A Scheduled Bank is one included in the Second Schedule of the RBI Act, 1934. To qualify, it must have a paid-up capital and reserves of not less than ?5 Lakhs and satisfy the RBI that its affairs are not conducted in a manner detrimental to the interests of its depositors.

As per RBI guidelines (revised), the minimum paid-up voting equity capital for Small Finance Banks is ?200 crore. (For Universal Banks, it is ?500 crore, later revised to ?1000 crore for new licenses).

Payments Banks are designed to provide small savings accounts and payments/remittance services. They are strictly prohibited from undertaking lending activities or issuing credit cards to avoid credit risk.

UCBs operate under dual regulation: Banking functions are regulated by the RBI (Banking Regulation Act), while management/incorporation issues are regulated by the RCS of the State (or Central RCS for multi-state banks).

RBI classifies SBI, HDFC Bank, and ICICI Bank as D-SIBs. These are banks considered "Too Big To Fail" and are subject to higher capital conservation buffer requirements.

NPCI, an umbrella organization for operating retail payments and settlement systems in India, developed and operates the UPI platform.

The ownership structure of RRBs is fixed: Central Government (50%), Sponsor Bank (35%), and State Government (15%).

LABs were established as low-cost structures to mobilize rural savings and provide credit in a limited area of operation (typically 3 contiguous districts).

Unlike universal banks (target 40%), SFBs have a higher mandate to serve the underserved, hence their Priority Sector Lending (PSL) target is set at 75% of ANBC.

To ensure safety and liquidity, Payment Banks are mandated to invest at least 75% of their demand deposit balances in Government Securities with maturity up to one year.

The Lead Bank Scheme assigns a specific bank in each district the responsibility of surveying credit needs, developing credit plans, and coordinating with other banks and government agencies to ensure banking development in that district.

Under SAA, each rural and semi-urban bank branch was assigned a specific service area comprising 15 to 25 villages for planned and orderly development of that area.

Both can accept deposits (Payment Banks have a limit). The critical difference is that SFBs can undertake lending activities, whereas Payment Banks are strictly prohibited from lending to minimize risk.

The WOS model ensures that the Indian operations are a separate legal entity with its own capital and board, protecting it if the parent bank abroad fails (Ring-fencing).