aaditya aggarwal

8/17/2019 Aaditya Aggarwal

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MAJOR PROJECT REPORT

ON

“PERSPECTIVE OF SALARIED PEOPLE IN EAST DELHI ABOUT

PAYMENTS BANKS”

Submitted in partial fulfillment of the requirements for award of degree of a!helor of usiness Administration "#$%

Under the gud!n"e #$% Su&'tted &(%

&r Jasbir Singh Aadit'a AggarwalAsso!iate Professor ()*)+,()-)*

A "#$%

&EPARTMENT O. /S$NESS A&M$N$STRAT$ON

M!h!r!)! Sur!)'!* In+ttute

Re!ogni0ed ' /1C u2s 3"f%

Affiliated to 1uru 1obind Singh $ndraprastha /ni4ersit'

C5+6 Jana7puri6 New &elhi


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CERTIFICATE

This is to !ertif' that the pro8e!t titled 9PERSPECT$:E O. SA;AR$E& PEOP;E $N EAST &E;S? has been a!!omplished b' Aadit'a Aggarwal6 a student of A "#$%@th Semester6 under m' super4ision


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ACKNO,LED-EMENT

This pro8e!t report had not been possible without dire!t and indire!t !ooperation of 4arious people $

ta7e this opportunit' to a!7nowledge the people who helped me in su!!essful !ompletion of this pro8e!treport

$ would li7e to than7 &r Jasbir Singh for helping me to prepare this


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TABLE OF CONTENTS

Ch. N# CHAPTER NAME P!ge N#.

/ $NTRO&/CT$ON

0 PRO.$;E O. T

2 ANA;=S$S AN& $NTERPRETAT$ON O. &ATA

3 CONC;/S$ON AN& RECOMMEN&AT$ONS

$;$O1RAP


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CHAPTER I


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INTRODUCTION


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Intr#du"t#n

This is a stud' on the per!eption of salaried publi! in east &elhi on the !on!ept of pa'ments ban7s

Pa'ments ban7s are a new !on!ept in the $ndian ban7ing industr' The' are spe!iali0ed ban7s who hold

spe!iali0ed li!enses from R$ to !ondu!t some spe!ifi! and restri!ted business a!ti4ities At present6

the' !an a!!ept deposits up to Rs one la7h and pa' interest on them The deposits !an be in the form of

!urrent a!!ounts or sa4ings ban7 a!!ount


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O&)e"t4e+

The report fo!uses on the sub8e!t of pa'ments ban7s6 whi!h are spe!iali0ed ban7s li!ensed b' the

Reser4e an7 of $ndia Pa'ments an7s are 'et to start operations in the !ountr' This stud' deals with

the perspe!ti4e of salaried people in east &elhi about the !on!ept of pa'ments ban7s .ollowing are the

ob8e!ti4es of the stud'

• To as!ertain the publi! awareness about the !on!ept of pa'ments ban7s

• To !he!7 the amount of preferen!e for different pa'ments ban7 brands

• To determine whether there eBists a relationship between annual in!ome and preferen!e to use

pa'ment ban7s

• To as!ertain the amount of preferen!e for pa'ments ban7s against substitutes

To measure the relati4e importan!e of different features of pa'ment methods to the benefi!iaries


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Re+e!r"h Meth#d#*#g(

S#ur"e #$ d!t!

Primar' data is the data that has ne4er been published and is the original wor7 of the resear!her $t is

!olle!ted through obser4ations and inter4iews

Se!ondar' is the data that has alread' been published b' another part' There are man' sour!es of

se!ondar' data6 whi!h in!ludes resear!h arti!les6 newspapers6 boo7s6 8ournals and other sour!es

oth primar' and se!ondar' sour!es of data will be used Primar' data would be !olle!ted

through sur4e's Se!ondar' data would be !olle!ted from 4arious sour!es6 in!luding newspaper

arti!les6 press reports6 reputed websites6 and reports of !onsulting agen!ies

Sur4e( 'eth#d

Fuestionnaires are a set of printed or written questions with a !hoi!e of answers6 de4ised for the

purposes of a sur4e' Stru!tured questionnaire will be used to as7 questions to the respondents

Fuestions in the sur4e' would be !losed5ended A total of siB questions would be as7ed from the

respondents Fuestions are framed in su!h wa' so as to garner true and unambiguous opinion of the

respondents

M#de #$ !d'n+tr!t#n

Personal $nter4iew of the sampling units will be done to gather data &ue to the !ompleBit' of the topi!6

ambiguous nature of queries6 and eBpe!ted low awareness about the sub8e!t5matter in the general

publi!6 personal inter4iews will be used to fill the sur4e's

S!'5*ng Unt+

Male or female aged between 3) and G, who ha4e an annual in!ome between Rs *6((6((( to Rs)36((6((( and are not self5emplo'ed Though the !on!ept of pa'ments ban7s is originall' en4isaged

for those people who are out of the !urrent finan!ial s'stem6 R$ does not prohibit pa'ments ban7s

from pro4iding ser4i!es to other in!ome groups This pro8e!t aims at understanding the opinion of su!h

people


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S!'5*e S6e !nd E7tent

)(( respondents will be !hosen for the stud' These would be !hosen a!!ording to the parameter

defined in the target population of the stud' Simple Random Sampling will be used to sele!t the

respondents The sur4e' will be !ondu!ted in Shahdara area of east &elhi

D!t! An!*(++

Correlation anal'sis will be done to find !orrelation between annual in!ome and preferen!e to use of

pa'ment ban7s Pie diagrams and bar !harts will be used to present the data in eas'5to5understand

format


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L't!t#n+

&espite the efforts to ensure the maintenan!e of highest qualit' in the pro8e!t report6 there are still some

limitations in the stud' An' use of the stud' has to be made 7eeping in mind the following limitations

• A limitation of the stud' is the relati4el' small sample si0e &ue to this reason6 the findings

!annot be generali0ed to the broader !ommunit' based on this stud' alone A stud' on a larger

sample si0e would be required for that purpose

• There is a la!7 of awareness about the sub8e!t5matter in the publi! at present The sub8e!t5

matter of the stud' is quite new .indings ha4e to per!ei4ed in light of the fa!t that the

respondents were not full' aware about the sub8e!t5matter

• There is a tenden!' among people to understate their in!ome due to 4arious reasons The

question regarding annual in!ome shall be as7ed in the end and framed !arefull' Still6 the

a!tual in!ome ma' be more than what the respondents would state


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CHAPTER II


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PROFILE OF THE INDUSTRY


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INTRODUCTION

A pa'ments ban7 is a publi! limited !ompan' li!ensed b' the Reser4e an7 to perform restri!ted

fun!tions of ban7ing At present6 it !an a!!ept deposits up to Rs )6((6((( and pa' interest on them

The deposits !an be in the form of !urrent a!!ounts or sa4ings ban7 a!!ount en'a where :odafoneIs M5Pesa is used b' two in three of adults to store mone'6 ma7e

pur!hases and transfer funds to friends and relati4es

R$ said that it will use the learnings it gains from these first set of pa'ment ban7s to impro4e its


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pro!esses6 and will gi4e more li!enses in a regular manner $t appears that the li!enses ha4e been gi4en

to some fairl' different !ompanies to see what approa!hes will be su!!essful Cholamandalam and the

National Se!urities &epositor' both ma7e sense from a finan!e and ban7ing histor' perspe!ti4e Te!h

Mahindra ma7es sense as a te!hnolog' !ompan' Pa'tm has an alread' fun!tioning and 4er' popular

mobile wallet Airtel and :odafone ha4e large distribution networ7s throughout $ndia6 e4en in rural

lo!ations6 whi!h will help as people will be able to easil' !on4ert !ash into 4irtual mone' and 4irtual

mone' into !ash

$ndian domesti! remittan!e mar7et is estimated to be about Rs -((5,(( billion and growing A big

!hun7 of that6 espe!iall' relating to the migrant laborers6 !ould shift to this new platform Pa'ments

ban7s !an also pla' a !ru!ial role in implementing the dire!t benefit transfer s!heme of the go4ernment6

where subsidies are paid dire!tl' to benefi!iariesI a!!ounts

Of the +) !ompanies and indi4iduals that applied6 onl' )) were sele!ted $nterestingl'6 some of the

!ompanies that were not sele!ted the first time6 su!h as OBigen ser4i!es6 alread' ha4e a large part of

their business !oming through remittan!es6 and ha4e wor7ed on a four5month pilot pro8e!t for the R$6

using the Aadhaar !ard to enable !ash pa'ments for go4ernment s!hemes

LICENSIN-

.or the first time in the histor' of $ndias ban7ing se!tor6 R$ ga4e out differentiated li!enses for

spe!ifi! a!ti4ities The appli!ations were initiall' s!reened b' R$ to ensure prima facie eligibilit' of

the appli!ants Thereafter an EBpert Ad4isor' Committee !onsisting of eminent professionals li7e

ban7ers6 !hartered a!!ountants6 finan!e professionals6 et! e4aluated the appli!ations The EAC

submitted its re!ommendations to R$ for !onsideration After this R$ ga4e in5prin!iple appro4al to

)) appli!ants The 4alidit' of the in5prin!iple appro4al issued b' R$ will be one 'ear from the date of

granting su!h appro4al and would lapse automati!all' thereafter The Pa'ments an7 would therefore

ha4e to be set up within one 'ear of grant of in5prin!iple appro4al

)) entities ha4e been granted in5prin!iple appro4al of R$ to a!t as pa'ment ban7s These are

)% Adit'a irla Nu4o ;td

3% Airtel M Commer!e Ser4i!es ;td

*% Cholamandalam &istribution Ser4i!es ;td

+% &epartment of Posts

G% .ino Pa'Te!h ;td

@% National Se!urities &epositor' ;td


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K% Relian!e $ndustries ;td

-% &ilip Shantilal Shangh4i

,% :i8a' She7har Sharma

)(% Te!h Mahindra ;td

))% :odafone m5pesa ;td

After issue of in5prin!iple appro4al for setting up of Pa'ments an76 if an' ad4erse features are noti!ed

regarding the promoters or the entities with whi!h the promoters are asso!iated6 the R$ ma' impose

additional !onditions or e4en withdraw the in5prin!iple appro4al

;i!enses were issued on a 4er' sele!ti4e basis to the appli!ants that !onformed to the required

!onditions6 who had spotless tra!7 re!ord and were li7el' to !onform to the best standards of !ustomer

ser4i!e and effi!ien!' R$ adopted a !autious approa!h in li!ensing Pa'ments an7s in the initial

'ears ased on the eBperien!e gained6 it ma' suitabl' re4ise the approa!h

RE-ISTRATION AND RE-ULATION

Pa'ments ban7s will be required to use the words 9Pa'ments an7? in their name in order to

differentiate them from other ban7s The' are registered as publi! limited !ompanies under the

Companies A!t6 3()*6 and li!ensed under the an7ing Regulation A!t6 ),+,6 with li!ensing !onditions

restri!ting their a!ti4ities mainl' to a!!eptan!e of demand deposits and pro4ision of pa'ments and

remittan!e ser4i!es The in5prin!iple appro4al will be 4alid for a period of )- months6 during whi!hthe appli!ants ha4e to !ompl' with the requirements under the guidelines and fulfil the other !onditions

as ma' be required b' the Reser4e an7 The' are go4erned b' the an7ing Regulation A!t6 ),+,L the

Reser4e an7 of $ndia A!t6 ),*+L the .oreign EB!hange Management A!t6 ),,,L the Pa'ment and

Settlement S'stems A!t6 3((KL other rele4ant statutes and dire!ti4es6 and Prudential regulations and

other guidelines2instru!tions issued b' R$ and other regulators from time to time

A pa'ments ban7 will be gi4en s!heduled ban7 status on!e it !ommen!es operations6 and is found

suitable as per the Reser4e an7 of $ndia A!t6 ),*+

A pa'ments ban7 !annot set up subsidiaries to underta7e non5ban7ing finan!ial ser4i!es An' other

finan!ial and non5finan!ial ser4i!es pro4ided b' the promoters will be 7ept distin!tl' awa' from the

business of the pa'ments ban7

OB8ECTIVE OF SETTIN- UP OF PAYMENTS BANKS


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Transa!tions and sa4ings a!!ounts are needed for that part of the population that is still out of the

finan!ial s'stem hen a person ma7es a remittan!e6 it has both ma!roe!onomi! benefits for the region

where the amount is re!ei4ed and mi!roe!onomi! benefit for the persons re!ei4ing su!h amount


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management s'stems and !ontrols to enable offering transa!tional ser4i!es on the internet $t will be

required to !ompl' with R$ instru!tions on internet ban7ingL and information se!urit'6 ele!troni!

ban7ing6 te!hnolog' ris7 management and !'ber frauds

@% Pa'ments ban7s !an6 after getting appro4als from R$6 handle !ross border remittan!e transa!tions

in the nature of personal pa'ments 2 remittan!es

K% A pa'ment ban7 ma' underta7e pa'ment of utilit' bills6 et! on behalf of its !ustomers and general

publi!

-% Pa'ments ban7s !an also underta7e other non5ris7 sharing simple finan!ial ser4i!es a!ti4ities su!h as

distribution of mutual fund6 insuran!e6 pension produ!ts6 et! $f it does not require an' !ommitment of

their own funds6 and with the prior appro4al of the R$ .or this purpose6 the' are also required to

!ompl' with the requirements of the regulators for su!h produ!ts

SHAREHOLDIN-

The minimum paid5up !apital for a pa'ments ban7 is Rs )(( !rore No maBimum shareholding limit

for promoter is pres!ribed This is be!ause a pa'ments ban7 !annot underta7e lending a!ti4ities $t is

not mandator' to ha4e a di4ersified ownership stru!ture .oreign shareholding is permitted as per the

.&$ poli!' for pri4ate se!tor ban7s as amended from time to time Presentl'6 foreign in4estment in a

pri4ate se!tor ban7 is allowed up to K+ per!ent of the paid5up !apital of the ban7 /p to +, per!ent6

automati! appro4al is granted e'ond +, per!ent6 prior appro4al is required At least 3@ per !ent of

the paid5up !apital has to be held b' residents The ban7 should !ompl' with the !orporate go4ernan!e

guidelines as issued b' R$ from time to time

ABOUT THE APPLICANTS

Adt(! Br*! Nu4# L'ted

Adit'a irla Nu4o ;imited is a /S + billion !onglomerate b' re4enue si0e $t is part of the /S +)

billion $ndian multinational Adit'a irla 1roup whi!h has operations in *@ !ountries a!ross the globe

Adit'a irla Nu4o is present a!ross .inan!ial Ser4i!es6 Tele!om6 .ashion and ;ifest'le and

Manufa!turing usinesses $t has the following 8oint 4entures and subsidiar' !ompanies

a $dea Cellular ;imited6 whi!h is among the top three !ellular operators in $ndia in terms of


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re4enue mar7et share b irla Sun ;ife $nsuran!e Co ;imited6 whi!h is among the top fi4e pri4ate se!tor life insuran!e

!ompanies in $ndia in terms of assets under management! irla Sun ;ife Asset Management Co ;imited whi!h is the fourth largest asset management

!ompan' in $ndia6 in terms of assets under management

d Pantaloons .ashion # Retail ;imited6 whi!h is among the top three large format fashion

retailers in $ndia

Arte* M C#''er"e Ser4"e+ L'ted

Airtel M Commer!e Ser4i!es ;td pro4ides ele!troni! pa'ment ser4i!es $t offers a prepaid pa'ment

s'stem whi!h runs under the brand name Airtel Mone' $t operates as a subsidiar' of harti Airtel

;imited and was founded in 3() $t is based in 1urgaon6 $ndia

harti Airtel ;imited is a leading global tele!ommuni!ations !ompan' $t has operations in 3( !ountries

a!ross Asia and Afri!a with its headquarters in New &elhi6 $ndia $t ran7s amongst the top + mobile

ser4i!e pro4iders in the world in terms of subs!ribers $n $ndia6 its produ!t offerings in!lude 316 *1

and +1 wireless ser4i!es6 $PT:6 fiBed line ser4i!es6 mobile !ommer!e6 high speed &S; broadband6

&T


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Chola operates from o4er G(( bran!hes a!ross $ndia with assets under management abo4e Rs 3G6(((

Crores Cholamandalam Se!urities ;imited "CSEC% is another subsidiar' of the group Chola has a

growing !lientele of o4er KG la7h !ustomers

Murugappa 1roup6 parent of C&S;6 is headquartered in Chennai $t is a mar7et leader in auto

!omponents6 fertili0ers6 !'!les6 farm inputs6 sugar6 plantations6 bio5produ!ts and nutra!euti!als The

1roup has forged strong allian!es with leading international !ompanies The 1roup has a wide

geographi!al presen!e6 with manufa!turing lo!ations in )* states in $ndia6 and mar7eting presen!e

a!ross $ndia and G !ontinents

De5!rt'ent #$ P#+t 9Ind! P#+t:

The &epartment of Posts !omes under the Ministr' of Communi!ations and $nformation Te!hnolog'

The apeB management bod' of the &epartment6 !omprises the Chairman and siB Members The siB

members of the oard hold portfolios of personnel6 operations6 te!hnolog'6 postal life insuran!e6

human resour!es de4elopment6 and planning

The &epartment of Posts has been the ba!7bone of !ommuni!ation in the !ountr' and has pla'ed a!ru!ial role in its so!io5e!onomi! de4elopment for more than )G( 'ears $t offers the ser4i!es of

deli4ering mails6 a!!epting deposits under small sa4ings s!hemes6 pro4iding life insuran!e !o4er and

pro4iding retail ser4i!es li7e bill !olle!tion6 sale of forms6 and more Moreo4er6 it a!ts as an agent for

1o4ernment of $ndia in dis!harging other ser4i!es for !iti0ens su!h as Mahatma 1andhi National Rural

Emplo'ment 1uarantee S!heme wage disbursement and old age pension pa'ments ith more than )G

la! post offi!es as at the end of finan!ial 'ear 3()*53()+6 the &epartment of Post has the most widel'

distributed postal networ7 in the world

Fn# P!(Te"h L'ted

.$NO Pa'Te!h was founded in6 3((@ and is headquartered in Mumbai $t !laims to be the largest


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business !orrespondent in $ndia6 offering a wide range of ser4i!es at low !ost on a se!ure6 trusted and

robust te!hnolog' platform .ino has enabled ser4i!es for G( million !ustomers with more than *(

thousand transa!tion points in +3K distri!ts a!ross 3@ states in $ndia

$t is a pioneer of business !orrespondent model in $ndia $t !arried out the 4ision of the Reser4e an7

of ensuring a!!ess to finan!ial produ!ts and ser4i!es needed b' all se!tions of the so!iet' in general

and 4ulnerable groups li7e wea7er se!tions and low in!ome groups in parti!ular all at an affordable

!ost and in a transparent manner $t !laims that its low !ost te!hnolog' not onl' brought ban7ing

ser4i!es to the masses but also enabled go4ernment to deli4er welfare programmes as part of finan!ial

in!lusion pro!ess

N!t#n!* Se"urte+ De5#+t#r( L'ted

NS&; was established in August 3((@ $t is the first and largest depositor' in $ndia $t was promoted b'

institutions of national stature responsible for e!onomi! de4elopment of the !ountr' $t has established

a national infrastru!ture of qualit' agreed b' international standards that handles most of the se!urities

held and settled in dematerialised form in the $ndian !apital mar7et

The paper5based settlement of trades !aused substantial problems li7e bad deli4er' and dela'ed transfer

of title till The ena!tment of &epositories6 ),,@@ pa4ed the wa' for establishment of NS&;

NS&; supports in4estors and bro7ers in the !apital mar7et using inno4ati4e and fleBible te!hnolog'

s'stems $t aims at ensuring the safet' and soundness of $ndian mar7etpla!es b' de4eloping settlement

solutions that in!rease effi!ien!'6 minimi0e ris7 and redu!e !osts $t pla's a !entral role in de4eloping

produ!ts and ser4i!es that will !ontinue to meet the growing needs of the finan!ial ser4i!es industr'

Re*!n"e Indu+tre+ L'ted

Relian!e $ndustries ;imited is a pri4ate se!tor !ompan'6 with business in a wide range of produ!ts and

ser4i!es The Compan' operates in four segments refining6 petro!hemi!als6 oil # gas and organi0ed


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retail The petro!hemi!als segment in!ludes produ!tion and mar7eting operations of a 4er' wide range

of petro!hemi!al produ!ts6 su!h as purified terephthali! a!id6 paraB'lene6 eth'lene gl'!ol6 butadiene6

a!r'lonitrile6 !austi! soda pol'eth'lene6 pol'prop'lene6 pol'4in'l !hloride6 pol' butadiene rubber6

pol'ester 'arn6 pol'ester fiber6 olefins6 aromati!s6 linear al7'l ben0ene6 and pol'eth'lene terephthalate

The refining segment in!ludes produ!tion and mar7eting operations of the petroleum produ!ts The oil

and gas segment in!ludes eBploration6 de4elopment and produ!tion of !rude oil and natural gas The

organi0ed retail segment in!ludes organi0ed retail business Moreo4er6 it has operations in the teBtile6

SE de4elopment6 tele!om2broadband business and media se!tors

The !ompan' is the largest pri4ate se!tor !ompan' on all ma8or finan!ial parameters in $ndia $t is the

first pri4ate se!tor !ompan' from $ndia to show up in the .ortune 1lobal G(( list of orlds ;argest

Corporations and ran7s ))Kth amongst the worlds Top 3(( !ompanies in terms of profits $t operates

world5!lass manufa!turing fa!ilities a!ross the !ountr' at Allahabad6 Nagpur6 Naroda6 Patalganga6

&ahe86


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Te!h Mahindra is part of the )3G billion Mahindra 1roup Mahindra 1roup is in partnership with

ritish Tele!ommuni!ations pl!6 one of the worldIs leading !ommuni!ations ser4i!e pro4iders6 for Te!h

Mahindra Te!h Mahindra ir primaril' fo!used on the tele!ommuni!ations industr' $t is a leading business transformation !onsulting organi0ation Te!h Mahindra has re!entl' eBpanded its $T portfolio

b' a!quiring the leading global business and information te!hnolog' ser4i!es !ompan'6 Mahindra

Sat'am The !ompan' has been in4ol4ed in about - transformation programs of in!umbent tele!om

operators $ts !lient list in!ludes big !ompanies li7e ritish Tele!om "T%6 AT#T6 Motorola and

Al!atel;u!ent T !ontributes @( to its re4enues

Mahindra # Mahindra was established in ),+G $t is the onl' $ndian !ompan' among the top three

tra!tor manufa!turers in the world $t has a leading presen!e in 7e' se!tors of the $ndian e!onom' $t

boasts about fift' thousand emplo'ees

V#d!$#ne ';5e+! L'ted

:odafone 1roup is a mobile !ommuni!ations !ompan' whi!h pro4ides ser4i!es to mobile 4oi!e6

messaging6 data and fiBed line $ts mone' transfer ser4i!e6 M5Pesa6 enables people in emerging

mar7ets6 to send and re!ei4e mone' through a mobile phone The Compan' also has produ!ts su!h as

international mone' transfer6 sa4ings and loans6 salar' disbursements and a!!ess to insuran!e produ!ts

in different mar7ets

:odafone $ndia is a subsidiar' of :odafone 1roup $t !ommen!ed operations in ),,+ when its

prede!essor


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CHAPTER III


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REVIE, OF LITERATURE AND

CONCEPTUAL FRAME,ORK


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et= Centr!* B#!rd Me'&er= Re+er4e B!n> #$ Ind!= 8!nu!r(

0?/2

Prepaid $nstrument Pro4iders ha4e been pro4ided relaBed >=C requirements for their !ustomers in

eB!hange for limit on the 4alue of transa!tion amounts to Rs G(6((( and restri!ting !ash5out to ban7ing

outlets alone As the PP$ s'stem is intended to be s!aled up6 the manner in whi!h a !ustomer is to be

identified and authenti!ated and how fraud ris7s are minimi0ed6 be!omes 4er' important

At present PP$s are not allowed to pa' interest on the balan!es held b' them 1i4en that su!h balan!es

ma' represent substantial amounts relati4e to the sa4ings of low5in!ome households6 it is 4er'

important to find a me!hanism to pa' interest on these balan!es


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There is a !on!ern regarding !andidates that are mobile phone !ompanies or their subsidiaries These

!ould potentiall' see a !onfli!t of interest while ser4ing other ban7s and operating as independent

Pa'ments an7s at the same time To sol4e this issue6 the Committee re!ommended that all mobile

phone !ompanies must be mandated to pro4ide /SS& !onne!ti4it' as per TRA$ regulations with the

pri!e !ap of Rs )G per G intera!ti4e sessions Also6 the' shall be mandated to !lassif' all SMSs related

to ban7ing and finan!ial transa!tions as Priorit' SMS ser4i!es with reasonable rates There are

!on!erns about the 4iabilit' of Pa'ments an7 but dis!ussions of the Committee with eBisting

pro4iders suggest that with adequate regulation6 the mar7et will be eBtremel' !ompetiti4e with

parti!ipation of both big and small pla'ers6 parti!ularl' if neutral but proportionate regulation is applied

to them

1i4en the diffi!ulties that are fa!ed b' PP$s and the underl'ing Prudential !on!erns asso!iated with this

model6 the eBisting and new PP$ appli!ants should instead be required to appl' for a Pa'ments an7

li!ense or be!ome usiness Correspondents No additional PP$ li!enses should be granted

R$ should wor7 with Tele!om Regulator' Authorit' of $ndia to ensure that all mobile networ7

!ompanies6 in!luding those with Pa'ments an7 business6 be mandated to pro4ide /SS& !onne!ti4it'

as per TRA$ regulations and !ategori0e all SMSs related to ban7ing and finan!ial transa!tions as

Priorit' SMS ser4i!es with reasonable rates

"RBI Guidelines for Licensing of Paments Ban! #pportunities and Challenges" = De*#tte T#u"he

T#h'!t+u Ind! Pr4!te L'ted= DLF C(&er Ct( C#'5*e7 Ph!+e II= -urg!#n= H!r(!n!=

De"e'&er 0?/2

The persons or organi0ations eligible to set up a Pa'ments an7 in!lude entities su!h as indi4idualsLnon5ban7ing finan!e !ompanies6 !orporate business !orrespondents6 mobile telephone !ompanies6

supermar7et !hains6 !ooperati4esL that are owned and !ontrolled b' residentsL and publi! se!tor

entities A promoter group !an form a 8oint 4enture with an eBisting s!heduled !ommer!ial ban7 to set

up a Pa'ments an7 Operations of a pa'ments ban7 should be te!hnolog' dri4en from the beginning

and !onform to generall' a!!epted standards and norms New approa!hes su!h as for data storage6


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se!urit' and real time data update are en!ouraged A detailed te!hnolog' plan for that should be

submitted to the R$

The Reser4e an7 of $ndia6 the s!heduled and non5s!heduled ban7s6 the $ndian 1o4ernment and other

sta7eholders ha4e all ta7en up a number of initiati4es in the past to further the eBtent of finan!ialin!lusion in the !ountr' Some of these initiati4es in!lude S


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other ser4i!es that other ban7s !an pro4ide A uni4ersal ban7 will ha4e an edge o4er pa'ments ban7s

due to its larger portfolio of ser4i!es

3 Regulator' requirements

Tough regulator' requirements will dri4e down profitabilit' This is espe!iall' the !ase with the

regulations on in4estments As pa'ments ban7s !an onl' in4est in go4ernment se!urities of one 'ear

maturit'6 the return on their in4estments will be !onsiderabl' limited

* Ensuring sustained profitabilit'

Ensuring sustained profitabilit' will be another !hallenge fa!ing pa'ments ban7s As pa'ments ban7s

will pro4ide ser4i!es to people eB!luded from !urrent finan!ial s'stem in a !ost effe!ti4e manner and

on small ti!7et transa!tions6 it will be diffi!ult to maintain the margins

A pa'ments ban7 would earn re4enues primaril' from the following a!ti4ities

"a% .ee and !ommission in!ome from pa'ments and remittan!e ser4i!es6 the business !orrespondent

business and from the distribution of non5ris7 sharing finan!ial produ!ts su!h as mutual funds6

insuran!e poli!ies and pension produ!ts

"b% $nterest in!ome from the differen!e between the interest earned from in4esting in appro4ed

se!urities and treasur' bills with maturit' of up to one 'ear and in !urrent and fiBed deposits with other

s!heduled !ommer!ial ban7s and the interest paid against !urrent and sa4ings deposits The spread

in!ome will be limited due to the nature of in4ements allowed

A Pa'ments an7 !annot set up subsidiaries to pro4ide non5ban7ing finan!ial ser4i!es be!ause of

whi!h it would not be able to di4ersif' into those a!ti4ities The R$ mandates that the Pa'ments an7

should fo!us their efforts on the allowed a!ti4ities and should not underta7e undue ris7s of eBpanding

to other a!ti4ities The other finan!ial and non5finan!ial ser4i!es pro4ided b' the promoters should be

7ept distin!tl' awa' from the business of the Pa'ments an7 A Pa'ments an7 will be required to use

the words 9Pa'ments an7? in its name in order to differentiate it from other ban7s The guidelines

suggest a !omplete ring fen!ing of the Pa'ments an7Is business The R$ wants the appli!ants to treatthe Pa'ments an7 business as an independent business so as to a4oid an' !onfli!t of interest and

eliminate an' dependen!e of the ban7ing business of a pa'ments ban7 on the su!!ess or failure of other

businesses of an appli!ant

The requirement of Rs )(( !rore minimum paid5up !apital will ensure that the pa'ments ban7 is able


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to in4est hea4il' in te!hnologi!al infrastru!ture for its operations using this !apital Maintaining a

minimum equit' !apital would be important be!ause a pa'ments ban7 will be eBposed to operational

ris7 A lower !apital requirement of Rs )(( !rore as !ompared to the minimum requirement of Rs G((

!rores for a uni4ersal ban7 li!ense implies the fa!t that the Pa'ments an7 business model is a low5ris7

business The guidelines do not put restri!tions on foreign shareholding as stri!tl' as that for the

uni4ersal ban7 li!ensees ith lenient restri!tions on foreign shareholding6 this spa!e ma' see

signifi!ant mergers and a!quisitions

As a Pa'ments an7 !annot grant loans and ad4an!es6 it is not ne!essar' for it to ha4e a di4ersified

ownership stru!ture Therefore6 no maBimum shareholding limit for promoters is pres!ribed b' the

Reser4e an7 The promoters should6 howe4er6 hold at least +( of the paid5up equit' !apital for the

first fi4e 'ears The guidelines intend to !reate an ownership stru!ture that minimi0es the !han!es of

an' !onfli!t6 dispute or disagreement The guidelines do not mandate !ompulsor' ownership dilution

whi!h ma' en!ourage the promoters to fo!us on !reating 4alue in the business

$f a Pa'ments an7 rea!hes the net worth of Rs G(( !rore and thereb' be!omes s'stemi!all'

important6 di4ersified ownership will be mandator' within three 'ears A Pa'ments an7 ha4ing net

worth of below Rs G(( !rore !ould also get its shares listed 4oluntaril' The R$ per!ei4es that on!e a

Pa'ments an7 brea!hes the Rs G(( !rore barrier6 whi!h in fa!t is the minimum !apital required to

start a uni4ersal ban76 it would ha4e attained a signifi!ant si0e and s!ale &ue to this6 the R$ would

push for di4ersifi!ation of the shareholding as well as bringing the ban7 under the SE$ with additional

requirements for reporting6 !orporate go4ernan!e6 et! Ma8orit' of oard of &ire!tor of a pa'ments

ban7 should be independent &ire!tors The ban7 should !ompl' with the !orporate go4ernan!e

guidelines in!luding Qfit and properI !riteria for &ire!tors as issued b' R$ This will ensure the best

!orporate go4ernan!e pra!ti!es right from the !ommen!ement of business

"Paments Ban!s $he Challenger Ban!s in India"= KPM- Ind!= DLF C(&er Ct( C#'5*e7

Ph!+e II= -urg!#n= H!r(!n!= Se5te'&er 0?/3

$t is eBpe!ted that pa'ments ban7s would re4olutioni0e finan!ial ser4i!es industr' in the same wa' as

e5!ommer!e has transformed the retail industr' ith )) new li!enses in the pa'ments ban7 !ategor'

and more to follow in the small finan!e ban7 di4ision6 these new ban7s ha4e to be !onsidered as


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Q!hallenger ban7s Their su!!ess is li7el' to depend on the wa' the' approa!h the mar7et and the 4alue

propositions the' !reate :arious mar7et for!es are !oming up to !hallenge the position of established

big ban7s and these ma' shift the balan!e of power in fa4or of the pa'ments ban7s for sele!ted ban7ing

ser4i!es

Pa'ments ban7s need to de4elop themsel4es as a multi5la'ered platform that not onl' dri4es finan!ial

transa!tions but also ensures !ontinuous engagement This !an be a!hie4ed with the help of a ri!h

repositor' of tools and fun!tionalities6 that lead to a finan!ial transa!tionL for eBample6 !redit !ard

pa'ment reminders that leads to a pa'ment The su!!ess of the business of pa'ments ban7s depends

upon pro4iding last mile !onne!ti4it' and pa'ment fa!ilit' through either ph'si!al points or digital

interfa!es ith a limited portfolio of offerings and a !apped deposit a!!ount6 persuading !ustomers to

swit!h from their primar' ban7s !ompletel' !an be an uphill tas7 $t is ne!essar' for pa'ments ban7s to

address these !hallenges upfront as the' finali0e their business strateg'

Other than basi! deposits and remittan!e ser4i!es6 pa'ments ban7s are eBpe!ted to introdu!e smooth6

real5time6 and se!ure approa!hes for fa!ilitating retail pa'ments


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signifi!antl' ' the time it !on4erts into a pa'ments ban76 Pa'tm !ould ha4e more than G( million

a!ti4e users on its platform This !an pro4ide Pa'tm a foundation for offering a host of ban7ing and

related ser4i!es to its large !ustomer base >PM1 belie4es that the manifestation of the requirement of

ph'si!al bran!hes !ould be 4er' different for pa'ments ban7s The' !an use their eBisting networ7

infrastru!ture6 along with in!reasing the eBtent of their rea!h through business !orrespondents6 as well

as introdu!e Qlean bran!hesI to manage operational !osts6 espe!iall' in the hinterlands >PM1 also

belie4es that the approa!h for metros and urban areas !ould be different

As per a >PM15/S stud'6 users of digital ban7ing !hannels are more li7el' to swit!h their ban7 This

ma' be due to underl'ing demographi!s fa!tors6 as these users are 'oung6 e!onomi!all' more a!ti4e

and potentiall' more demanding in eBpe!tations Pa'ments ban7s must fo!us on in!reasing the usage of

their ser4i!es and not on !hasing !ustomer enrolments Their information s'stem must also be geared to

measure the a!ti4e !ustomer base

.or uni4ersal ban7s6 the introdu!tion of >now =our Customer regulations meant deterring fraud and

mone' laundering and ensuring !omplian!e


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Profitabilit' of pa'ments ban7s !ould be highl' sensiti4e to transa!tion 4olumes and gaining masses of

!ustomers The !hannel miB through whi!h transa!tions will be !ondu!ted !an also ha4e a signifi!ant

impa!t on o4erall profitabilit' Pa'ments ban7s are eBpe!ted to push adoption of lower !ost digital

!hannels right from the start of their ban7ing relationships As per the >PM1/S stud'6 the !ost of

!ondu!ting a transa!tion from a bran!h is almost +* times more than mobile transa!tions .or !all5

!enters and ATMs it is )* times higher6 and for internet ban7ing it is twi!e as high as !ompared to

mobile transa!tions As a result6 pa'ments ban7s should aim to promote and in!enti4ise adoption and

usage of mobile transa!tions to all !ustomer segments

Considerations before setting up pa'ments ban7s as per >PM1 are

) Prote!t the !ore business

Just as retaining eBisting !ustomers is as !ru!ial as a!quiring new ones6 prote!ting eBisting businesses

is as important as !reating new ones Managing the transition with minimal disruption to eBisting

businesses6 and at the same time using the strength of eBisting businesses will be !ru!ial in defining

su!!ess

3 uild both digital and human !apabilities

There needs to be a human element to the !ustomer interfa!e6 e4en when the entire e!os'stem needs to

be digital The interfa!e !ould be 4oi!e6 4ideo or fa!e to fa!e but there is a need for a more human

eBperien!e for better !ustomer eBperien!e

* /se anal'ti!s to !reate a !ustomer5rele4ant platform

&ata dri4en de!ision5ma7ing is eBpe!ted to be a digital differentiator to pro4ide insights6 to enable a

more appealing approa!h to engage with !ustomers and retain !ustomers in the long run

+ /n!ommon allian!e

The need to address !ustomer requirements ma' require allian!es with traditional ban7s and other

in!umbents or e4en !ompetitors $dentif'ing right partners with !omplementar' s7ills !ould also be a

differentiator for the business

G Reassess and re4alidate business strateg'Strategies de4eloped in the limited time frame pro4ided during the appli!ations phase6 will requirere4alidation or e4en redesign to deepen business models


34/53

CHAPTER IV


35/53

ANALYSIS AND INTERPRETATION

OF DATA


36/53

A,ARENESS ABOUT THE CONCEPT OF PAYMENTS BANKS

To !he!7 awareness about the !on!ept of pa'ments ban7 in the publi!6 a question was in!luded in the

sur4e' as7ing the respondents about how mu!h the' belie4e the' 7now about this !on!ept .i4e options

were gi4en to the respondents The first option HNe4er heard of itH meant that the respondent did not

e4en hear about the eBisten!e of pa'ments ban7s On the other eBtreme6 the option H$ 7now

e4er'thingH meant that the respondent 7new e4er'thing that a person !an reasonabl' 7now about the

!on!ept of pa'ments ban7s etween these were the options H$4e onl' heard about itH6 H$ 7now a bitH6and H$ 7now a lotH

Ch!rt /% A@!rene++ !ut the "#n"e5t #$ 5!('ent+ &!n>

S#ur"e% Pr'!r( d!t! "#**e"ted thr#ugh +ur4e(

A ma8orit' of the respondents de!lared that the' had ne4er heard about the !on!ept of pa'ments ban7s


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before6 while about a quarter said that the' had onl' heard about the eBisten!e of pa'ments ban7s K-

per!ent of the respondents had little to no idea about the !on!ept of pa'ments ban7s Onl' 3

respondents !laimed that the' 7new e4er'thing about pa'ments ban7s whereas onl' K per!ent felt the'

7new enough about the sub8e!t matter )G respondents said the' had some idea about what pa'ments

ban7s are $t is !lear that the awareness in the publi! about the !on!ept of pa'ments ban7s is 4er' low

PREFERENCE TO USE THE SERVICES OF PAYMENTS BANKS

$t was eBpe!ted that at least some respondent would not ha4e 7nowledge about the !on!ept of pa'ments

ban7s So6 to measure the amount of preferen!e to use the ser4i!es of pa'ments ban7s6 first a brief

eBplanation of the sub8e!t matter was gi4en in the question itself After that6 the respondents were

dire!tl' as7ed whether the' were interest in using the ser4i!es of pa'ments ban7s .or this purpose6 a

fi4e point inter4al s!ale was used where ) meant HNe4erH6 that is6 the respondent would ne4er use theser4i!es of a pa'ments ban76 and G meant H&efinitel'H6 that is6 the respondent was sure enough to use

the ser4i!es of the pa'ments ban7s definitel'

Ch!rt 0% Pre$eren"e t# u+e 5!('ent+ &!n>+



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About one5third of the respondents stated that the' would ne4er use the ser4i!es of the pa'ments ban7s

while onl' )( per!ent stated that the' would definitel' use it More than half6 and G- per!ent to be

eBa!t6 !hoose the options other than the eBtreme ones hile one5third of the respondents de!lared that

the' dont want to use the ser4i!es for sure6 it is possible for pa'ments ban7s !ompanies to lure the rest

of the two5thirds if the ser4i!es ha4e adequate benefits for them

MOST PREFERRED PAYMENTS BANK BRANDS

)) appli!ants were granted in5prin!ipal appro4al from R$ to a!t as pa'ments ban7s Out of these6 )(

appli!ants are in the form of !ompanies alread' One appli!ant6 &ilip Shangh4i6 has not 'et de!lared

under what !ompan' would he start the business of pa'ments ban7s &r!nd


$n this question6 an o4er5whelming number of respondents !hoose Pa'TM as there most preferred

brand in all pa'ments ban7s The other , brands6 !olle!ti4el'6 got less than half fa4orable responses as

!ompared to Pa'TM


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Pa'TM was Airtel with )* respondents sele!ting it as the most preferred brands6 followed b' :odafone

with , fa4orable responses None of the respondents !hose Cholamandalam6 $ndia Post6 and .ino

Pa'Te!h as their most preferred brand6 while NS&;6 Adit'a irla Nu4o and Te!h Mahindra also

!olle!ti4el' got less than G per!ent fa4orable responses

MOST IMPORTANT FEATURES OF PAYMENTS BANKS

To measure the importan!e of different features of pa'ments methods to the benefi!iaries6 the

respondents were as7ed to ran7 different features from ) to K6 where ) meant most important and K

meant least important The se4en features were a!!eptabilit' at man' pla!es6 whi!h means the

pa'ment method is a!!epted for pa'ment at a lot of pla!esL se!urit'6 whi!h refers to how se!ure the

platform is from ha!7ers and unauthori0ed usersL qui!7ness6 whi!h means how fast is the transa!tion

settled b' a parti!ular pa'ment method6 promotional offers6 whi!h means the !ashba!7s6 promo !odes6et! a4ailable for the pa'ment method6 stabilit' and reliabilit'6 whi!h signifies how stable and reliable a

parti!ular platform is in da'5to5da' use6 for eBample6 downtime6 transa!tion failure6 et!6 fleBibilit'6

whi!h meant how eas' were different formalities regarding opening and !losing a!!ount6 et!6 and !ost

of ser4i!e6 that is how mu!h !harges are paid to use that pa'ment method

To measure the amount of o4erall preferen!e6 different weights were gi4en to different ran7 Ran7 )

was gi4en a weight of K6 and redu!ing the weight b' one at ea!h neBt ran76 the ran7 K was gi4en weight

) &ifferent ran7 !ounts of e4er' feature were multiplied b' their respe!ti4e weight and the produ!t of

all the ran7s of a feature were added to gi4e a final s!ore

Ch!rt 2% Re*!t4e '5#rt!n"e #$ '#+t '5#rt!nt $e!ture+ #$ 5!('ent+ 'eth#d+


40/53


The highest s!ore was re!ei4ed b' a!!eptabilit' at man' pla!es6 followed b' !ost of ser4i!e $t has to

be remembered that the respondents were not as7ed to !hoose the features that the' !onsider as

important but rather ran7 the features in terms of their importan!e This meant that e4en if the'

!onsidered all the features as important6 the' had to gi4e last ran7 to one of the features an'wa' $t is

quite !lear from the abo4e graph that qui!7ness in settling the transa!tion was gi4en the least relati4e

importan!e

PREFERENCE FOR PAYMENTS BANKS A-AINST SUBSTITUTES

To as!ertain how pa'ments ban7s fared as !ompared to their substitutes6 that is6 to measure the amount

of preferen!e for pa'ments ban7s against substitutes6 the respondent were gi4en a set of ten

transa!tions .or ea!h transa!tion6 a respondent had to !hoose one out of four pa'ment methods that

he2she would use to ma7e that transa!tion The four pa'ment methods out of whi!h a respondent had to

!hoose one were6 primar' ban7 a!!ount6 pa'ments ban7 a!!ount6 !redit !ard6 and mobile wallet

Ch!rt 3% Pre$eren"e $#r 5!('ent+ &!n> !g!n+t +u&+ttute+ 5!rt /


41/53


.or utilit' bills6 no pa'ment method was gi4en an o4erall preferen!e b' the respondents !olle!ti4el'

Pa'ments ban7 was the least preferred method but the differen!e between its s!ore and other methods

was not 4er' high $n !ase of pa'ments for re!harges6 mobile wallet was !lear winner Almost half the

respondents !hoose mobile wallet6 followed b' pa'ments ban76 whi!h garnered almost one5fourth of

the responses .or online ti!7et boo7ing6 the pi!ture was about the opposite of re!harges Mobile

wallets were least preferred and primar' ban7 a!!ount was most preferred $n !ase of insuran!e and

EM$s6 primar' ban7 a!!ount got a !lear ma8orit' with GK respondent !hoosing it o4er other methods

Mobile wallets got 4er' less responses6 while pa'ments ban7 also got low !hoi!es $n !ase of

petrol2diesel6 pa'ments ban7 got the most fa4orable responses followed b' primar' ban7 a!!ount oth

!ombined got more than -( per!ent of fa4orable responses Credit !ard and mobile wallets fared 4er'

poorl' here

Ch!rt % Pre$eren"e $#r 5!('ent+ &!n> !g!n+t +u&+ttute+ 5!rt 0


42/53


$n !ase of retail pur!hases6 !redit !ard was the preferred option for most respondents6 while pa'ments

ban7 and mobile wallet got half the number of fa4orable responses as !redit !ards $n !ase of e5

!ommer!e transa!tions6 !redit !ard and pa'ments ban7s !olle!ti4el' got @( per!ent of the responses

.or food !hains6 again !redit !ard was the most preferred option for man' respondents6 followed b'

pa'ments ban7s .or pa'ments of mis!ellaneous websites6 the out!ome was 4er' interesting hile

!redit !ards !ould not get e4en G per!ent of the responses6 mobile wallet was !hosen b' almost half the

number of respondents6 and a huge ma8orit' of -K respondents !hoose either pa'ments ban7 or mobile

wallet ;astl'6 for restaurant and hotel pa'ments6 +) respondents !hoose !redit !ard while both the

primar' ban7 a!!ount and pa'ments ban7 a!!ount got one5fourth responses ea!h Mobile wallet fared

poorl' in the respondents for this transa!tion

RELATIONSHIP BET,EEN ANNUAL INCOME AND PREFERRENCE TO

USE PAYMENTS BANKSTo !he!7 whether there eBists a relationship between annual in!ome and preferen!e to use the ser4i!es

of pa'ments ban7s6 !orrelation anal'sis was applied .irst data on annual in!ome and preferen!e was

gathered through sur4e' The option for annual in!ome ranged from Rs *6((6((( per annum to Rs

)36((6((( per annum )( options were gi4en to the respondents6 who were as7ed to !hoose the 4alue

that is !losest to their annual in!ome .or the benefit of the respondents6 !orresponding 4alues of


43/53

monthl' in!ome was also gi4en

The !olle!ted data was then inserted in an eB!el do!ument $n!ome and preferen!e of ea!h respondent

was entered separatel' to enable !al!ulations o4er the data EB!el was used to !ondu!t !orrelation

anal'sis due to sheer si0e of the data that was to be anal'0ed .un!tion CORRE; was used for this

purpose

Ch!rt % C#rre*!t#n An!*(++ #$ Annu!* n"#'e !nd Pre$eren"e t# u+e 5!('ent+ &!n>+


The !orrelation !oeffi!ient !al!ulated from the abo4e data is 5(@)

A negati4e !orrelation !oeffi!ient shows that in!ome and preferen!e were in4ersel' related to ea!h

other6 that is6 as the annual in!ome in!reased6 preferen!e to use the ser4i!es of pa'ments ban7s got

redu!ed


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CHAPTER V


45/53

CONCLUSION AND

RECOMMENDATIONS

CONCLUSION


46/53

Through anal'sis of the data !olle!ted from sur4e's of the benefi!iaries6 it is quite !lear that there is a

la!7 of awareness in the publi! about the !on!ept of pa'ments ban7 Not more than a quarter of the

respondents had adequate 7nowledge about the sub8e!t matter $n fa!t6 more than half of the

respondents did not 7now an'thing about pa'ments ban7s at all $t !an be easil' !on!luded that the

publi! is largel' unaware about the topi! Pa'ments ban7 !ompanies will require mar7eting to generate

awareness about themsel4es

$t !an be easil' seen from the anal'sis that the most preferred brand in pa'ments ban7 is Pa'TM

Pa'TM is easil' the most popular pa'ment ban7 brand at the moment Although6 none of the brands

ha4e 'et started mar7eting their ser4i!es to the general publi!6 Pa'TM has ad4antage o4er other brands

probabl' be!ause it is alread' in the business of mobile wallet6 whi!h is similar to the !on!ept of

pa'ments ban7s Some of the brands ha4e to ma7e eBtra efforts here be!ause the' are largel' un7nown

to the general publi! Also6 mobile networ7 !ompanies were seen to ha4e some ad4antage in this area

Another out!ome of the stud' that was negati4e for pa'ments ban7s was the fa!t that about a third of

the respondents were quite sure that the' dont want to use the ser4i!es of pa'ments ban7s at all $t will

be 4er' hard for pa'ments ban7 !ompanies to persuade these people to use their ser4i!es Onl' a tenth

of the respondents were 4er' eager to use their ser4i!es The perspe!ti4e of salaried people in east

&elhi about pa'ments ban7s is not 4er' positi4e

A!!eptabilit' at man' pla!es is the most important feature that a pa'ment method should ha4e

Respondents ha4e shown it 4er' !learl' that the general a!!eptan!e of a pa'ment method in the entire

finan!ial s'stem is a !ru!ial feature New pa'ment methods are supposed to in!rease !on4enien!e6 but

interestingl'6 qui!7ness in settling the transa!tion is relati4el' the least important feature of a pa'ment

method Cost of ser4i!e and promotional offers are also important attra!tions to the publi!

Against substitutes6 pa'ments ban7s ha4e a great ad4antage in the field of pa'ments for fuel and pa'ments at mis!ellaneous websites This is probabl' due to the fa!t that most !redit !ard !ompanies

!harge fuel sur!harge6 and people are not 4er' !omfortable in using their debit or !redit !ards at

mis!ellaneous websites for se!urit' reasons On the other hand6 in the field of pa'ments of insuran!e

premiums and EM$s6 pa'ments ban7s do not ha4e a positi4e outloo7


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There eBists a relationship between annual in!ome and preferen!e to use the ser4i!es of pa'ments

ban7s Preferen!e for pa'ments is in4ersel' proportional to annual in!ome As annual in!ome

in!reased6 preferen!e to use pa'ments ban7s de!reased This !an be seen through the result of

!orrelation anal'sis The !orrelation !oeffi!ient for annual in!ome and preferen!e for pa'ments ban7

was 5(@ This means a negati4e relationship


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method from the perspe!ti4e of !ustomers6 hen!e6 it is highl' re!ommended that pa'ments

ban7s ensure this feature

+ Cost of ser4i!e was !hosen the se!ond most important feature b' the respondents Pa'ments

ban7s are also ad4ised to ensure optimal effi!ien!' in their operations so that their !ost of

ser4i!e is low6 and preferabl' the lowest This was also !lear from the stud' that !ost of ma7ing

the transa!tion is also a 4er' important aspe!t of a pa'ment method for !onsumers Pa'ments

ban7s !an attra!t !ustomers with lowest !ost for ser4i!e against all substitutes

G hile pa'ments ban7s were originall' en4isaged for the people who are out of the !urrent

finan!ial s'stem6 e4en the ones who are present in it !an be potential !ustomers of pa'ments

ban7s


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o Mehra6 Poo8a "3()G%6 H All you need to know about payment banks" 6 Published in the newspaper

The


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o http22inreuters!om2finan!e2sto!7s2!ompan'Profiles'mbolRE;$O

o http22profitndt4!om2sto!72te!h5mahindra5ltdte!hm2reports

o http22inreuters!om2finan!e2sto!7s2!ompan'Profiles'mbol:O&;

http://in.reuters.com/finance/stocks/companyProfile?symbol=RELI.BOhttp://profit.ndtv.com/stock/tech-mahindra-ltd_techm/reportshttp://in.reuters.com/finance/stocks/companyProfile?symbol=VOD.Lhttp://in.reuters.com/finance/stocks/companyProfile?symbol=RELI.BOhttp://profit.ndtv.com/stock/tech-mahindra-ltd_techm/reportshttp://in.reuters.com/finance/stocks/companyProfile?symbol=VOD.L


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ANNEURE


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aaditya aggarwal

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