{"id":55687,"date":"2025-07-18T16:06:09","date_gmt":"2025-07-18T10:36:09","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=55687"},"modified":"2025-07-18T16:06:33","modified_gmt":"2025-07-18T10:36:33","slug":"difference-between-payments-bank-and-small-finance-bank","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/difference-between-payments-bank-and-small-finance-bank\/","title":{"rendered":"Difference Between Payments Bank and Small Finance Bank"},"content":{"rendered":"

The Difference between Small Finance Bank and Payment Banks lies in their role and functioning. Both banks are registered under the Reserve Bank of India and their functioning is monitored by the central bank of India. While Small Finance banks provide financial services to the country\u2019s unserved, underserved and unbanked areas of the country, Payment banks are small operation based banks that don’t involve any credit risk. In this article, we are going to learn about the differences between Small Finance Banks and Payment Banks.\u00a0<\/span><\/p>\n

Difference Between Payment Banks and Small Finance Banks<\/span><\/h2>\n

The difference between Payment Banks and Small Finance Banks include:\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n\n
Basis<\/b><\/td>\nPayment Banks<\/b><\/td>\nSmall Finance Banks<\/b><\/td>\n<\/tr>\n
\n

Objective<\/b><\/p>\n<\/td>\n

\n

Financial inclusion through low-cost banking for the unbanked<\/span><\/p>\n<\/td>\n

\n

Provide credit access to underserved sections like small businesses, farmers, etc.<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Lending Facility<\/b><\/p>\n<\/td>\n

\n

Cannot lend money<\/span><\/p>\n<\/td>\n

\n

Can lend money and offer full credit services<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Deposit Limit<\/b><\/p>\n<\/td>\n

\n

Can accept deposits up to \u20b92 lakh per customer<\/span><\/p>\n<\/td>\n

\n

No such limit; can accept all types of deposits<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Target Audience<\/b><\/p>\n<\/td>\n

\n

Migrant laborers, low-income households, small businesses<\/span><\/p>\n<\/td>\n

\n

Small and marginal farmers, MSMEs, unorganized sector<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Issue of Credit Cards<\/b><\/p>\n<\/td>\n

\n

Not allowed<\/span><\/p>\n<\/td>\n

\n

Allowed<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Examples<\/b><\/p>\n<\/td>\n

\n

Paytm Payments Bank, Airtel Payments Bank<\/span><\/p>\n<\/td>\n

\n

AU Small Finance Bank, Equitas Small Finance Bank<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Payment Banks in India<\/span><\/h2>\n

Payment Banks are the new type of banks in India that allow customers to deposit only upto 2 lakh rupees. The banks don’t provide any credit card and loan facility. Customers can open either a savings or a current account and apply for a debit card or internet banking service. Payment Banks in India include:\u00a0<\/span><\/p>\n

Fino Payment Bank\u00a0<\/span><\/p>\n