How many payments banks will come up finally?
It won't surprising if few more of the remaining eight of the original 11 decide to quit as running a payments bank will not be a cakewalk
Both payments banks and small finance banks, two new beasts on India’s banking turf, will be required to maintain a capital adequacy ratio (CAR) of 15% with Tier I (consisting of equity and reserves) and Tier II (long term debt, among other things) ratios equally split at 7.5% each. This is far higher than the CAR of the so-called universal banks, which can dabble in many banking activities that payments banks and small finance banks are not allowed to. CAR is a measure of financial strength expressed as the ratio of capital to risk-weighted assets.
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