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Payment banks can be created by converting the existing pre-paid instrument (PPI) providers into banks, according to Nachiket Mor, Chairman of the RBI-appointed financial inclusion committee.
In its recommendations released early this week, the committee had recommended setting up of specialised payment banks to provide payment services and deposit products to small businesses and low-income households.
There are 27 such PPIs in the country.
Mor said not many changes are required in the PPI structure for creating the payment banks.
“My sense is that it (payments bank function) is a minor extension of the existing PPIs that are there. I cannot say how much time is required (to set such banks up),” Mor said.
The recommendations are subject to further scrutiny by the RBI.
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