In terms of public expenditure, crowding-out effect implies?

Q. In terms of public expenditure, crowding-out effect implies:

A. Excess government subsidies distorting resource allocation

B. Excess private expenditure producing inflation

C. Market exploitation by the private sector due to reckless government expenditure.

D. Excess government expenditure, raising the interest rate and depressing the availability of funds.

Continue reading In terms of public expenditure, crowding-out effect implies?

15 things to know about Paytm Payments Bank

One97 Communications founder Vijay Shekhar Sharma led digital wallet company Paytm now launched as Paytm Payments Banks. 

Main points to remember:

1. The maiden branch of Paytm Payments bank opens in the National Capital region of Delhi in Noida. 

2. Bank plans to expand to 31 branches and 3,000 customer service points in its first year.

3. Paytm Payments Bank accounts will initially be available on an invite-only basis. In the first phase, the company will roll out its beta banking app for its employees and associates.

4. Paytm Payments Bank will offer zero balance accounts. 

5. Paytm Payments Bank is a differentiated bank. So, it can accept Rs 1 lakh per account, as per RBI (Reserve Bank of India) guidelines for payment banks. A payments bank cannot lend or give advance to customers. It can issue cheque books and debit cards but not credit cards.

6. The bank will offer 4 per cent interest per annum on deposits. 

7.  Paytm will offer virtual Rupay debit cards to customers immediately and physical card on request for withdrawing cash from any ATM in the country. 

Annual subscription fee for ATM will be Rs. 100 plus delivery charges. 

8. Paytm currently has around 220 million customers who use its digital wallet. The wallets will be shifted to the payments banks and users will have to comply with ‘know your customer’ (KYC) norms for opening accounts.

9. The bank will charge for cash withdrawal using ATM similar to other commercial banks. There will be 5 free transactions in non-metro cities and 3 free transactions in metro cities. After that, the bank will charge Rs. 20 for each transaction. 

10. The bank will charge Rs. 5 for printing out a mini-statement after free transaction limit. 

11. For physical statement, the customer will have to pay Rs. 50 plus delivery charges to the bank. 

12. The bank will provide 10 leaves checkbook at a cost of Rs. 100 plus delivery charges. 

13. All online transactions via channels like IMPS, RTGS, and NEFT will be free of charge. 

14. With the launch of Paytm Payments Bank, there are now 3 Payment Bank in India. Others are Airtel Payments Bank Ltd and India Post Payments Bank Ltd. 

15. Existing Paytm users will be transferred to the Paytm Payments Bank Limited automatically as the wallet business will become part of the new company.


NPCI project to make villages into “cash-lite villages”

National Payments Corporation of India (NPCI), the umbrella organisation for all retail payment systems in India, has taken up a project to work with State Bank of India and Utkal Grameen Bank in transforming one of the panchayats in Odhisha as less-cash or “cash-lite” panchayat.

The Panchayat of Karangamal, in the district of Naupada in Boden Block, has been identified for the purpose.

The panchayat comprises of five villages where a week-long campaign has started to spread digital awareness.

NPCI’s initiative will boost the digital payments ecosystem through various modes and channels of payments such as USSD based *99#, Bharat Interface for Money (BHIM), Unified Payments Interface (UPI), Immediate Payment Service (IMPS), RuPay card and Aadhar Enabled Payment System (AePS).

NPCI has partnered with MicroSave, an international consulting firm for digital financial inclusion to design the program of transforming villages.

About NPCI

National Payments Corporation of India (NPCI) is an umbrella organization for all retail
payments system in India. It was set up with the guidance and support of the Reserve Bank of India (RBI) and Indian Banks’ Association (IBA).

About MicroSave

MicroSave is a leading international consulting firm that offers practical, market-led
solutions focused on enhancing access to financial services to the low and middle-income segments. It offers consulting services in the domains (areas) of Digital Financial Services (DFS); Inclusive Finance and Banking; Micro, Small and Medium Enterprises; and Private Sector Development. MicroSave has worked in more than 50 countries across Asia, Africa & Latin America, with more than 450 clients.


Source: Press Release, March 04, 2017, NPCI transforms villages into “cash-lite villages”

NPCI presents the National Payments Excellence Awards 2016

National Payments Excellence Awards 2016

The highest recognition in the industry to acknowledge exceptional performance in
payments system, the National Payment Corporation of India (NPCI) presented the National Payments Excellence Awards 2016.

The prestigious awards hosted by NPCI are for inculcating a spirit of healthy
competition and for recognizing the exceptional performance of NPCI members. This includes commercial banks, co-operative banks, Regional Rural Banks (RRBs), White Label ATM Operators (WLAOs) and Prepaid Payment Instruments (PPIs).

Continue reading NPCI presents the National Payments Excellence Awards 2016

NPCI and Reliance launch India’s first in-store UPI Payments facility


National Payments Corporation of India (NPCI) and Reliance Retail announced the launch of a new in-store payment solution that will enable customer payments via Unified Payments Interface (UPI) platforms like BHIM or other bank-promoted UPI payment apps. The platform is architected by Bangalore-based Innoviti Payment Solutions, with process support from Axis Bank.

Continue reading NPCI and Reliance launch India’s first in-store UPI Payments facility

16 Important Banking News (State Bank of India) 

These various news headlines are taken from State Bank of India’s official press releases and Twitter handle

Important News about State Bank of India

1. SBI launches its own generic Top Level Domain with its website “”

State Bank of India announced in a press statement, a rebranding of its Corporate Website as “” from earlier

Continue reading 16 Important Banking News (State Bank of India)