Via this move, the conglomerate aims to leverage its presence in 168 cities and rural locations through retail networks, such as Big Bazaar and Nilgiris, and offer additional services to customers. The move will also help it tap lower-income consumers who do not have bank accounts.
The Kishore Biyani-promoted group has appointed consultancy firm KPMG and roped in HSBCs global payments and cash management head Navin Gupta to set up the proposed business. Gupta, who serves on the board of the National Payments Corporation of India, will work with KPMG on products such as deposits, savings accounts and pre-paid cards, remittances and peer-to-peer banking through mobile technology platforms.
According to Reserve Bank of India (RBI) guidelines, issued in November 2014, the objective of payments banks is to widen financial inclusion by providing small savings accounts and payment and remittance services to users such as migrant workers, low-income households, small businesses and other unorganised sector entities. Such banks cant offer loans and credit facilities.
72% of consumers, both low-income and mid- to high-income, said they would consider opening an account with payment banks, with equal preference for retail and telecom sectors, according to a recent study issued by the market research company Nielsen. Over 320 million customers visited Future Group retail chains during 2014.
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