Hoping to bring hundreds of millions of Indians into the formal banking sector faster, the Reserve Bank of India is considering creating a new category of bank aimed at small savers. A central bank panel suggested setting up what it is calling “payments banks” to serve lower-income households and small businesses. The banks will be easier to set up than the standard bank but they will not be allowed to give loans and will only be allowed to accept deposits of up to 50,000 rupees, or around $800, per customer. One of the biggest reasons most India’s population of 1.2 billion is unbanked is that there aren’t enough banks to reach every village and slum of the country. India has been pressuring banks to roll out more branches for decades but banks have been reluctant as serving the poorest saver can be expensive. The new payments bank structure may help make the business of collecting small savings profitable. The committee’s report included reservation from some of the committee members, as this may not help to achieve all the desired results.