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Payment Banks Seek RBI Approval for Differential Rates
May 25, 2017
Payment banks, which are relatively new to the banking industry, have sought the central bank’s approval for offering differential rates of interest on savings accounts that have a balance smaller than Rs. 1 lakh. This is because according to the RBI regulations differential rates of interest can only be offered in amounts higher than Rs. 1 lakh. However, the deposits on savings accounts in payment banks are capped at Rs. 1 lakh.
A top executive from a payment bank said that the restriction is not allowing the payment banks to attract new customers as they can’t offer differential interest rates. For now, they have a pending request with the RBI, but no confirmation has been received yet.
