Eassy on how payment bank and small finance bank are contributing towards economy 2019
Answers
Payments bank and small finance banks are contributing a lot in Indian economy. These are very helpful for the poor.
Poor can avail loan from these small finance banks at standard rates. Small farmers use to take loans for their seasonal crops and repay it after harvesting.
Small transaction are done by the poor at payment banks fir their basic needs. They also transact money when their relative send money to them.
These are important in circulation of money in Market which boost economy. Small finance banks should be encouraged.
Contribution of payment bank and small finance bank in economy 2019
Explanation:
Payment banks is a new banking concept introduced by RBI which can accept a maximum deposit of Rs. 1 Lakh at present, but they can't give loan where as small financial banks are the niche banks which serve the banking needs of small business, unorganized sectors, small and marginal farmers etc.
Both Payment bank and small finance bank have served in development and expansion of banking facility during 2019. it has the following contribution-
- expansion of banking sector has been done through payment and small financial bank.
- They offer banking services to the niche group which is generally neglected by other commercial bank like small and marginal farmers, small business etc.
- banking has been made easy by as payments bank can be even operated through mobile phone.
- they offer higher interest rate to the depositors, give cash back and other additional offers and benefits.
Learn more:
Difference between payment bank and small financial bank
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