2016 – A year that has engraved its name in the history of Indian Economy for note bandi, will be remembered for withdrawing ₹ 500 and ₹ 1000 currency notes. These currencies that constituted 86% of the total value were eliminated overnight on November 8, 2016 when PM Narendra Modi announced the digital and cashless India initiative.
As a result, cashless payments by the end of 2016 increased in tenfold. Indians, particularly from the urban lands, have been adopting various digital payment modes past demonetisation. While online banking and mobile banking have popularised, we also witness non-banking companies offering digital wallets like PayTM, Freecharge, and MobiKwik etc. hitting the opportunity.
Image Source – Trendhunter
With latest technologies available in the market, banks can themselves offer their customers a wide range of cashless banking solutions that are faster and safer. Check out these major reasons why banks need to have their own digital payment methods…
- No rural areas should be deprived of the cashless means
In an effort to become a cashless economy, the masses in rural India are often left back. Each day digital India movement is progressing, however, a maximum population still remains far from internet technology and smartphones. While PayTM and the like target urban population who is smartphone-friendly and internet-savvy, banks do bear a larger responsibility to reach-out to those in the not-so-developed areas.
Banks can help both the rural and urban people still go cashless when they don’t have access to internet and smartphones. Cashless banking solutions that work not only through scanning QR codes or online money transfer, but through SMS – this is how banks can empower their valued customers.
Here’s an inspiring video of how Thenhipalam Rural Co-operative Bank of Kerala helped customers and local vendors go cashless after demonetisation through COOPaisa – a one-of-a-kind app to buy, sell and exchange currency with or without smartphones and internet.
- No third parties involved
All digital wallets and payment banks today work on the concept where users load their wallets using their Bank Accounts (i.e. through internet banking, mobile banking and credit/debit cards). This means, the user blocks a certain amount in these wallets and uses this amount only at places where it is eligible. In case the amount is insufficient to carry forward the transaction, the user has to reload his/her wallet. On the other hand if transactions aren’t carried out through the wallet, the amount lies unused, which otherwise could have been availed elsewhere.
Banks, when having their own digital payment modes, can serve their customers better. They eliminate the need to load wallets in third-party applications, saves blocking of money and offers convenience along with security to customers.
Image Source – Outlook India
Many of the Indian Banks are already using Core Banking Solutions in an effort to simplify their processes, maximize efficiency and ultimately delight the customers. Yet, empowering customers with seamless banking solutions in today’s dynamic payments landscape is also crucial. The rising trend in the global payments industry is indicative that the banks must continually provide new innovations to match up with the changing mandates and regulations in banking sector.
E-village – a premium offering by Sesame India, is a comprehensive cashless banking solution that aids banks in extending digital and cashless services to their customers. To explore the complete solution suite and to schedule a FREE demo, get in touch with us today!