Data released by the Reserve Bank of India (RBI) shows that the volume of point-of-sale (POS) based transactions by debit card holders of newly launched payment banks – Airtel Payments Bank, Fino Payments Bank and Paytm Payments Bank – exceeded certain mid-sized public sector banks (PSBs).

The three payment banks together recorded a total of 2.15 million debit card transactions in August, Financial Express reported citing RBI data.

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The volume is higher than individual mid-sized PSBs such as Vijaya Bank, Dena Bank and United Bank of India, which recorded 2.09 million, 1.73 million and 1.77 million transactions, respectively.

Paytm Payments Bank, which had a monthly volume of 1.68 million debit card transactions, came close to the smallest PSBs.

In July, the RBI asked Paytm Payments Bank and Fino Payments Bank to stop enrolling new customers. It is believed that had these restrictions been not placed, these payment banks would have recorded even higher transactions.

Airtel Payments Bank launched in September 2016, while Fino Payments Bank rolled out in July 2017 and Paytm Payments Bank in November 2017.

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However, Paytm is said to have higher proportion of transacting customers than Airtel and Fino, as it migrated its existing wallet users to the bank platform.

Payments banks are not allowed to lend money to customers and need to generate revenues from customer transactions. Due to limited margins in the business, some companies that obtained an in-principle approval have surrendered their licence.

Over the coming months, the payment banks industry in the country may expand with Aditya Birla Idea Payments Bank, Jio Payments Bank and the launch of one backed by National Securities Depository (NSDL).