Journal Press India^®

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The RBI’s goal with payments banks is to increase financial inclusion and to enhance the use of financial services in the most distant places to bring every section of the economy into the mainstream financial system. The main goal of this work is to comprehend the concept and features of payments banks, investigate the factors behind payments bank adoption, and learn about the challenges for payments banks within our country. The secondary data used in the study was gathered from corporate websites, academic institutions, and governmental entities. The significant factor for payments banks adoption by customers are zero balance account, convenience, attractive interest rates, security and privacy. Payments banks come across lots of challenges, including reliance on low ticket account balances for profitability, lack of awareness, customers’ unwillingness to accept digital payments, restrictions on the use of funds, payments banks are prohibited from making loans.

Keywords

Payments bank; Financial inclusion; RBI; Objectives; Challenges

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