· In 2013, the Reserve Bank of India (RBI) constituted a Committee, headed by Dr. Nachiket Mor, to study ‘Comprehensive financial services for small businesses and low income households’. The objective of the Committee was to propose measures for achieving financial inclusion and increased access to financial services.

· The Committee submitted its report to RBI in 2014. One of the key suggestions of the Committee was to introduce specialized banks or ‘payments bank’ to cater to the lower income groups and small businesses, so that by January 1, 2016, each Indian resident can have a global bank account.

· A payments bank is like any other bank, but operating on a smaller scale without involving any credit risk. In simple words, it can carry out most banking operations, but ca not advance loans or issue credit cards. It can accept demand deposits (up to Rs. 1 lakh), offer remittance services, mobile payments/transfers/purchases and other banking services, like ATM/debit cards, net banking and third party fund transfers.