<P> On 23 September 2013, Committee on Comprehensive Financial Services for Small Businesses and Low Income Households, headed by Nachiket Mor, was formed by the RBI . On 7 January 2014, the Nachiket Mor committee submitted its final report . Among its various recommendations, it recommended the formation of a new category of bank called payments bank . On 17 July 2014, the RBI released the draft guidelines for payment banks, seeking comments for interested entities and the general public . On 27 November, RBI released the final guidelines for payment banks . </P> <P> In February 2015, RBI released the list of entities which had applied for a payments bank licence . There were 41 applicants . It was also announced that an external advisory committee (EAC) headed by Nachiket Mor would evaluate the licence applications . On 28 February 2015, during the presentation of the Budget it was announced that India Post will use its large network to run payments bank . The external advisory committee headed by Nachiket Mor submitted its findings on 6 July 2015 . The applicant entities were examined for their financial track record and governance issues . On 19 August 2015, the Reserve Bank of India gave "in - principle" licences to eleven entities to launch payments banks . The "in - principle" license was valid for 18 months within which the entities must fulfil the requirements and they were not allowed to engage in banking activities within the period . The RBI will grant full licenses under Section 22 of the Banking Regulation Act, 1949, after it is satisfied that the conditions have been fulfilled . </P> <P> The minimum capital requirement is ₹ 100 crore . For the first five years, the stake of the promoter should remain at least 40% . Foreign share holding will be allowed in these banks as per the rules for FDI in private banks in India . The voting rights will be regulated by the Banking Regulation Act, 1949 . The voting right of any shareholder is capped at 10%, which can be raised to 26% by Reserve Bank of India . Any acquisition of more than 5% will require approval of the RBI . The majority of the bank's board of directors should consist of independent directors, appointed according to RBI guidelines . </P> <P> The bank should be fully networked from the beginning . The bank can accept utility bills . It cannot form subsidiaries to undertake non-banking activities . Initially, the deposits will be capped at ₹ 100,000 per customer, but it may be raised by the RBI based on the performance of the bank . The bank cannot undertake lending activities . 25% of its branches must be in the unbanked rural area . The bank must use the term "payments bank" in its name to differentiate it from other types of bank . The banks will be licensed as payments banks under Section 23 of the Banking Regulation Act, 1949, and will be registered as public limited company under the Companies Act, 2013 . </P>

Minimum capital requirement for payment banks in india