Payment Banks

The concept of payment banks was initially introduced by the Reserve Bank of India in 2015. This proposal gained approval from a dedicated committee called "The Committee on Comprehensive Financial Services for Small Businesses and Low-Income Households," which was established by former Reserve Bank of India Governor Raghuram Rajan and led by renowned economist Nachiket Mor. The committee endorsed the idea of a payment bank following extensive research into the savings patterns of low-income Indians.