The
The RBI governor however said, "The (RBI) board took the view that it was hard to forecast what would happen in the payment space. Given the fact that we did not know what could succeed, the board chose to license a variety of players — some tech companies, finance companies, some bank-mobile combines. Now, let's see how the game develops."
On the one hand, where Bhattacharya’s queries reflected the potential threat from the nimbler financial companies, Rajan’s response show that many of them may not survive. The RBI governor quoted 1990s, the year when first round of
However, Sachin Salgaonkar, the analyst of
The Indian payments market, which weighs at around Rs 15.5 lakh crore in FY15 is likely to grow 12% annually. Shares of mobiles which are at less than 0.1% may rise to 10% in the coming seven years; with the value of mobile banking rising 200 times to $3.5 trillion, says Bank of America Merrill Lynch.
If reports are to be believed, branch-based transactions have gone down by 7% with Internet banking gaining popularity. The fact, however, might sound advantageous to the bank license winners.
The report also said that the internet expansion might make the digital banking soar and that digital banking customers may reach 230 million by 2020.