Indian banking a paradigm shift

Mr Knight discusses three important issues that are relevant to global banking:

Indian banking a paradigm shift

A Payment Bank operates just as a regular bank would, except for its lending rules.

Payment Banks: A Paradigm Shift in India’s Banking System? | Aranca

Payment banks can lend only to the government. This is the first time that the RBI has approved differential licensing with the intent of further financial inclusion.

Payments banks can service a significantly wider range of customers, who may be otherwise out of reach. Moreover, the proliferation of mobile banking would bolster the development of cash-less banking. Mobile devices could be a preferred medium of payment over time, becoming as prevalent as credit and debit cards.

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The success of these new banks would largely depend on them being profitable, relying on low-cost technology and significant transaction volumes to even the scales. Providing attractive returns in order to lure deposits will also be a significant hurdle to overcome.

Payment banks have been successful in developing countries such as the Philippines and Kenya. In Kenya, almost two out of three adults use Vodafone M-Pesa to store money, transfer funds, or make purchases.

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Stay updated on the areas that interest you.The Indian banking industry will witness one of the paradigm shifts in the recent history.

The RBI has given license to the 11 payment banks which will have an impact on the normal banking of the.

Indian banking a paradigm shift

The Reserve Bank of India (RBI) granted 'in-principle' approval to eleven entities that allows them to set up payment banks. Check out the eleven entities which are selected for Payment Banks. This can be a Paradigm Shift in India’s Banking System.

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Indian Banking and Finance – A Paradigm Shift: By Dr. N. Bharathi Lecturer School of Management Studies Karpagam University Coimbatore Banking Industry in India has travelIed a long path to assume its present status. Global banking - paradigm shift Speech by Malcolm D Knight, General Manager of the BIS at the Fourth Conference of the Federation of Indian Chambers of Commerce and Industry (FICCI), Mumbai, India, 5 .

75 Chapter – III CUSTOMER SERVICES IN INDIAN BANKING SECTOR: A PARADIGM SHIFT INTRODUCTION In the hypercompetitive banking environment it is viewed that prompt and. Jul 05,  · In its monetary policy statement for on 1 April , the Reserve Bank of India (RBI) announced that it would work on a framework for granting licences "on tap" to universal banks, and for granting of differentiated bank licences with the intent to "to expand the variety and efficiency of players in the banking system while maintaining financial stability".

Payment Banks: A Paradigm Shift in India’s Banking System? | Aranca