Payments Bank Trouble: Is Your ₹2L Safe?
Fino Payments Bank's CEO resigned amid a GST investigation. This is a good moment to understand what payments banks can and cannot do with your money — and how safe your deposits really are.
Fino's 1.3 crore customers hold accounts smaller than a month's metro card budget — yet regulatory risk is real.
Your money in a payments bank is capped at ₹2 lakh — know the real risk
Key Takeaways
Check your balance: if you hold more than ₹2 lakh in any payments bank, move the excess to a scheduled commercial bank immediately.
Verify DICGC cover: confirm your payments bank is DICGC-insured — deposits up to ₹5 lakh per bank are protected if it holds the cover.
Diversify your digital wallets: avoid keeping large sums in any single payments bank app — treat it like a transit account, not a savings account.
Fino Payments Bank's CEO resigned amid a GST investigation. This is a good moment to understand what payments banks can and cannot do with your money — and how safe your deposits really are.
Here's what happened: Fino Payments Bank's MD and CEO stepped down voluntarily amid a GST regulatory probe, with an interim CEO appointed for 3 months pending RBI approval.. Payments banks in India can accept deposits only up to ₹2 lakh per customer — they cannot lend money or offer credit cards.. RBI must approve all senior leadership changes at payments banks, giving the regulator direct oversight of management transitions..
What you should do: Check your balance: if you hold more than ₹2 lakh in any payments bank, move the excess to a scheduled commercial bank immediately.. Verify DICGC cover: confirm your payments bank is DICGC-insured — deposits up to ₹5 lakh per bank are protected if it holds the cover.. Diversify your digital wallets: avoid keeping large sums in any single payments bank app — treat it like a transit account, not a savings account..
Payments banks cannot issue loans, so your credit score is never at risk from them — but your idle cash earning just 2–3% interest is a silent loss against 6%+ inflation.
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