Payments Banks Vs Regular Banks: Which One is Better?

Payments bank is a new modern way of banking which has been started by Reserve Bank of India (RBI). It allows you to avail primary banking services like withdrawing and depositing cash and issue other services like ATM cards, debit cards, net-banking, and mobile banking.

Coming to regular banks, the majority of us are aware of it. So let’s skip talking about regular/commercial banks.

Advantages of Having Payments Bank

  1. Payments banks also offer interest on deposits.
  2. Managing Payments bank account is quite easier and convenient than the commercial ones as you need to visit the branch every time for availing any service. But, it doesn’t happen with the Payment banks customers. They need to go to banking outlets only when doing withdrawal or deposit and the rest happens using the mobile app or site.
  3. You will find awesome bundled offers and discounts.
  4. The charges for availing Payments bank services are less than the regular ones.

Difference B/W Payments Banks & Regular Banks

  1. Payments banks users can deposit up to Rs 1, 00,000 only whereas the regular banks’ customers are free from this restriction.
  2. Payment banks can issue ATM/Debit cards for their account holders but they can’t issue a credit card. Traditional banks are allowed to issue credit cards for their customers.
  3. Payment banks can’t give loans to their customers whereas commercial banks can issue loans and this is their major source of income.
  4. Payments banks do not support international transactions. But commercial bank account holder can send and receive international payments.
  5. The required minimum account balance for commercial banks changes from banks to banks. You may get charged if you fail to maintain the fixed minimum account balance. In the case of Payments banks account holders, there is no minimum balance.
  6. The minimum paid-up voting equity capital for commercial banks is Rs 500 crore and for the Payments banks, its Rs 100 crore.
  7. You will always find the word “Payments Bank” in the name of a Payment bank. But, it doesn’t happen with commercial banks.


After reading this article, if you are still confused or finding it difficult to conclude that which one is better for you from both the banking platform. Then these last lines are for you.

Note that if you are looking forward to managing your banking services from your home & comfortable with the deposit limit of up to Rs 1, 00,000 then you should go with Payment bank.

But if you want to enjoy all the banking services like loans, credit cards, sending and receiving international payments then you have to go for commercial banks.

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