Introduction of localized banking in India

The Reserve Bank of India has set up small and payments banks in India for fulfilling the aim of financial inclusion in India. Non-Banking Finance Companies, telephone companies, super-market chains and public-sector entities can set up payments banks. Small banks can be promoted by individuals with related experience or companies. NBFC’s and MFI’s can convert themselves into small banks. The main objective of small banks in providing credit to small farmers, micro industries or another unorganized sector. Payment banks provide small savings account and remittance services. These banks are not allowed to lend credit. Services by both these banks are restricted to neighbouring districts though later on they can expand their operations. Read more at: https://www.legistify.com/blogs/view_detail/606-small-payment-banks-future-of-local-banking