Easy Finance Ltd. is willing to enter into banking business via "Payment Bank". The Board of directors of the company seeks your advice about the required criteria to be fulfilled by the company with respect to the follo

Easy Finance Ltd. may enter into banking business via payment bank and criteria for the same has been discussed below:- Compliances for a "Payment Bank" Application for license: Easy Finance Ltd desiring to commence banking business is required to file an application with Reserve Bank of India in Form III under section 22 of the Banking Regulation Act, 1949 for a license to commence banking business. Minimum capital requirement: Minimum capital requirement is ₹100 crore. For the first five years, the stake of the promoter should remain at least 40%. Voting rights of shareholders: Voting rights will be regulated by the Banking Regulation Act, 1949. The voting right of any shareholder is capped at 10% which can be raised to 26% by RBI. Any acquisition of more than 5% will require approval from RBI. Services that can be undertaken by bank: Payment banks can provide services like ATM cards, debit cards, net banking, third party transfers and mobile banking and offer remittance services. These banks can not grant loans or issue credit cards.