Difference Between Payments Bank, Traditional Bank, And Wallet
Here’s a table that outlines the key differences between payments banks, traditional banks, and digital wallets:
| Criteria | Payments Bank | Traditional Bank | Digital Wallet |
| Regulatory Body | Regulated by Reserve Bank of India (RBI) | Regulated by RBI | Not regulated by RBI |
| Type of Account | Savings Account | Savings Account, Current Account, Fixed Deposit Account | E-wallet, Prepaid Wallet |
| Maximum Balance | Rs. 2 lakhs per customer | No limit | Rs. 1 lakh per customer for non-KYC wallets, Rs. 2 lakh per customer for KYC wallets |
| Interest Rates | Generally higher than traditional banks | Varies depending on type of account and bank policy | No interest or very low interest rates |
| Loans | Cannot provide loans or issue credit cards | Can provide loans and issue credit cards | Cannot provide loans or issue credit cards |
| Branch Network | Limited branch network, usually in rural or remote areas | Extensive branch network, usually in urban areas | No physical branches |
| Debit/ATM Card | Usually provided | Usually provided | May or may not be provided |
| Services Offered | Mobile and internet banking, money transfer, bill payments, and other basic banking services | Wide range of banking services including investment services, insurance, and loans | Money transfer, mobile and internet banking, online payments, and other basic banking services |
| Fees and Charges | Usually lower than traditional banks | Varies depending on type of account and bank policy | Varies depending on wallet provider and usage |
| Security | Secure, but limited services may pose risks | Secure, with comprehensive security measures in place | Secure, but digital wallets may be vulnerable to cyber attacks |
| Customer Base | Primarily targets unbanked and underbanked populations | Targets all segments of the population | Primarily targets tech-savvy customers and millennials |
It’s important to note that these differences can vary depending on the specific
