Payments Banks' Trial By Fire?

Contrary to market perception, payments banks such as fino and airtel have turned profitable.

- Aprajita Sharma

During the Covid-19 pandemic when the entire world was grappling to cope with the deadly virus, people in villages near Kekri in Rajasthan didn't have to worry about one thing - doorstep banking services. Thanks to 30-year-old Hanumanji at Kekri in Ajmer, a large number of people living in several rural areas of the district could avail the benefits of government schemes hassle-free. I would cover at least 25 km daily to ensure that villagers get their pension and other government benefits. I still visit rural hamlets to make sure that banking services reach villagers, says Hanumanji, a merchant with Fino Payments Bank.

Like Hanumanji, several of his ilk had taken banking services to far-off places across the country during the pandemic. And they did their bit quietly, away from the limelight.

Not only those in villages, daily-wagers, construction workers, and vendors in metro cities benefitted as well. Though banks are accessible in metros, no one wanted to stand in long queues to get essential services. Sometimes even after waiting for three-four hours, they (bank officials) would tell you to come back later, says a vendor working in and around Kapashera in Delhi.

TURNING THE CORNER

Unlike many other sectors, payments banks have grown during the pandemic. Fino Payments Bank, for example, the only listed player among its peers, turned profitable in 2020-21 after the first wave of Covid-19 when nationwide lockdown kicked in.