RBI may undertake comprehensive review of architecture of payment banks

Governance standards, viability of biz among priorities

The Reserve Bank of India (RBI) may undertake a comprehensive review of the architecture of payment banks (PBs).

This all-encompassing exercise, almost a decade after licensing terms were issued on November 27, 2014, is to take into account standards of governance, the viability of the payment bank (PB) business model, and changes, if any, if needed. This will also impact PBs seeking to convert into small finance banks (SFBs), as a comprehensive review of the regulatory capital framework for the latter is also under consideration, as mentioned in the Report on Trend and Progress of Banking in India (2022-23).
 

PBs turned