Payment Banks is a new model of banks conceptualized by Reserve Bank of India. Elucidate.

Payment Banks is a new model of banks conceptualized by Reserve Bank of India ("RBI"). With payment banks, RBI seeks to increase the penetration level of financial services to the remote areas of the country. Payment Banks are regulated by the Reserve Bank of India. It released Guidelines for Licensing of Payment Banks on November 27, 2014 and Operating Guidelines for Payment Banks on October 6, 2016. Payment banks are to be registered as public limited companies under the Companies Act and an application has to be filed with Reserve Bank of India in Form III under Section 22 of the Banking Regulation Act, 1949 for a licence to commence banking business by a company incorporated in India and desiring to commence banking business These banks can accept a restricted deposit, which is currently limited to ₹1 lakh per customer and may be increased further. They can pay interest on these deposits just like savings bank account. Both current account and savings accounts can be operated by such banks. Payment banks can issue services like ATM cards, Debit cards, net banking, third party transfers and mobile banking and offer remittances services. These banks cannot grant loans or issue credit cards. The main objective of payment banks is to widen the spread of payment and financial services to small business, low income households, migrant labour workforce in secured technology driven environment. These bank accounts can be opened instantly through their respective mobile apps just by providing details like Aadhar number with KYC verification. Payment Banks are regulated by the Reserve Bank of India.