With the SVB crisis, there’s a lot of talk in the US about the need for a bank that holds money in government bonds without taking risks. Just a simple wallet where people keep their cash, earn a reasonable interest, & make payments. What RBI intended with payments banks.

Payments bank didn’t pick up in India because users didn’t want to pay monthly fees. Also, payments became highly competitive, with businesses undercutting each other. Also, those who took licenses saw payments bank mainly as a stepping stone to a full-fledged bank license.

If you’re worried about banking issues and want a risk-free way to park your cash, check out G-secs T-bills. And the returns are higher than FDs.

You can invest through Zerodha or the RBI platform, but it’s easier to hold them in your demat

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