“70% of transactions in India are performed through cash as most of the daily purchases are done through cash only without any payment gateway and technology with majority of the population is still underbanked. So, this is the need of some system that facilitates the electronic payment system that caters to the population which remains excluded from the banking sector. The electronic payment system also is the need of the hour today as it helps in removing the black money from the money market as every transaction is recorded automatically which not the case with cash transaction. To facilitate the above, the RBI recently issued the licenses of the Payment Banks to the private sector. They are different from the traditional banks as they have only the right of making transactions like payments through various gateways but not accepting deposits and dispersing loans as the traditional banks do. So, this helps in growing the digital space in the financial market.” Q1. “It’s difficult for payment banks to survive in long run”, Comment
“70% of transactions in India are performed through cash as most of the daily purchases are done through cash only without any payment gateway and technology with majority of the population is still underbanked. So, this is the need of some system that facilitates the electronic payment system that caters to the population which remains excluded from the banking sector. The electronic payment system also is the need of the hour today as it helps in removing the black money from the
transaction. To facilitate the above, the RBI recently issued the licenses of the Payment Banks to the private sector. They are different from the traditional banks as they have only the right of making transactions like payments through various gateways but not accepting deposits and dispersing loans as the traditional banks do. So, this helps in growing the digital space in the financial market.”
Q1. “It’s difficult for payment banks to survive in long run”, Comment?
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