Reserve Bank of India (RBI) Governor Raghuram Rajan, in an interaction with SBI chief Arundhati Bhattacharya, has said that Payments banks are not a threat to mainstream banks, and that the central bank may issue licences for small banks in the next month. He went on to say that Payments are one of the most exciting space for the banking system.
According to the Governor, Payments Banks will serve as feeders to universal banks, and they will reduce cost of access to banking system.
Expressing his thoughts on the recent devaluation of Chinese currency Yuan, Rajan said that the currency depreciation should not be a concern if it is held at current rate. He however agreed that depreciating currencies globally is a worrisome trend, which is fuelled by weak demand.
Addressing the monsoon concerns, Rajan said that he has been praying to weather God. He added that he would watch out if monsoon doesn't deteriorate and rather do better. This could be bonus to rural demand.
According to the Governor, Payments Banks will serve as feeders to universal banks, and they will reduce cost of access to banking system.
Expressing his thoughts on the recent devaluation of Chinese currency Yuan, Rajan said that the currency depreciation should not be a concern if it is held at current rate. He however agreed that depreciating currencies globally is a worrisome trend, which is fuelled by weak demand.
Addressing the monsoon concerns, Rajan said that he has been praying to weather God. He added that he would watch out if monsoon doesn't deteriorate and rather do better. This could be bonus to rural demand.
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