Payment Banks in India – Demystified

International Journal of Economics and Management Studies

© 2015 by SSRG - IJEMS Journal

Volume 2 Issue 12

Year of Publication : 2015

Authors : Dr.R.Srinivasan, Prof.M.Subramanian

10.14445/23939125/IJEMS-V2I6P101

How to Cite?

Dr.R.Srinivasan, Prof.M.Subramanian, "Payment Banks in India – Demystified," SSRG International Journal of Economics and Management Studies, vol. 2,  no. 12, pp. 1-4, 2015. Crossref, https://doi.org/10.14445/23939125/IJEMS-V2I6P101

Abstract:

The buzz word in Indian banking industry, during the recent days are “Payment Banks”. Reserve Bank of India(RBI) seems to be very cautiously-active in granting licenses to (a) Payment Banks (b) Small Finance Banks in India. Common men are able to understand about the logic and business behind the Small Finance Banks, but about the Payment Banks every common man is raising their eye-brows (a) Who are these payment banks? (b) Already we have public sector banks, private sector banks, foreign banks and cooperative banks in India, is there a requirement for these payment banks? (c) What arethe value-added services these payment banks going to offer in the banking sector? (d) Are these payment banks only for enabling faster payments? (e) Will these payment bankers be a competitor for our existing banks? (f) Are these payment banks a game-changer in the Indian banking industry? (g) Are they really going to help the existing customers or driving for adding new unbanked customers, through financial inclusion? Like the above illustrative list of questions, lots and loads of queries are bubbling in our minds, for every now and then, these days. This paper aims at demystifying the concept of “Payment Banks in India”. At the end of reading this paper, every reader would have clarity in their mind about the concept of payment banks.

Keywords:

Small Finance Banks, Payment banks, Financial Inclusion, Value-added services, RBI

References:

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