Last day the apex bank of the country Reserve bank of India stated that RBI soon will come up with the payment banks. RBI governor stated that there is the high potential for financial inclusion therefore RBI has decided to come up with the payment banks. RBI will soon issue the guidelines for it. RBI will issue separate guidelines for the small and medium sized banks. Soon the first payment bank will be launched. Payment bank will offer banking services like opening account, allowing payments and remittances. However, it will not extend loans and invest the deposits in government securities.
It has been also reported that post offices may be granted license to work as the payment banks. The objective of the payment banks is to extend the primary banking services to the hitherto unbanked.