They accept deposits like banks, but unlike full-service lenders, they are not allowed to lend. Instead, customer deposits are invested in government securities, generating a modest interest spread and occasional treasury gains. Beyond this, payments banks earn fees and commissions from a wide range of activities: digital payments, remittances, micro-ATM and Aadhaar Enabled Payment System (AePS) transactions, debit cards, sale of third-party products such as insurance, gold loans and fixed deposits, busin ...