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