A top official of payments banks industry on September 6 pitched for more rule relaxations saying that these entities should be allowed to offer more products such as giving small loans to make a bigger impact on the society.
"Our argument has been that we are able to transform and impact far more lives if we are allowed to micro lend," said Anubrata Biswas, managing director and chief executive director of Airtel Payments Bank.
Biswas was speaking at Global Fintech Fest 2023.
Biswas further said payment banks could well be placed to serve India if payment banks are allowed to offer more deeper products.
According to the Reserve Bank of India's (RBI) guidelines, payment banks are not permitted to lend to any person, including their directors.
However, they may advance loans to employees from their own funds, as per board-approved policy outlining the caps on such loans.
Additionally, he said in the market there are two categories of payment banks, one would taken a hard call on investing and building scale over a period of time.
The RBI issued payment bank licences to 11 entities from 2016 to 2017. Only six are operating at present: Airtel Payments Bank, Paytm Payments Bank, India Post Payments Bank, Fino Payments Bank, NSDL Payments Bank and Jio Payments Bank.
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