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Airtel Payments Bank Is Now A Scheduled Bank

Airtel Payments Bank Is Now A Scheduled Bank:

The Reserve Bank of India (RBI) has announced the inclusion of Airtel Payments Bank Ltd. in the Second Schedule to the Reserve Bank of India Act, 1934.

  • With this, the bank can now pitch for government-issued Requests for Proposals (RFP) and primary auctions and undertake both Central and State Government business.
  • Scheduled Banks in India refer to those banks which have been included in the Second Schedule of Reserve Bank of India Act, 1934.
  • Every Scheduled bank enjoys two types of principal facilities: It becomes eligible for debts/loans at the bank rate from the RBI; and, it automatically acquires the membership of clearing house.

Airtel Payments Bank:

  • It is among the fastest-growing digital banks in the country, with a base of 115 million users.
  • It offers a suite of digital solutions through the Airtel Thanks app and a retail network of over 500,000 neighbourhood banking points.
  • The bank turned profitable in the quarter ended September 2021.
  • Payment banks were established to promote financial inclusion by offering; ‘modest savings accounts and payments/remittance services to migratory labour workforce, low-income households, small enterprises, other unorganised sector entities, and other users.’
  • These banks can accept a restricted deposit, which is now capped at Rs 200,000 per person but could be raised in the future.
  • These banks are unable to provide loans or credit cards. Banks of this type can handle both current and savings accounts.
  • Payments banks can provide ATM and debit cards, as well as online and mobile banking.