These are, in some ways, similar to local area banks, an experiment that was abandoned, but with a significant difference, namely, that there is no restriction in their area of operations. A more innovative initiative is licenses to payment banks, of which the Department of Posts with its deep penetration is one.
The banks offer only deposits, which are described as an enhanced version of a prepaid wallet. Banks have to consider a model that will allow people to deposit and withdraw cash. The benefits expected include seamless payments, swift remittances, a higher rate on deposits, and the replacement of unregulated entities.