Fintech & Payments, Payments Bank

Payments Bank Strategy – Its Not Fair

The “PAYMENTS Bank Strategy” (Personal View) – With current set of regulations unless relaxed, I Foresee that Payment bank will Either “Cease to Exist or Become a Small Finance Bank / Get merged with a Full fledged Bank”. It may take another TWIST and will become the Corporate BCs of Banks (Survival). Payment banks are ‘Stop Gap’ arrangement to drive technological changes in Banking industry and to challenge the Mammoths of the Industry. Nice move by RBI. #How Many Accounts a Person will open to be Financially Included ??? In India, through technology in Banking, you can just scratch the surface or go at maximum few levels below for the next 5 years. And survival of PBs for so long will be an issue, as they have to develop trust, system etc. Entities with Deep Pockets and Ears on ground will be winners but not as PBs, as it will be a different entity by then. Many jumped into this, as this was the Banking license and was considered Prestigious. But it should make business Sense too. Your Views Please.. #RelaxRegulations4PaymentBanks, #SameRoleDifferentRights

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