Payment Banks: Bare essential banking for most essential goal of banking inclusion

Dr Saloni Gupta

Volume : V, Issue : XI, November - 2015

Payment Banks: Bare essential banking for most essential goal of banking inclusion

Dr Saloni Gupta

Abstract :

 There has been a long series of attempts for taking banks to the unbanked and some new experiments are being made now. In the past, the Government of India and the Reserve Bank of India have made concerted efforts to promote financial inclusion of the unbanked and underbanked regions, sectors and societal segments. However, change is a perennial requirement and innovative reforms have to conceptualized in view of the experience gained, emerging needs and lacunae observed in the existing setup. The need to review and revolutionize the present banking/finance institutional set up has also been felt for some time now. ‘Differentiated banks’ serving niche interests, local area banks, payment banks etc. are contemplated to meet credit and remittance needs of small businesses, unorganized sector, low income households, farmers and migrant work force. Payment Banks, to whom licences have recently been issued by the RBI, are a step in this direction. These new kind of banks are designated to reach people outside the span of formal banking services