Published On: Fri, Jan 26th, 2018

Payment Banks, Small Finance Banks To Mobilize Pension Scheme

Payment banks and small finance banks are expected to play a key role in expanding the outreach of Atal Pension Yojana (APY), said government.

Payment Banks, Small Finance Banks To Mobilize Pension Scheme

Reserve Bank of India (RBI) granted licenses to eleven payment banks and ten small finance lately to start banking operations in the country. These institutions are a new model of banking conceptualised by the RBI.

Official notification from the Ministry of Finance read on Friday that the participation in the Atal Pension Yojana builds a pensioned society as well as adds sustainable fee income to banks like implementing incentive of around Rs 120 for mobilising APY.

An orientation meeting was held in mid-Jan by the Pension Fund Regulatory and Development Authority (PFRDA) to discuss the implementation of APY schemes in payment banks and small finance banks.

The small finance banks operating under the aforementioned initiative include Janalakshmi Small Finance Bank, Ujjivan Small Finance Bank, A U Small Finance Bank, ESAF Small Finance Bank, Suryoday Small Finance Bank, Fincare Small Finance Bank and Equitas Small Finance Bank.

The payment banks operating in India include Fino Payment Bank, India Post Payment Bank, Paytm Payment Bank and Airtel Payment Bank.

About the Author

- Paul Linus is an eminent online journalist who has been writing news, features and editorials on different websites from across the world for about a decade. He can be contacted at knowledgeherald@gmail.com

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