RESEARCH ON THE MARKET FOR DOMESTIC MONEY TRANSFERS IN INDIA, M-WALLETS, AND BILL PAYMENTS IN INDIA

It is anticipated that the volume of remittances transferred through business correspondents will significantly increase in the years to come. This is due to the fact that numerous public and private banks are racing to expand their outreach across the country through business correspondents, and an increasing number of people who do not have bank accounts are moving within the country in search of better employment opportunities. The requirement that India’s banks provide banking services to the country’s unbanked population, which was imposed by the Reserve Bank of India as part of its “financial inclusion mandate,” is the primary factor that has contributed significantly to the expansion of the business correspondent industry in India. Therefore, banks in India are increasingly concentrating their attention on broadening the geographic reach of their operations and providing consumers with a variety of product options via the use of business correspondents. The no frills accounts that bcnms provides are mostly used for peer-to-peer (P2P) payments, whilst the remittance services are employed by the populace that has left the country. It is anticipated that the rbis approval for interoperability will also help to consolidate the bcnm model in the near future. This is because it will assist them in widening their product portfolio by providing different products and services to their customers from various partner banks. Additionally, it will assist in diversifying the risk that they face. Among the many organizations that are filling the function of a business correspondent are sections 25s, non-governmental organizations (NGOs), microfinance institutions (MFIs), merchants, and village grocers, among others. However, business correspondents also encounter obstacles, such as a high number of inactive savings accounts and minimal commissions from financial institutions. Despite this, bcnms have become an important route for money transfers or remittances inside India during the last several years. From only 4.0 percent of total remittances via banks in India in fiscal year 2008 to around 30.0 percent in fiscal year 2013, the contribution of bcnms expanded significantly. “the mandate released by the rbi in january 2006 for engaging the business correspondents (bcs) by the banks to achieve greater financial inclusion in the country and to provide limited banking services at low cost to the unbanked population has majorly driven the growth of the bcnm market in india,” states the research report titled “india domestic remittance, m-wallet and bill payment market future outlook to 2018 – driven by government support and rising banked population” The regulatory backing for the industry has been progressively increasing, and it is anticipated that this trend will continue over the next several years. In the next years, it is anticipated that the different governmental institutions in India, such as the national payment corporation of India (npci) and the unique identification authority of India (uiadi), would play a key role in enabling this industry. This study gives a complete analysis of the domestic remittances market in India. It also assists the reader in identifying the present trends in the major sectors of the industry as well as the predicted development in the future dependent upon the changing industry dynamics in the coming years. The report will assist industry consultants, business correspondents, banks, microfinance institutions, non-governmental organizations, and other stakeholders in aligning their market-centric strategies according to trends that are currently occurring and those that are anticipated to occur in the future. More information can be found at the following website: http://www.kenresearch.com/banking-financial-service-insurance/financial-services/india-domestic-remittance-market-research-report/474-93.html Ankur Gupta may be reached at the following email address: ankur@kenresearch.com.

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