There is large proportion population in India who do not have banking facilities due to India’s geographical spread, regional disparities, reach and connectivity. Thus in the need to help in expanding financial inclusion mission by bringing small and low Income households into ambit of financial services, RBI has announced the introduction of concept of Payment Bank in India.
It is expected that these payment banks can use the mobile platform to provide basic banking transactions, in particular, payment for services and subsidies through mobile phones. Thus, there is still lot of opportunity available in India for this type of banking provided they get their technology solutions right. These banks are likely to help expand banking services to the remotest corner of the country.
Amid the rise in mobile banking transactions and lenders focusing on building mobile applications for these, the National Payments Corporation of India (NPCI) has developed a unified payment interface to connect payments across smartphones. With this, consumers will be able to send and receive money through smartphones without revealing their bank account details. Transactions can be undertaken with the help of details such as Aadhaar number, mobile number or a virtual payment address.