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Finance Minister Arun Jaitley on Wednesday hailed the Reserve Bank of India (RBI)'s move to grant payments bank licences as a "significant step", saying it will bring in more money into the system and spread the reach of banking to rural areas.
"Payments banks will reach out to people in rural areas," said Jaitley, adding the move would also help increase the rural penetration of banks. "Various banks, including big banks like State Bank of India, are looking at increasing their rural reach. Payments banks will help them realise this," said Jaitley.
