Payments banks need regulatory support for growth

The future is “uncertain” for payments banks and the model aimed at deepening financial inclusion requires regulatory support in order to be effective, a report said Monday.

The report from economists at SBI comes days after Aditya Birla Payments Bank, of the handpicked licensees, reportedly decided to shut down from October 2019. Vodafone m-Pesa had also shut shop earlier this month.

“The future is uncertain, but in time business will expand and evolve, with the help of regulatory and Government support,” they said in the note. Vodafone’s mobile phone-based banking service M-Pesa shut down its operations in the country with effect from July 15.