These include transaction support, cash management, and cross-selling of other financial products, such as insurance and mutual funds.To be sure, payment banks begin with a distinct regulatory handicap. Unlike traditional lenders, payment banks cannot keep public deposits of more than Rs 1 lakh with them. They cannot lend money either, but must invest 75% of their demand deposits in government securities.Of the seven that now have the licence to run the business, Fino Payments Bank, India Post Payments Bank and Airtel Payments Bank have started fullfledged operations. In comparison, NSDL Payments Bank, Jio Payments Bank and Aditya Birla Payments Bank (ABPB) have operations that are limited in scale. We can also earn on both side on supply and demand,” said Rishi Gupta, CEO at Fino Payments Bank.

Source: Economic Times May 08, 2019 02:41 UTC