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3Cs of Payment Banks
By Rishi Gupta, MD & CEO at Fino Payments Bank
Payment Banks – A definitive step Payment banks will set new standards
towards financial inclusion in ‘convenience banking’. The
August 19, 2015 was a red-letter day popularity of wallet banking, for which
for banking in India, when the Reserve customers just need a mobile number
Bank of India (RBI) issued in-principle and a basic bank account to start
approvals to 11 entities to set up transacting, is picking up among urban
payment banks. This momentous masses. With payment banks, I expect
decision, in my view, is not just game- more and more customers from rural
changing for the banking sector, in and semi-urban areas to start using
terms of increased competition; it is an mobile banking, making the mobile
enormous step to truly make financial wallet the most sought-after payment
inclusion a reality in our country. dispenser and a virtual ATM.
What payment banks will offer is an
For the 100 million households that still
have no access to the banking system, advanced or value-added version of the
payment banks will play the role of a wallet. A wallet is a one-way gateway.
catalyst to upgrade and bring them up Once customers load a certain amount
to mainstream banking. into it, they cannot withdraw it.
Carrying out a transaction becomes
A lot has already been spoken and mandatory. Payment banks will change
written about the possibilities and the that convention and allow customers to
impact of payment banks. In my view, withdraw the amount through an
three transformative things will happen ATM. Payment bank wallets will be an
in India with the launch of payment ideal choice for migrant workers and
banks. the unbanked masses.
1. "Convenience" - Payment banks will Payment banks will
catalyse the rise of convenience make WASA (Wallet and Savings
banking Account) or WACA (Wallet and Current
Account) a reality. WASA will bring
together the convenience of a wallet
and the benefits of a savings account.
Convenience will be the key
differentiator in the payment banks era.
It is this convenience that will attract
the crowds
2."Customer" - Payment banks will
transform customer behaviour
