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Drawbacks – Another side of Payments bank
With all buzzing around payments, banks have certain drawbacks.
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Nothing new
Already certain banks are providing online platforms like e-wallets for transfer of funds and payments under a certain limit.Fresh allotment of license would rather bring undue competition in the market.
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Lack of universality (for platform)
Each company would have its own platform which at large may not synchronize with the platform of other payments bank.Thus the transfer of funds across different platforms (payments banks) is still a hurdle for the game changer.
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Lack of Infrastructure
Still, remote parts of the country lack decent internet connectivity.Consumer education is also an another setback.A Large chunk of the potential users for the payments have to be made tech savvy and embedded with the virtue of going with “Cashless ” or at least “minimum” cash.
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Security issues
As the Platforms for the payments bank completely rely on the virtual world.Potential threats of hacking, identity thefts, phishing and other threats can not be overlooked.We need mechanism and procedures both at the adminstrative and legal level to counter such challenges.Also, we need to legally bind the companies operating payments bank to ensure consumer safety online and vigil on these companies is also to be maintained.