I am 32 years married and reside in Bidar. I have heard that payment banks will be the next big thing. Can I invest my money in these payment banks and will it be safe? Do these banks give credit cards? Kindly advise?
Payment banks can accept deposits restricted to Rs 1 lakh per customer, and are allowed to pay customers interest on the money that is being deposited in savings accounts. You will be able to operate your account using the mobile app offered by payment banks.It allows transfers and remittances through the mobile, offers services such as automatic payments of bills, cashless purchases, chequeless transactions through a phone, and money transfer directly to bank accounts. Take a look at some of the salient features of payment banks: Most payments banks have tied up with commercial banks to offer ATM transactions to customers. Inquire whether a payment bank offers ATM cards that can be used to withdraw money from other banks. Just like interest rates, it is essential to be aware of the charges levied on the services offered by payment banks. Some payment bank charge youfor cash withdrawal and if you transfer funds to another banks. You need to watch out for fee escalations on value-added features and transaction charges which can be substantial for higher ticket transactions. Payment banks cannot lend or offer credit advance to customers like traditional banks. They can issue cheque books and debit cards but not credit cards. However, they can tie up with other banks to offer these services.Payment banks can take deposits up to only 1 Lakh per account and have to invest 75% of their deposits in safe government securities with maturity up to one year as per Government rules. This keeps your money safe.