The NSDL Payments Bank began operations as a payment bank, the RBI announced Monday. In November 2014, the RBI granted approval in principle to 11 candidates, including National Securities Depository Ltd. (NSDL), for the creation of payment banks. Airtel Payments Bank, India Post Payments Bank, FINO Payments Bank, Paytm Payments Bank, Aditya Birla Idea Payments Bank and Jio Payments Bank are already in operation.
These niche banks may accept demand deposits and issue ATM / debit cards, among other activities. Payment banks, however, can not issue credit cards and undertake lending activities. Established in August 1996, NSDL is the first and largest repository in India. It provides a mix of services to end investors, investment dealers, stock exchanges, custodians, investees, and more. via its network of more than 260 member retailers / trading partners.
In another notification, the RBI indicated that payment banks and small finance banks are eligible to participate in money market calls / notifications / conditions both as borrowers and lenders. Such eligibility is valid even before the end of the process of inclusion in the Second Schedule of the 1934 Reserve Bank of India Act, he added.