Payment banks: Spreading financial inclusion to rural India

Payment banks: Spreading financial inclusion to rural India

Code: ML-ML00019-038 | Published: Oct-2015 | Pages: 23 | MarketLine
Price :

* Required Fields



Financial inclusion is a pressing concern for India, and regulatory reform by the Reserve Bank of India (RBI) has permitted new entrants to set up payment banks. This case study assesses why financial inclusion is significant, and whether the reforms will succeed. It also looks at the success of mobile banking in Sub-Saharan Africa, and whether India has any lessons to learn from this development.

Key Findings
- Assessing financial inclusion, and how it can help to alleviate poverty in developing countries.
- Analysis of why the Indian banking system has so far failed to promote financial inclusion in one of the worlds largest economies.
- Highlighting where payment banks have so far been successful and evaluating whether this can be replicated in India.

Reasons To Buy
Why does only half of India have access to a bank account?
How successful has mobile banking been in Africa?
Will payment banks work in India?

Table of Contents

Financial inclusion is essential to reducing poverty
How financial inclusion benefits an economy
Indias financial system is dominated by the public sector
Indias strong growth but lackluster presence in the region
Bank accounts are less prominent in rural areas and among poorer citizens
Indias banking sector is dominated by the public sector
Public sector exposure to corporate loans pushing up non-performing assets
Pradhan Mantri Jan Dhan Yojana further expanded public sector influence
Private sector banks smaller but much more able to grow
Credit growth suffers as public sector attempts a detox
Lowest growth in deposits and credit since 1997
Public banks driving to improve balance sheets
The RBI has authorized licenses for "payment banks"
Payment banks will leverage telecoms infrastructure
Mobile banking has been successful in other developing countries
The success of Vodafones M-Pesa in Kenya
M-Pesa is a mobile money transfer system
M-Pesa benefitted from certain economic conditions
M-Pesa has since expanded elsewhere
Mobile banking is also impacting Indias neighbors
The downsides of mobile payments- limited financial inclusion
India would benefit from more efficient payments
Vodafones pilot schemes for government transfers have proved successful
Regulation for mobile money is not as accommodating in India
The Indian telecoms market is more fragmented
Cautionary tales from Telenor Pakistan
There will be a reluctance to switch to digital in rural India
M-Pesas previous struggles due to cultural resistance and regulatory restraint
Indias conglomerates have the scale to succeed
Other license winners have strong foundations too
Payment banks may yet succeed in India
Further Reading
Ask the analyst
About MarketLine

Report Format

Following are different modes of Licenses.

a. Single User License:
This license allows only one person to use the report. This person can use the report on any computer and may take print outs of the report but must take care of not sharing the report (or any information contained therein) with any other individual or people. Unless you purchase a Site License or a Global Site License, a Single User License must be purchased for every single person that wishes to use the report within the same enterprise.

b. Single Site License:
This license allows unlimited users to use the report within one company location, e.g. a regional office. These users can use the report on any computer and may take print outs of the report but must take care of not sharing the report (or any information contained therein) with any other individual or people.

c. Global Site License:
A Global Site License (or Enterprise wide Site License or Global License) is a license granted to original purchaser, who can share a report with other employees and authorized Users of the same organization.

Quick Help

1. How do you deliver the reports?
The delivery of reports is depends on format & mode of license of report(s). Following are different kinds of formats of report(s) and their delivery options :

a. Electronic Format – Through email from Publisher
Report will be sent to your username email address in PDF, Excel, PowerPoint or any other electronic / softcopy format by publisher.
Delivery Time: 12 to 48 hours [depending on time difference or occurrences of national holidays]

b. Hard Copy or Printed Format or CD-Rom – Through Mail or Courier from Publisher
Report will be sent through mail / courier delivery to your shipping address by publisher.
Delivery Time: Less than, few weeks [depending on time difference or occurrences of national holidays]

2. How can I make payment for publications I purchase?
You could be able to make the payment, in following ways:

a. Online Secure Payment through Credit Card Payment : We accept Visa, Master, AMEX Cards & CCAvenue
b. Transfer of fund to our bank account via Bank transfer or Wire transfer
c. Payment via DD or Cheque
d. Paypal

3. Is it safe to use my credit card on MarketinfoResearch?
Your personal information and online tranaction on Marketinfo Research is secure, private, and tamper-proof. All credit card payments are processed through secure and trusted payment gateways.

If you have a more question about our publications please see our FAQs section or contact us now at


There are no reports matching the selection.

Browse similar reports by category:
Banking, Finance & Insurance

Our Clients