Integration of Payment Banks into Daily Life in Delhi NCR

Payment banks are a new type of financial institution designed to offer basic, easily accessible services. The Reserve Bank of India introduced them mainly to provide remittance services to groups like migrant workers, low-income families, small businesses, and other unorganized sectors. Raising awareness is crucial in shaping people's attitudes toward digital payment systems. Currently, payment banks face several challenges, especially because they are not allowed to lend money. Their main revenue comes from the interest on government securities in which they can invest. Despite these efforts, many payment banks are experiencing significant financial losses, raising questions about their sustainability. Notably, six out of the eleven existing payment banks are considering transitioning into small finance banks. This study examines the key factors that affect the sustainability of payment banks. It looks at how trust influences relationships, as well as the perceived usefulness and ease of use of these banks. Additionally, the study evaluates actual usage to gauge the practical benefits and user-friendliness of payment banks among respondents. Payment banks play a crucial role in driving India toward becoming a digital economy.