Objectives of formation of payment banks:
Till now India’s existing banking system is not being able to reach at each corner of the country. There are huge population base living in rural India are not covered under banking system but those rural people with small saving potential need a banking system. New payment banks will provide small saving accounts to them.
Many poor people are migrating from villages to cities for earning opportunities. Such migrant workforce need payments and remittance services to send money to their parents/ relatives who are living at villages where banking system is not available. Payment banks will provide such services to them.