Payments bank is a new model of banks conceptualised by the Reserve Bank of India (RBI) for improving the situation of Financial inclusion in India. They can perform the following activities. - They can't offer loans but can raise deposits of upto lakh, and pay interest on these balances just like a savings bank account does. - They can enable transfers and remittances through a mobile phone. - They can offer services such as automatic payments of bills, and purchases in cashless, chequeless transactions through a phone. - They can transfer money directly to bank accounts at nearly no cost being a part of the gateway that connects banks. - They can also offer card acceptance mechanisms to third parties such as the 'Apple Pay.'