The currency conundrum doesn’t seem to getting resolved anytime soon. As far as the sight goes, only chaos is seen. A suddenly demonetised economy has benefited several digital marketing systems such as e-wallet services like PayTM and Freecharge. Another new strategy to join the league is that of payment banks.
Last year, the Reserve Bank of India had granted 11 companies, the license to launch payment banks across India. The timing couldn’t have been better for Airtel as it quickly took advantage of the economic situation of the country and launched its first payment bank in Rajasthan.
Payment banks are a new concept for making banking accessible for people living in small towns and villages by integrating with already established distribution networks. They are expected to boost small scale businesses established in areas with low or null banking facilities.
With the country gradually moving towards a cashless and digitised currency model, it has become absolutely critical to have the perks of banking reach every corner of the country.
Already established mobile networks such as Airtel have their reach even in the farthest corners of the country. Tapping in that ubiquitous influence of Airtel across the country, setting up banks in collaboration with them is an excellent way of making sure that the benefits of banks and digitisation reach every towner and villager in the country.
This particular subsidiary of Airtel will allow the people of Rajasthan to open bank accounts at Airtel retail outlets and would be offering a range of banking services. Currently 10,000 Airtel outlets will be hosting this banking service, which plans to grow to 100,000 by the end of the year.
The option to open a bank account is not limited to Airtel customers only but it can be accessed by non-Airtel customers as well. You just need to carry your Aadhar card, as simple as that. The outlets will provide bank account opening services, cash deposit as well as withdrawal facilities.
In case that didn’t flatter you enough, other benefits of Airtel payment banks include their 7.25% per annum interest rate on deposits in savings accounts, deposit and withdrawal facility across almost all Airtel retail outlets and money transfer to any bank account in India.
Demonetisation has adversely affected the people of villages and small towns, where banking facilities are almost absent. With the setting up of payment banks in those regions, the situation could be expected to get slightly improved.
The aim is to include every transaction on a digital space, and payments bank are a convenient way to achieve that.
Started by PM Narendra Singh Modi, the campaign for Digital India promises the servicing of government facilities electronically, to every household of the nation. High speed internet, digital literacy and digitally provided services are the three main goals of Digital India. With the launch of payment banks in Rajasthan, a step in that direction has been proudly taken.
Yet the endeavour needs a lot of follow up. Stay tuned to get updates about setting up of payment banks in your city.
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