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The list of private sector companies that have applied to the RBI to set up payments banks captures how banking may change in the coming years
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The list of private sector companies that have applied to the Reserve Bank of India to set up payments banks captures how banking may change in the coming years. The list is dominated by companies that have access to mobile telecom networks and strong technological capabilities. The old branches may not disappear but banking will go digital and be mobile.
The central bank had come under fire when it gave out just two new permits for commercial banking last year. That stinginess or caution, take your pick, partly reflects a disagreement among policymakers over whether private companies should be allowed to enter mainstream banking. The debates are less relevant to specialist payments banks.
The number of new payments banks under corporate ownership that will be allowed to open for business in the coming months will be closely watched. It can be a useful guide to how quickly India is building a new financial architecture.
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