Small banks can market the lending products of other institutions. So the threat is still valid i think.
Credit appraisal risk though has to be taken by the lending institution, but this will go some way to relive the constraint that bigger financial institutions had felt in reaching out to un-served customers.
Do watch this fantastic discussion involving Nandan Nilkeni & Vijay Sekhar (paytm) to get insights on the shape of things come in banking industry.
One should raise these queries in AGM which is on 29 Sep 15. Anyone planning to attend it in Hyderabad.Not sure that a govt organization can compete with a private player.Indian farmers take a long time to develop trust in a brand.
RBI has not said anything about it. With SBI joining hands with Reliance, Airtel with kotak bank. Its only a EXPECTATION for the payment banks to turn full fledged in the future.
It may or may not happen.
may be out of topic, but somehow I did not like Mr. Sehgal's tone in the interview given to money control yesterday (link above). He is all the time taking defensive to the questions asked and was on the verge of losing balance. People are bound to ask questions as they do not know about the company as much as a CEO would, so he should have maintained cool and explained the situation in a better tone. Also, I did not like the over confidence in his voice in achieving 18 billion USD revenue targets. I prefer modest managements no matter how easy it is to achieve the targets and I'm ok even if I go wrong by not partnering with Mr. Sehgal. Anyway, I'm going out of topic.
That is on the liabilities side.
On the asset side - they can keep their float in govt bonds. In short - they can lend to the govt (and nobody else).
I think the correct question to ask oneself is -
I think a positive to all the above is a good reason to start building a position.
Disclosure: I am invested
Absolutely, it is not that easy to get a lending license 
If payment banks get to lend as ell - it would be back door entry into NBFC segment !!
At the max, the current workings might allow payment banks to impact CASA levels of mainstream banks and that to limited to 1 lakh INR. They can only ease the payment process.
@chiragjain1976 Perdon my ignorance - but I do not have much information on this company, so asking for the pointers.
Strangely I couldn't find a single thread in VP forum that talks about any of the above.
Yah I think Payment banks are allowed to only hold current accounts with max balance of 1 Lakh. And allowed to facilitate transactions. No deposits and loans.