Payment banks is a new model of banks conceptualised by the Reserve Bank of India (RBI). Elucidate.

Payment Banks (PBs) Payments Banks (PBs) is a new model of banks conceptualized by the Reserve Bank of India (RBI). These banks can accept a restricted deposit, which is currently limited to ₹1 lakh per individual customer and may be increased further. In order to expand the ability of payments banks to cater to the growing needs of their customers, the current limit on the maximum end-of-day balance of ₹1 lakh per individual customer was increased to ₹2 lakh. They can pay interest on these deposits just like savings bank accounts. Both current accounts and savings accounts can be operated by such banks. PBs come under a differentiated bank license since they cannot offer all the services that a commercial bank offers. In particular, a payments bank cannot lend. The main objective of PBs is to widen the spread of payment and financial services to small businesses, low-income households, and migrant labor workforce in a secured technology-driven environment. They can issue services like ATM cards, debit cards, net-banking, third-party transfers, and mobile-banking and offer remittance services. These banks cannot grant loans or issue Credit cards. To open a bank account, the application process for PBs is made very easy as compared to other banks. These bank accounts can be opened instantly through their respective mobile apps just by providing details like Aadhaar number with KYC verification. Most of the payment banks have a non-NBFC heritage and will use payment banks as a customer retention and acquisition mechanism.