This refers to the article "Payment banks: Spot the difference" by Madan Sabnavis (October 21). The writer has compared payment banks with India Post and the Jan Dhan scheme. While India Post's structure looks the same, it does not have any focus on customers and technology. Walk into any post office in urban or rural areas, and you can see customers facing inordinate delays in several services offered by the post office. Notwithstanding the lack of continuous power supply and internet linkage, payment banks can make good of the technology available. As for Jan Dhan, it is wrong to compare it with payment banks. Jan Dhan accounts may become dormant while accounts with payment banks are utilised only for limited period deposits .
The writer has also talked about an efficiency audit of India Post and public sector banks. On this count, payment banks will definitely score over other institutions due to its very nature of ownership and the quality of systems and processes. As for the cost of brick-mortar structures, payment banks need limited manpower. They will, therefore, be cost effective in the long run.
K V Rao Bangalore
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