Payment Banks for Benkable Un-Banked in India-A Myth or Reality?

As per the recommendation of the Nachiket Mor committee submitted its final report on 7^th January 2014, for the purpose of Comprehensive Financial Services for Small Businesses and Low Income Households, the concept of payment banks came in the existence on 17^th July 2014. Subsequently in February 2015 RBI released the list of 41 applicants and out of which on 19^th august 2015 it gave "inprinciple" licenses to eleven entities to launch payments banks in India. The basic purpose was to provide the banking services to the unbanked areas. RBI in its guidelines says “the objectives of setting up of payments banks will be to further financial inclusion by providing (i) small savings accounts and (ii) payments/remittance services to migrant labour workforce, low income households, small businesses, other unorganised sector entities and other users.

They are new stripped-down type of banks, which are expected to reach rural customers mainly through their mobile phones (rural banking & Mobile banking) rather than traditional bank branches. Hence in this study the researcher tries to do a comparative analysis of how much the people in the rural unbanked areas are ready for payment banks as compared to the urban and semi urban banked areas? The data collected are from both primary and the secondary sources and analyzed through an exploratory method by using histograms in the graphical techniques.