Payment Banks – A Step Towards Connecting Technology and Financial Access

Abstract

Payment Banks are the part of digital revolution in Indian banking system. They present an exciting opportunity of financial inclusion. On the recommendation of Nachiket Mor committee (2013), RBI initiated to establish this differentiated bank variant to promote green banking and also to ensure the access of basic banking services to each and every Indian citizen. With the growing penetration of smart phones, mobiles and internet, Indian people are also becoming tech savvy in every field.Banks have also switched over from conventional banking practices to modern banking practices by making all transactions via mobile phones & ATM’S. So, Payment Banks is a disruptive innovation. This paper is all about what are Payment Banks?, RBI guidelines related to PB’s, hurdles involved in their operation and suggestions to improve their performance required information has been collected from newspapers, RBI guidelines and previous published research articles. PB’s are fully equipped with technology and are expected to fulfil the dream of Inclusive India.