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Digital banking: Imparting comprehensive digital literacy is crucial in changing times

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K Srinivasa Rao

Digital footprints in financial intermediation are on an exponential rise. Digital banking channels are fast reaching out to rural areas with business correspondents (BCs), and retail grocery outlets are being equipped with Point of Sale (PoS) machines. Rural business community has understood the merits of accepting digital wallets. The PMJDY is being made an open-ended scheme, with focus shifting from covering ‘families’ to ‘individuals’—this will accelerate opening of new accounts and issuance of debit cards, adding to the scope of digital banking.

On the recommendations of Nachiket Mor Committee, differentiated banks are being rolled out. More significant is the setting up of payments banks. The India Post Payments Bank (IPPB) holds more potentiality due to its deeper reach in the hinterland, with 1,55,000 post office outlets. Payments banks can play a greater role in digital payments space as they are not allowed to lend. In addition, about 1,000 fintech companies are collaborating........

© The Financial Express