It is well known that bank frauds are on the rise and many people have lost lakhs of rupees to them. Fraudsters come up with new tricks each day to cheat innocent people while carrying out online banking transactions.
As the result, many people are scared to use online banking. For the fear of losing money, many people do not add even net banking beneficiaries for auto payment of bills. As the result, there are chances of missing due dates and this attracts late payment penalties.
Many people are afraid of losing hard earned money to bank fraud. A lot of people don’t have multiple bank accounts due to the mandatory requirement by banks, for maintaining a minimum balance.
There is a very good way to avoid these problems. Are you wondering what it is? It is nothing but opening a payment bank account. In most of the payment bank accounts, there is no need to maintain a minimum balance. Even if you are asked, the minimum balance is quite low.
There is a limit on the maximum balance that can be maintained in a payments bank account. As per the rule, the maximum amount that can be kept in a payments bank account is Rs 1 Lakh. You will not be allowed to keep more than this amount.
With the help of payment bank accounts, you can avoid losing money to frauds by maintaining only that amount which is required to pay the monthly bills. You will not be charged for online transactions and there is no limit on the number of transactions, unlike banks. Charges depend on the type of account. So, you must go through the charges before opening a payment bank account.
Payment banks are just like any other banks in India. But, these banks operate on a very small scale and do not issue loans or credit cards to customers. The maximum amount that can be maintained in a payment bank account is Rs 1 Lakh.
1. Just like a savings bank account, you can deposit money with a payments bank. But, the maximum amount that can be deposited is Rs 1 Lakh. You will be paid interest for the money deposited in the payments bank account. The interest paid is quite high compared to a savings bank account.
2. With the help of payment banks, you can transfer money to friends and family through mobile phones. These banks use a payment mechanism as approved by RBI like RTGS/NEFT/IMPS.
3. Like a savings bank account, you will be offered a debit card for a payments bank account. You can use this debit card to withdraw money at ATMs.
4. Payment banks offer various services like automatic payment of bills, making cheque transactions through your mobile phone and also cashless purchases.
5. With the help of the auto payment facility, you can auto-pay your monthly bills by linking the beneficiaries with your payment bank account. This makes sure that you don't incur late payment charges by missing the due dates.
See Also: Types Of Bank Frauds