Customer Awareness and Perception towards Payment Banks in India (A Study of Ludhiana City)

Abstract

Emergence of payment banks is the beginning of new era in banking. The use of digital payment depends upon medium for the payments. The era of online has established the country as a force to reckon with in the global payments space, in terms of not only advancement in technology but also the availability of a bouquet of safe, secure, innovative and efficient payment systems. Establishment of Payment Banks has been going one step forward in realization of the objective of financial inclusion as well as establishment of secure and trusted payment system of exchange of funds digitally. The main aim behind setting up of the payment bank in India is specially for easy and quick transaction through internet so that time coul d be saved. They have made easy reach to the unbanked regions and brought them into mainstream of financial systems. Payment Banks are a harmonious partnership between Banks and telecom companies. Because the rural and remote areas lack of infrastructure for institutional development of Banks and financing systems, Payment bank mainly operate through mobile phones, hence they are best suited for such a situation. These banks generally provide services to the disadvantaged groups who have small remittance s and can transact electronically, thus eliminating the role of middlemen, while at the same time facilitating organized finances. The present study is conducted on the awareness as well factors affecting the usage of payment banks of consumers (residing in Ludhiana). The result of present study shows that there is significant relation between age, education, occupation and income profile and awareness whereas insignificant in case of gender . Paytm and Post payment bank are first two preferred options i n case of payment banks.