{"id":6872,"date":"2021-07-15T08:47:52","date_gmt":"2021-07-15T08:47:52","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=6872"},"modified":"2021-07-15T08:50:02","modified_gmt":"2021-07-15T08:50:02","slug":"documents-for-payment-bank-license","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/documents-for-payment-bank-license\/","title":{"rendered":"Know the Essential Documents for Payment Bank License"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Payment\nbank is a new type of financial institution which is analysed and examined by\nthe Reserve Bank of India. These banks are allowed to accept a deposit amount\nof Rs. 1 lakh per client. These financial institutions do not hold the right to\nissue loans or credit cards. But, they are permitted to issue debit or ATM\ncards and provide mobile banking. A payment bank makes banking life better due\nto the ease &amp; flexibility they provide. Scroll down to check the vital\ndocuments for Payment Bank License in India.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3ad435d2671\" class=\"ez-toc-cssicon-toggle-label\"><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><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3ad435d2671\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/documents-for-payment-bank-license\/#Who_can_Execute_Business_Activities_Concerning_Payment_Bank\" title=\"Who can\nExecute Business Activities Concerning Payment Bank?\">Who can\nExecute Business Activities Concerning Payment Bank?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/documents-for-payment-bank-license\/#Crucial_Documents_for_Payment_Bank_License\" title=\"Crucial\nDocuments for Payment Bank License\">Crucial\nDocuments 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:\/\/swaritadvisors.com\/blog\/documents-for-payment-bank-license\/#Primary_Characteristics_of_the_Payment_Banks\" title=\"Primary\nCharacteristics of the Payment Banks\">Primary\nCharacteristics of the Payment 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:\/\/swaritadvisors.com\/blog\/documents-for-payment-bank-license\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_can_Execute_Business_Activities_Concerning_Payment_Bank\"><\/span>Who can\nExecute Business Activities Concerning Payment Bank?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nprimary objective of these payment banks is to widen the access of bank-related\nservices to needy people, low-income households, and small scale enterprises in\na safeguarded technology-driven environment. The Reserve Bank of India seeks to\ndeliver flawless financial services to all the nation&#8217;s remote areas by\nunderpinning payment banks.<\/p>\n\n\n\n<p>It\nintends to change the present economy by registering payment gateway for all\nkinds of transactions. These are the companies that can execute business activities\nconcerning the Payment Bank. And you can check the same below: <\/p>\n\n\n\n<ol><li>Non-Banking Financial Companies\n(NBFCs);<\/li><li>Supermarket Chains;<\/li><li>PPI (Prepaid Payment\nInstrument) issuers approved working under the PSS Act, 2007;<\/li><li>Companies involved in the\nTelecom Sector;<\/li><li>Real sector co-operatives owned\n&amp; regulated by Public Sector Companies.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Crucial_Documents_for_Payment_Bank_License\"><\/span>Crucial\nDocuments for Payment Bank License<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following are the vital documents for <a href=\"https:\/\/swaritadvisors.com\/payment-bank-license\" class=\"text-primary\"><strong>Payment Bank License<\/strong><\/a> regarding individual promoters, members in the promoter group and company encouraging the bank and companies.<\/p>\n\n\n\n<p><strong>Information &amp; Documents for\nPayment Bank License of the Individual Promoter<\/strong><\/p>\n\n\n\n<ol><li>Name, date of birth, address,\nPAN Number, branch detail, name of the guardian, bank details (such as IFSC\nCode and Account Number), and credit facilities of the promoter;<\/li><li>Complete details concerning the\nexperience &amp; working background of the individual promoter, the track\nrecord and financial standing of the company, information regarding the\ninterest of promoters in different companies, etc.<\/li><\/ol>\n\n\n\n<p><strong>Detail and Documentation of the\nCompany Encouraging the Bank<\/strong><\/p>\n\n\n\n<ol><li>Submit\nAOA (Articles of Association) and MOA (Memorandum of Association) of the\ncompany;<\/li><li>The\nfinancial statement of the company for the last five years comprising the\nnecessary economic indicators;<\/li><li>Shareholding pattern of the\ncompany;<\/li><li>ITR\n(Income Tax Return) for the past three years.<\/li><\/ol>\n\n\n\n<p><strong>Details and documents for\nPayment Bank License of the companies &amp; members in the Promoter Group<\/strong><\/p>\n\n\n\n<ol><li>PAN\nand TAN number;<\/li><li>CIN\n(Corporate Identification Number);<\/li><li>Names\nof the companies and individuals, management &amp; corporate structure of all the\ncompanies, shareholding details, a symbolic representation of the organisation\nstructure, total assets, and shareholding of the entities possess;<\/li><li>Date of Registration;<\/li><li>Bank Account Number;<\/li><li>Branch detail of the companies\nand account information;<\/li><li>List all the activities\nexecuted by the company;<\/li><li>Name of all the companies and\nindividuals in the promoted group;<\/li><li>Address concerning the\nregistered office;<\/li><li>Tax\nliabilities faced by the company;<\/li><li>Annual reports of the previous\nfive years of the group entities;<\/li><li>Companies\nand members\u2019 name and corporate structure of all the entities, details of\nshareholding;<\/li><li>All\nthe companies\u2019 stock listing detail.<\/li><\/ol>\n\n\n\n<p>Once you arrange all the documents for Payment Bank License, the candidate requires filing an application for a Payment Bank License to the Chief General Manager of <strong>Reserve Bank of India<\/strong><sup><a href=\"https:\/\/www.rbi.org.in\/\" class=\"text-primary\"><strong>[1]<\/strong><\/a><\/sup> concerning the issuance of the license. The External Advisory Committee shall inspect the application.<\/p>\n\n\n\n<p>At\nthe time of the examination process of the Payment Bank application, the\ncommittee may ask the candidate to confirm the authenticity of documents or\ndetails. Once the verification is done successfully, the Reserve Bank of India\nshall give the Payment Bank License to the candidate. The verified candidate\nshall be shown on the official website of the Reserve Bank of India.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Primary_Characteristics_of_the_Payment_Banks\"><\/span>Primary\nCharacteristics of the Payment Banks<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Traditional\nand Payment banks are almost similar on different factors, yet Payment Banks\nwork under certain limitations like:<\/p>\n\n\n\n<ol><li>Payment banks permitted to\naccept a deposit of one lakh rupees. Always remember that this is the maximum\nthreshold limit for these banks;<\/li><li>Payments do not have the\npermission to accept deposits from the people residing in a foreign location;<\/li><li>Payment banks are accountable\nto invest a minimum of 75% of its demand deposit in security bill or Government\nfunds with a maturity time of one year and possess a maximum of 25% in current\n&amp; fixed deposits with other banks for functioning banks;<\/li><li>Like conventional banks,\nPayment banks also need to get a fund in the form of <strong><em>CRR or Cash Reserve Ration<\/em><\/strong>\nwith RBI;<\/li><li>Payment banks permit clients to\npay the latest utility bills like water and electricity bills via a protected\nPayment Gateway;<\/li><li>Such banks are accountable to\nadd the word \u201c<strong><em>Payment Bank<\/em><\/strong>\u201d in their name as it is a legitimate necessity;<\/li><li>Such banks are officially\nentitled to accept remittances from many banks through payment mechanisms like\nNEFT\/RTGS\/IMPS;<\/li><li>Such banks permit clients to\nopen both current and saving accounts;<\/li><li>Such banks shall reserve the\nright to make a payment on a personal basis &amp; get remittances from the\nforeign location on the current accounts;<\/li><li>Payment\nbanks are permitted to issue debit cards but can\u2019t issue a credit card;<\/li><li>Payment banks cannot provide a\ncredit facility to the clients;<\/li><li>Divergence\nof such banks cannot be possible that is they have steak around with one branch\nto execute their activities;<\/li><li>Payments\nbanks can offer services concerning the internet and mobile banking;<\/li><li>Such\nbanks can signify any banks but under the severe guidelines of RBI;<\/li><li>These banks under RBI\nRegistration can operate as a partner with other conventional banks and provide\nmutual funds, pension and insurance products.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Payment banks are analysed and regulated by the Reserve Bank of India to encourage cashless banking in the nation. The use of Payment Banks requires the incorporation of IT (Information Technology) where the financial transaction can happen within a protected framework or structure. The life of a Payment bank depends on the infrastructures of Information Technology. Such banks are crucial to the Indian Financial Sector because more than 55% of the population of India still lacks access to banking services. With these facilities at disposal, the citizen of India can address the banking requirements with ease as far as transaction or deposit of money is concerned. You can also speak to an expert who will help you in arranging all the vital documents for Payment Bank License.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/requirements-for-payment-bank-license\/\">Requirements for Payment Bank License: A Complete Guide\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Payment bank is a new type of financial institution which is analysed and examined by the Reserve Bank of India. These banks are allowed to accept a deposit amount of Rs. 1 lakh per client. These financial institutions do not hold the right to issue loans or credit cards. But, they are permitted to issue [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":6874,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[391],"tags":[754],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/6872"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=6872"}],"version-history":[{"count":14,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/6872\/revisions"}],"predecessor-version":[{"id":6887,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/6872\/revisions\/6887"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/6874"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=6872"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=6872"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=6872"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}