Payments Banks make Banking easy
Imagine paying your utilities bill at your nearest super market, while buying your regular groceries. Payments banks will bring a whole new world of easy banking to your door-step.
Stop looking for ATM
Your mobile will soon become your wallet. No need to worry about bringing cash around. Payments bank may reach to more rural and deeper parts of India. You may not have to look around for an ATM or credit card merchant, if you are not carrying cash.
Easy to Open Account
Opening an account in payments bank will be much easier than normal banks. Income level restrictions will not be there to open an account in these banks.
A payment bank customer can use his account to make daily or monthly cash transactions through debit card or mobile. It will be a safer option, as you will have only smaller balance in your account.
Transfer Money Faster
Parents can easily transfer money to their children’s bank accounts, living far away from home, to meet their needs like fees and other expenses.
Small firms can pay their salary to employees through payments bank. This can avoid any risk of paying out in cash.
Lower Fees
Lower transaction fees as compared to normal banks will encourage small businesses to switch over their transactions from normal to payments banks.
More vibrant goodies are awaiting for the customers of these banks, since they want to maintain a long term relationship with their customers.
Everyone Benefits
The day is not too far to see your nearest store providing services like a bank. And you will be paying salaries to your driver or maid directly into their bank account in their hometown, so that they do not have to go and stand in queue to send money order to their family.
In rural areas, where people do not have access to banks or other financial institutions, they keep their hard earned money in boxes or clay pots. This kept-at-home money does not earn them any interest. Payments bank will change this whole scenario in rural areas with more and more people opening up bank accounts with simple KYC regulations.
Easy to Deposit
There will be time when, you will be able to deposit money to your savings account in a payments bank through nearest petrol pump, grocery shop or even super markets. It will be as easy as a mobile phone recharge.
India post is one among the 11 organisations, which has got the approval to start payments bank. They have 89% of their post offices in rural areas (1,39,144 out of 1,55,015). This will definitely offer its partner a wider reach to rural areas.
Future Proof Ready
National Payments Corporation of India(NPCI) is increasing its server capacity to handle 100million transactions in a day, which is more than double its present capacity (peak 13million as of Aug 2015). NPCI is also getting ready for a future-proof system, as they expect the transactions to increase by multiples in the coming.
The concept of Payments bank really very good, the article gives a good overview of what a Payments bank is. It can indeed be very useful rural as well as urban people. You can literally carry all your money wherever you go, this is because you can access your bank account from anywhere and make all your payments like movie tickets, petrol bills, etc. from your mobile phones, laptops, etc. Additionally, you can also earn an interest on your deposits. You can deposit a maximum of 1 lakh rupees in your payments ban accounts.
Payment banks is sure to make our lives easier but the concern is the safety of payments through these payment banks. What are the chances of fraudulent practices in transactions through these payment banks? Will they have a strict governing body just like the other normal banks have? Before beginning the concept customers must be convinced about its security aspects as well.
Payments bank are surely highly beneficial not just for the people in rural areas but also for the urban living people as they can easily be used to pay all the utility bills. Since they demand low transaction charges they are more preferred these days. But are there any chances to deposit more than one lakh rupees? Just like the normal banks do payment banks offer variants in the types of accounts? Please clarify
A crisp article ! I never knew that so many payments banks had popped up in India. Also, It would be great if you can let me know how I can open an account in any of the payments bank. Also, let me know if these banks are safe enough just like nationalized banks. Do such banks offer interest on idle amount in the account just like the normal banks offering interest on amount in SB account?
This sounds attractive ans is already in place in many parts of the world. However the only concern is how attractive is it for the black money stackers? Will they accept this payment method since the money necessarily needs to be in banks? This is the reason people still prefer paying with cash rather then using debit or credit cards. But, overall this will turn out to be an absolutely convenient method to pay and will make life much much easier.
Payment banks sound like the perfect solution to a growing population, and a growing international population. What are the risks with payment banks? This article doesn’t address any of the risks that might be associated and I know nothing is perfect… could you please provide some information on the associated risks? A little education goes a long way 🙂 Thank you!