DIFFERENCE BETWEEN SMALL BANK AND PAYMENT BANK.

SMALL BANK	PAYMENT BANK
v  SMALL BANKS CAN UNDERTAKE       ALL  ACTIVITIES THAT EXISTING COMMERCIAL BANKS ARE ALLOWED. v  THEY OFFER BOTH THE PREPAID CARDS AS WELL AS CREDIT CARDS. v  CAN  LEND  BELLOW  25 LAKHS. v  OFFER TO PAY UTILITY BILLS. v  NON BANKING FINANCIAL COMPANIES, MFI’S, LOCAL AREA BANKS CAN APPLY OR CONVERTS THEMSELF INTO SMALL BANK.	v  PAYMENTS BANKS CAN ACCEPT DEPOSITS AND REMITTANCES BUT CAN’T PROVIDE LOANS. v  THEY ARE ONLY ALLOWED TO ISSUE PREPAID CARDS. v  CAN ONLY COLLECT DEPOSIT: MAX-1LAKH PER PERSON. v  DONT OFFER TO PAY UTILITY BILLS. v  NBFC’S, MOBILE COMPANIES, TELECOM COMPANIES, PSU’S, REAL ESTATE COMPANIES CAN APPLY FOR PAYMENT BANK.