India To Come Out With Payment Bank Shortly: RBI Deputy | SupportBiz

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India To Come Out With Payment Bank Shortly: RBI Deputy

 
Gross non-performing assets (NPAs) or bad loans of the domestic banking system were 4.4 per cent of gross advances, H.R. Khan said at an event organised by Assocham in Delhi.

Mumbai: The Reserve Bank of India will come out with a payment bank soon, Deputy Governor H. R. Khan said on Thursday.

A committee appointed by the RBI had proposed the formation of payment banks to widen the spread of payment services and deposit products to small businesses and poor households in a country where about half of the households are outside the banking system.

However, he said early indications are that the figures for the fourth quarter are better than the third quarter.

To minimise the risk of default, he said, "There is a growing need for banks to strengthen their internal credit appraisal system that is on their credit assessment and risk management mechanisms."