN and TAN Number,&nbsp;<\/li>\n\n\n\n<li>CIN Number,&nbsp;<\/li>\n\n\n\n<li>Bank Account number,<\/li>\n\n\n\n<li>Tax liabilities encounter the entity.&nbsp;<\/li>\n\n\n\n<li>Branch detail of the entities as well as account information.&nbsp;<\/li>\n\n\n\n<li>Stock listing detail of all the entities.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>After arranging the said documents, the applicant requires\nfilling an application to the Chief General Manager of Reserve Bank regarding\nthe issuance of the license. The application shall be examined by the External\nAdvisory Committee.<\/p>\n\n\n\n<p>During the evaluation process of application, the committee might ask the applicant to validate the authenticity of certain documents or details. After successful verification, the Reserve Bank shall give the <a href=\"https:\/\/corpbiz.io\/payment-bank-license\" title=\"Payment Bank License\"><strong>Payment Bank License<\/strong><\/a> to the applicant. Also, the verified applicant shall be displayed on the <strong>RBI\u2019s official website<\/strong><sup><a href=\"https:\/\/www.rbi.org.in\/\"><strong>[1]<\/strong><\/a><\/sup>.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Prime_Features_of_the_Payments_Banks\"><\/span><strong>What are\nthe Prime Features of the Payments Banks?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Payment banks and conventional banks are almost identical on several aspects, yet Payment banks work under certain limitations such as;&nbsp;<\/strong><\/p>\n\n\n\n<ul>\n<li>The payment banks are allowed to accept a\ndeposit of up to one lakh rupees. Keep in mind that this is the maximum\nthreshold limit for these banks.<\/li>\n\n\n\n<li>Payment banks allowed to issue debit or ATM\ncards but cannot issue a credit card.<\/li>\n\n\n\n<li>Payment banks allow customers to open both savings\nand current accounts.<\/li>\n\n\n\n<li>Payment banks cannot offer a credit facility to\nthe customers.&nbsp;<\/li>\n\n\n\n<li>Payment banks don\u2019t have the authority to accept\ndeposits from the individuals residing in an overseas location.&nbsp;<\/li>\n\n\n\n<li>Payment banks shall reserve the right to make a\npayment on a personal basis and receive remittances from the overseas location\non the current accounts.&nbsp;<\/li>\n\n\n\n<li>Like traditional banks, Payment banks also need\nto procure a fund in the form of a Cash Reserve Ratio (CRR) with Reserve Bank.<\/li>\n\n\n\n<li>Payment banks are liable to invest a minimum of\nseven five percent of its demand deposit in security bill or government\ntreasury with a maturity period of up to 1 year and possess a maximum of\ntwenty-five percent in fixed and current deposits with other banks for\noperational banks.&nbsp;<\/li>\n\n\n\n<li>Payment banks allow customers to pay utility bills such as gas, electricity, and water bills through a secured <strong><a href=\"https:\/\/corpbiz.io\/payment-gateway-license\" title=\"Payment Gateway License\">payment gateway<\/a><\/strong>.&nbsp;<\/li>\n\n\n\n<li>Bifurcation of the payment banks cannot be\npossible, i.e. they have steak around with a single branch to carry on their\nactivities.<\/li>\n\n\n\n<li>Payment bank under RBI registration can operate\nas a partner with other traditional banks and offer mutual funds, insurance\nproducts, and pension products.&nbsp;<\/li>\n\n\n\n<li>Payment banks are liable to add the term\n\u201cPayment Bank\u201d in their name as it is a legal prerequisite.&nbsp;<\/li>\n\n\n\n<li>Payment banks can provide services related to\nmobile and internet banking.<\/li>\n\n\n\n<li>Payment banks can represent any banks but under\nthe strict guidelines of the Reserve Bank.&nbsp;<\/li>\n\n\n\n<li>The payment banks are legally eligible to accept\nremittances from many banks via payment mechanism such as NEFT\/IMPS\/NEFT<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Payment banks are conceptualized by Reserve Bank a few years\nback to promote cashless banking in the country. The deployment of the payment\nbanks requires the incorporation of information technology where the monetary\ntransaction can occur can within a secured framework. The existence of a\npayment bank depends on the IT infrastructures. Payment banks breathe life into\nthe Indian financial sector because more than 55% of India\u2019s population still lacks\naccess to banking services. <\/p>\n\n\n\n<p>With such facilities at disposal, the Indian citizen can address the banking needs with ease as far as deposit or transaction of money is concerned. Connect with <a href=\"https:\/\/corpbiz.io\/\"><strong>CorpBiz<\/strong><\/a>&#8216;s expert in case you want some additional help regarding documents required for Payment Bank license.&nbsp; <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/complete-outlook-of-payment-bank-license-online-in-india\/\">\nA Complete Outlook of Payment Bank License\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A payment bank is a new form of the financial institution conceptualized by the RBI. These banks are permitted to accept a deposit of Rs 100,000 per customer. These financial institutions don\u2019t hold the right to issue credit cards or loans. However, they are allowed to issue debit or ATM card and render mobile banking. [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":19559,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[329],"tags":[1212],"acf":{"service_id":"73"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":5301,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/19528"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=19528"}],"version-history":[{"count":16,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/19528\/revisions"}],"predecessor-version":[{"id":68946,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/19528\/revisions\/68946"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/19559"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=19528"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=19528"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=19528"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}