RBI to come out with payment bank soon

June 12, 2014 11:36 pm | Updated 11:36 pm IST - MUMBAI:

RBI Deputy Governor H. R. Khan

RBI Deputy Governor H. R. Khan

The Reserve Bank of India, on Thursday, said it would soon come out with a payment bank, as recommended by the Nachiket Mor committee.

“We are also coming up shortly with what could be payment bank because there is huge potential for financial inclusion with focus on remittances by involving payment system product,” RBI Deputy Governor H. R. Khan told reporters on the sidelines of a conference here.

Before coming out with the payment bank, the RBI will issue guidelines for it.

Mr. Khan also said the central bank was in the process of issuing guidelines on universal commercial banking licences.

The Deputy Governor said the central bank would also issue norms for small banks in the private sector along with mid-sized universal commercial bank.

Revamped inflation-indexed bonds The RBI also said it was in discussion with the government to revamp inflation-indexed bonds to attract more retail investors.

Inflation indexed bonds were introduced last year by the central bank, but were not well received due to their complex structure.

“We had launched inflation indexed bonds that were not successful. We are coming out with the revised version,” Mr. Khan said.

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