The Indian banking scenario is undergoing a major shift. A few years down the line ATM were considered a novelty in the Indian market. Currently, multiple ATMs can be seen in a radius of 1 kilometer. Furthermore, the online banking sector in the country is rapidly improving as well.
The massive population of the country is attracting several smartphone companies to launch affordable phones in the country. With the rising mobility empowered by smartphones, improved connectivity, and IT infrastructure, the country is witnessing the number of people accessing banks online rapidly increasing. Indian users are finding online banking convenient and safe and hence the number of people that prefer banking using their phones or PC is on the rise.
Another example that shows that the Indian online banking system is undergoing a drastic change can be seen in the move of Alibaba’s Paytm receiving permission along with 10 other institutions that can now offer their range of new financial services in the country. This move shows that major returns will be offered to the Alibaba-backed Paytm, which is currently the country’s largest digital wallet. Paytm will finally be able to introduce their digital banking to several millions of citizens of India.
Though payment banks won’t be able to lend money or offer credit cards similar to conventional banks in India do, they will be able to allow to do almost everything else. For instance, they will allow consumers to keep their money in deposit accounts and issue debit cards or able to process their utility payments.
Paytm after receiving the grant from the Reserve Bank of India will be able to capture substantial market share. According to the Paytm founder Sharma, they will do every justice to this opportunity granted to them. He further stated that backed by technology along with a sound structure at Paytm, they will bring half a billion Indians towards the mainstream economy by end of 2020.