Abstract
A Study on Payment Banks Growth and Challenges in India – Financial inclusion change of financial services provider to the nation and develop a new technology for service utilize. Past decade passed through many technology and innovative changes for banking sector. The research focuses on prospects and challenges faced by payment banks. The main objective of payment banks is to widen the spread of payment and financial services. The objective of the present research is to understand the growth and challenges of payment banks. This research explains the views of customer acceptance on the influencing factors, attracting features, issues faced by customers and some of the suggestions regarding the improvement of services. The research uses Questionnaire to collect primary data from the customers. The study found that the prospects for payment banks are size of the market as India’s unbanked population and the different challenges faced by payment banks. Statistical tools used are percentage analysis, chi square, ANOVA on SPSS.
Introduction
A payment banks (Airtel Payments Bank, India Post Payments Bank, Paytm Payments Bank, Jio Payments Bank, etc.) is like any other bank, but operating on a smaller or restricted scale without any credit risk. It can carry out most banking operations but cannot advance loans or issue credit cards. It can accept demand deposits only i.e. savings and current accounts, not time deposits. The Payment Banks cannot set up subsidiaries to undertake non-banking financial services activities. Payment banks in much the same way as traditional banks , offers interest on deposits in saving account made with them.
Prospects:
- Expansion of rural banking, access to diversified services, social & financial inclusion are some of the benefits.
Challenges:
- Lack of customer awareness, lack of incentives for agents, lack of infrastructure, technological issues are some of the challenges
Prospects of Payment Banks :
Big size of the market:
There is a big market which has not been tapped and efforts can be made to include the unbanked population, to use banking facilities. To achieve their objectives, the payment banks should segment the whole market on the basis of both demography and geography, to offer the custom made products for the prospective customers.
Provide for Financial Advisory:
Financial advisory is a conventional term, that has been used but rarely applied. Most of the Indians have a little or no access to the financial advice being given by banks or any other third party and hence there lies a huge gap in the services and their implementation.
Future pillars:
customer friendly and tailor made interfaces in public perception. Tie up with entities in local feel. Easily accessible by anyone and anywhere. Multi product and multi services model. Feel secured to adopt and use. Offers and other facilities provided by payment banks is very easy and helpful for everyone. Largely, payment bank is serving unbanked rural areas, migrant workers, low income household, unorganized sector entities and alike. This segment is un served and can be a good market for them. Currently payment banks can take deposits up to only Rs. 1 lakh per person and can issue ATM/debit cards. They have to deposits 75% of this amount in government bonds, so their amounts are safe and they can earn certain return. Rest of the deposited amount they can invest in commercial banks which can help them in liquidity management
Challenges of Payment Banks
- Accept ‘deposits, with an initial limitation of Rs.1,00,000 per individual customer. Issue ATM/debit cards– but not credit cards.
- Provide payments and remittance services through various channels.
- Serve as Business Correspondents of other banks.
- Distribute simple, non-risk sharing financial products like mutual fund units and insurance– but not provide loans.
- Assuming they’re able to comply with government requirements, these new Payment banks entities– which range from telecommutes to the national Postal Department– will officially receive their licenses in 18 months.
- The challenge of moving toward e-payments isn’t limited to infrastructure: For PBs to succeed, cash-obsessed Indians will need to migrate to digital alternatives, which will require behavioral changes above and beyond technological hurdles. Though a few e-wallet players and online marketplace providers like Paytm, Food panda, Shop clues, etc.
Components of a Project Report
A project report varies according to the MBA final year project course at top colleges, depending on the consequences and the requirements of the concerned project. But broadly, a project covers the following components:
- Title page
- Table of contents
- Introduction
- Background of the project
- Project objectives
- Methodology
- Results
- Discussion and Analysis
- Conclusion
- Bibliography or references
- Appendices
Project Report Pages : 80
Can be used in : Finance Final Year Project
Delivery Time : Within 2 hours.
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