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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
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