Reserve Bank of India to soon come out with payment bank

MUMBAI: The Reserve bank today said it will soon come out with a payment bank, as recommended by the Nachiket Mor committee.

"We are also coming up shortly with what could be payment bank because there is huge potential for financial inclusion with focus on remittances by involving payment system product," RBI Deputy Governor H R Khan told reporters on the sidelines of BFSI Conference organised by SBI Capital Markets.

Before coming out with the payment bank, the RBI will issue guidelines for it.

Khan also said the central bank is in the process of issuing guidelines on universal commercial banking licences.

"I know that you are not happy that we have given licence to two (entities). We will come out with guidelines on universal commercial banking, which will be not be a single window, but it will be 'on tap'," Khan said.

The RBI, in April, had given in-principle approval for setting up of banks to IDFC and Kolkata-base micro lender Bandhan.

As many as 26 applicants, including state-run IFCI and private sector Anil Ambani group and Aditya Birla group, Bajaj Finance, Muthoot Finance, Religare Enterprises and Shriram Capital, had applied in the recent round of issuance of new banking licences.

The deputy governor said the central bank will also issue norms for small banks in the private sector along with mid-sized universal commercial bank.