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Transfer) schemes, helping with direct
                                                                transfer of education, gas and
                                                                healthcare subsidies to beneficiary

                                                                Yes, gaining customer trust will be
                                                                challenging, initially. But, I am confident
                                                                that with the value that a payment bank
                                                                will offer, customers will see a
                                                                compelling reason to convert.
                                                                3. "Cash" - Payment banks will reduce
                                                                the economy’s dependence on cash

               Let’s face it. Indians love their cash.
               Despite the cost and risk of
               transactions, Indians prefer to use cash.
               Today, 90% of transactions are in cash.
               With the kind of technologies payment
               banks will utilize, I foresee this very
               Indian customer behaviour all set to
               change. My belief is that with smart
               technologies such as the UID, payment
               banks will be able to power electronic
               transactions in rural and semi-urban
               areas, converting customers into the
               electronic transaction mode.
                                                                Earlier this year, during his budget
               We’ve witnessed a similar                        speech, the Finance Minister spoke
               transformation with Money Transfer,              about making India a cashless economy.
               which has been a precursor to wallet             I fully agree with his vision. As a
               banking, if you ask me. There are                country, we spend billions in currency
               millions of migrant workers in India in          operations. Not to forget the amount of
               constant need to send money home.                black money, a cash-based economy
               We’ve seen migrant workers quickly               breeds.
               adopt the money transfer system, in              I am hopeful that payment banks will
               favour of the traditional cash-based             be the harbingers of this much-needed
               system, which is not just expensive, but         change of moving from cash to a digital
               also time-consuming and risky. Wallet            cash ecosystem. Less dependence on
               banking will be an attractive                    cash is beneficial for individual
               proposition to this huge untapped                customers and the economy alike.
                                                                Imagine a day when there won’t be
               By the end of 2016, all payments                 queues outside ATMs or bank tellers, or
               related to government transactions will          people won’t have to worry about
               have to be done electronically. This             carrying cash around. Beside the
               ambitious and futuristic PMO goal of             individual, digital transactions will have
               paperless transactions— a part of the            an impact on the economy too. Tax
               Digital India initiative—will see                compliance will get a boost and as a
               payment banks playing a very active              country, we will be better placed to
               role. Payment banks will emerge as the           tackle money laundering and black
               go-to channel for implementing the               money issues.
               government’s DBT (Direct Benefit
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