DISSERTATION REPORT

" Changing Indian Payments Landscape with specific reference to Mobile Wallets
and Payment Banks "

By

Divya Khunger
A3110114024

BFIA 3rd Year

2014-2017

Under the supervision of

Mr. Atul Kumar

ACCF

In Partial Fulfilment of the requirements for the Degree of

Bachelors of Financial & Investment Analysis
BFIA

AT
AMITY COLLEGE OF COMMERCE AND FINANCE
AMITY UNIVERSITY
SECTOR 125, NOIDA-201303, UTTAR PRADESH, INDIA

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 DECLARATION

The work proposed in the Dissertation project on topic " Changing Indian Payments Landscape
with specific reference to Mobile Wallets and Payment Banks " being submitted by Ms. Divya
Khunger Enrollment number A3110114024 to Amity college of commerce and finance, Amity
University, Noida, UP in partial Fulfilment of the requirements for the Degree of Bachelors of
Financial & Investment Analysis under the guidance of Mr. Atul Kumar, Faculty, Amity
university has not been submitted to any other University or Institute in India or abroad or
elsewhere for award of any degree or diploma and conforms to the guidelines for presentation
and style set out in the relevant documentation

I undertake to abide by the rules and regulation pertaining to the Bachelors degree
programme of the Amity University, Noida as applicable from time to time.

Divya Khunger

(A3110114024)

BFIA- 6th semester

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 FACULTY GUIDE APPROVAL

This is to certify that Ms. Divya Khunger pursuing Bachelor of Financial and Investment
Analysis from Amity College of Commerce and Finance, Amity University, Uttar Pradesh
enrollment no - A3110114024 has successfully completed his project report on- " Changing
Indian Payments Landscape with specific reference to Mobile Wallets and Payment Banks "
under my guidance with great enthusiasm.

Mr. Atul Kumar

(Faculty Guide)

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 ACKNOWLEDGEMENT

I would like to express my sincere thanks to Mr. Atul Kumar, my guide, for guiding me in this
Dissertation and also for his belief in me. His constant support, help and guidance throughout my
Dissertation enabled me to derive learning values.

My Sincere thanks to Dr. Ashok Chauhan (Founder President), Dr. Balvindra Shukla (Vice
Chancellor) and Ms Sujata Khandai (Head of the Department, ACCF) for their support and
valuable suggestions during the Dissertation.
Last, but not the least, the contribution of my parents in providing me an immense support and
encouragement that cannot be ignored.
I am honored by the learning that I have gained during the completion of my Dissertation.

Divya Khunger

(A3110114024)

BFIA- 6th semester

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 TABLE OF CONTENT

S.No. Topic Page No.

Declaration by Student 2
Faculty Guide's Approval 3
Acknowledgment 4

Abstract 7

1. Chapter 1: Introduction 8-21

1.1 Evolution of Payment Systems and Current Scenario 9-10
1.2 Changing Modes of Banking 11-12
1.3 Digital Payment Methods 12-15
1.4 Mobile Wallets 16-18
1.5 Payment Banks 19-21

2. Chapter 2: Review of Literature 22-23

3 Chapter 3: Research Methodology 24

3.1 Objectives of Study 24
3.2 Data Collection Method 24

4 Chapter 4: Data Analysis and Interpretation 25-36

4.1 Data Analysis Results 25-36
4.2 Interpretation 25-36

5. Conclusion and Limitations 37-38

5.1 Conclusion 37
5.2 Limitations of the Study 38

6. References 39

7. Annexure 40-52
7.1 Questionnaire 40-41
7.2 Questionnaire Responses 42-43
7.3 Weekly Progress Report 44-51
7.4 Plagiarism Report 52

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 ABSTRACT:

Due to technological advancement, the things have changed drastically around us. Technology
has made things comfortable and convenient for the people. With the help of our Smartphone or
computer that is connected to the Internet, we can do anything, such as ordering food or
groceries, a taxi or movie ticket booking and so on to do. Mobile wallet, online banking, mobile
banking and many other digital payment systems have become popular in recently.

In this paper an attempt has been made to study the changing payment systems from
traditional to electronic. The paper discusses different electronic payment methods. It studies the
concept of mobile wallets and the growth of mobile wallets in recent years. The paper also
focuses on the concept of Payment Banks.

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 CHAPTER 1:

INTRODUCTION

Payment and Settlement Systems constitute a major aspect of a countrys financial and economic
structure. A payment system is a system which enables payment between two entities i.e. a payer
and payee and constitutes clearing, settlement or payment service. It was argued that there is a
need to modernize the payment system and move away from paper-based to electronic mode of
payment system to improve efficiency and save cost. An efficient payment system acts as an
enabler for speeding up liquidity flow in the economy, apart from ensuring proper utilization of
limited resources it also eliminates systemic risks. Like in any ambitious economy, in India too,
the fast advances in information technology, changes in regulatory framework, setting up of new
institutions have aided to the rise of new payment practices, products and delivery channels for
small as well as large value, and urgent payments. Numerous major changes in the payment

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system are taking place at a quicker pace as e-commerce becomes more prevalent in the
economic activities in the country.

EVOLUTION OF PAYMENT SYSTEMS AND CURRENT SCENARIO:

When people or businesses enter into economic transactions, i.e. buy and sell goods and services,
the value thereof needs to be settled. Before the concept of money came in, the settlement was
through exchange of goods and / or services and it was called the barter system. With the concept
of money, the sale and purchase of goods and services are being effected or settled by payment
of money.

The money was in early days the precious metals like gold and silver. Later, the governments
issued coins made of these precious metals as money; still later, the paper money, the currency,
became the norm as the money. Thus people settled their economic transactions by paying in
currency notes and coins.

As the banking system evolved, it became easier, safe and even remunerative to keep ones
money in a bank account and it became still more easier and safe to use transfer of money in

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bank accounts for making payments for the economic transactions. This was more so for large
value transactions. Actually, it is now used equally for effecting low value transactions also.

For effecting this transfer of money in bank accounts, a payment instrument was needed to
instruct the bank to effect that transfer. This instrument was the cheque for a very long period.
Thus a system consisting of the cheque as the payment instruments and an infrastructure around
the cheques consisting of the drawee bank, the drawer bank and the cheque clearing houses came
on the scene and were known as the payment systems.

With the developments in the information and communication technology, world over, different
kinds of payment instruments and innovations in the instruments and the payment systems
evolved.

Today, there are various types of payment instruments exist to meet the requirements of different
users in different circumstances-

Cheques,

Debit cards

Credit cards, etc.

There are various systems to meet the remittance requirements of users depending upon their
time criticality and cost sensitivity -

National Electronic Funds Transfer (NEFT),

Aadhaar Enabled Payment System (AEPS)

Immediate Payment Service (IMPS),

Electronic Clearing Service (ECS),

Unified Payments Interface,

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 Aadhaar Payment Bridge System (APBS).

CHANGING MODE OF BANKING :

The Indian banking industry has gone through a series of transformations which started with
branch banking to core banking technologies to internet banking, mobile banking etc. Now,
the digital revolution is upon us in its full form. Technology, digitalization, social media and
mobility are changing our personal lives in a big way and also the banking the way we used to
do. The banks have also been responding to this change with the introduction of e
banking, enhanced ATM capabilities, mobile banking and social banking. It has a strong impact

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on the physical branches in removing a large share of transactional processes from the
branches and also discouraging customers from visiting branch. The Indian banking industry
is expected to invest significant amount in technology innovation to drive next generation of
banking. Engaging the customer through the most relevant channels will be a key to maximizing
customer value and creating revenue streams for banks.

Branch Banking:
Despite the latest developments, branch banking has still a lot of importance in India as
it makes banking possible for people living in rural and remote areas. In addition, RBI is keen to
improve the banking situation in rural areas and has mandated banks to allocate at least 25%
of new branches in unbanked rural centers. As a result, the number of bank branches in rural
and semiurban areas has been growing at a faster pace.
However, with consumers increasingly using mobile phones and the internet for banking
services, major banks are reducing the size of new branches.

Online Banking:
Though cheque used to be the dominant mode of payment, the value of chequebased
transactions has been on a gradual decline. As a result of RBIs proactive approach to create and
push electronic payment systems. After the introduction of the Payments and
Settlement Systems Act in 2007, the focus on digital proposition led to market and regulatory
developments that have actively sought to change consumer behavior with respect to
payments.

Mobile Banking:
Most banks are investing heavily in mobile technology and mobile is already the largest
banking channel for some of the new private sector banks by volume of transactions and its gro
wing rapidly. According to market research firm, (eMarketer) India will have the largest mobile
phone user base. With such a large base of mobile phone users, the use of a mobile as a
platform for electronic payments can create a meaningful dent in a tremendously cash
intensive economy. However, lack of awareness as well as standardization of procedures

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has led to a situation of slow pickup of mobile
banking services despite the high mobile density in the country.

DIGITAL PAYMENT METHODS:

The Digital India programme is a flagship programme of the Government of India with a vision
to transform India into a digitally empowered society and knowledge economy. Faceless,
Paperless, Cashless is one of professed role of Digital India.

As part of promoting cashless transactions and converting India into less-cash society, various
modes of digital payments are available.

Banking cards :

Banking cards offer consumers more security, convenience, and control than any other payment
method. The wide variety of cards available including credit, debit and prepaid offers
enormous flexibility, as well. These cards provide 2 factor authentication for secure payments e.g
secure PIN and OTP. RuPay, Visa, MasterCard are some of the example of card payment
systems. Payment cards give people the power to purchase items in stores, on the Internet,
through mail-order catalogues and over the telephone. They save both customers and merchants
time and money, and thus enable them for ease of transaction.

Unstructured Supplementary Service Data (USSD):

The innovative payment service *99# works on Unstructured Supplementary Service Data
(USSD) channel. This service allows mobile banking transactions using basic feature mobile
phone, there is no need to have mobile internet data facility for using USSD based mobile

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banking. It is envisioned to provide financial deepening and inclusion of under banked society in
the mainstream banking services.

*99# service has been launched to take the banking services to every common man across the
country. Banking customers can avail this service by dialing *99#, a Common number across all
Telecom Service Providers (TSPs) on their mobile phone and transact through an interactive
menu displayed on the mobile screen. Key services offered under *99# service include, interbank
account to account fund transfer, balance enquiry, mini statement besides host of other services.
*99# service is currently offered by 51 leading banks & all GSM service providers and can be
accessed in 12 different languages including Hindi & English as on 30.11.2016.

Aadhaar Enabled Payment System:

AEPS is a bank led model which allows online interoperable financial inclusion transaction at
PoS (MicroATM) through the Business correspondent of any bank using the Aadhaar
authentication.

The four Aadhaar enabled basic types of banking transactions are as follows:-

Balance Enquiry
Cash Withdrawal
Cash Deposit
Aadhaar to Aadhaar Funds Transfer

The only inputs required for a customer to do a transaction under this scenario are:-

IIN (Identifying the Bank to which the customer is associated)

Aadhaar Number

Fingerprint captured during their enrollment

Internet Banking:

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Internet banking, also known as online banking, e-banking or virtual banking, is an electronic
payment system that enables customers of a bank or other financial institution to conduct a range
of financial transactions through the financial institution's website.

Different types of online financial transactions are:

National Electronic Fund Transfer (NEFT)
National Electronic Funds Transfer (NEFT) is a nation-wide payment system facilitating one-to-
one funds transfer. Under this Scheme, individuals, firms and corporates can electronically
transfer funds from any bank branch to any individual, firm or corporate having an account with
any other bank branch in the country participating in the Scheme. Individuals, firms or corporate
maintaining accounts with a bank branch can transfer funds using NEFT. Even such individuals
who do not have a bank account (walk-in customers) can also deposit cash at the NEFT-enabled
branches with instructions to transfer funds using NEFT. However, such cash remittances will be
restricted to a maximum of Rs.50,000/- per transaction. NEFT, thus, facilitates originators or
remitters to initiate funds transfer transactions even without having a bank account. Presently,
NEFT operates in hourly batches - there are twelve settlements from 8 am to 7 pm on week days
(Monday through Friday) and six settlements from 8 am to 1 pm on Saturdays.

Real Time Gross Settlement (RTGS)

RTGS is defined as the continuous (real-time) settlement of funds transfers individually on an

order by order basis (without netting). 'Real Time' means the processing of instructions at the
time they are received rather than at some later time; 'Gross Settlement' means the settlement of
funds transfer instructions occurs individually (on an instruction by instruction basis).
Considering that the funds settlement takes place in the books of the Reserve Bank of India, the
payments are final and irrevocable. The RTGS system is primarily meant for large value
transactions. The minimum amount to be remitted through RTGS is 2 lakh. There is no upper
ceiling for RTGS transactions. The RTGS service for customer's transactions is available to
banks from 9.00 hours to 16.30 hours on week days and from 9.00 hours to 14:00 hours on
Saturdays for settlement at the RBI end. However, the timings that the banks follow may vary
depending on the customer timings of the bank branches.

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 Electronic Clearing System (ECS)

ECS is an alternative method for effecting payment transactions in respect of the utility-bill-
payments such as telephone bills, electricity bills, insurance premia, card payments and loan
repayments, etc., which would obviate the need for issuing and handling paper instruments and
thereby facilitate improved customer service by banks / companies / corporations / government
departments, etc., collecting / receiving the payments.

Immediate Payment Service (IMPS)

IMPS offers an instant, 24X7, interbank electronic fund transfer service through mobile phones.
IMPS is an emphatic tool to transfer money instantly within banks across India through mobile,
internet and ATM which is not only safe but also economical both in financial and non-financial
perspectives. The main objectives of IMPS are to make payment systems easier, convenient, and
digitalization of payment systems.

Mobile Banking:

Mobile banking is a service provided by a bank or other financial institution that allows its
customers to conduct different types of financial transactions remotely using a mobile device
such as a mobile phone or tablet. It uses software, usually called an app, provided by the banks
or financial institution for the purpose. Each Bank provides its own mobile banking App for
Android, Windows and iOS mobile platform(s).

Micro ATMs:

Micro ATM is a device used by Business Correspondents (BC) to deliver the basic banking
services. The platform enables Business Correspondents such as local kirana shop owners to
provide instant transactions. These micro ATMs enable transactions at low costs and are
connected to all banks country wide. It enables the customer to instantly deposit and withdraw
funds. The customers need to get their identity verified to make such transactions. The money
comes from the cash drawer of the Business Correspondent. The basic facilities provided by
micro ATMs, are accepting Deposits, Withdrawal or Fund transfer and Balance enquiry.
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MOBILE WALLETS:

Mobile wallet is the digital equivalent to the physical wallet in which we carry money. It is an
online platform which allows a user to keep money in it, just like a bank account. A user needs to
make an account with a mobile service provider. After which money is added to the mobile
wallet account using a debit, credit, online transactions from account or via cash (a rechargeable
kiosk). The main difference between a mobile wallet and online transactions via bank account is
that, unlike banks mobile wallet does not charge any amount of money on every transactions and
saves the customer from the hassle of entering card details and pin number for each and every
transaction. Mobile wallet is often confused with mobile banking, but is a much broader concept
that includes using the mobile phone as a mode of payment. It is the digital equivalent to the
physical wallet we already have in our pockets/bags today. Our mobile phones are with us at all
times, and as we use them for payments to retailers, travelling on public transport and a myriad
other things, the need for physical cash diminishes.

TYPES OF MOBILE WALLETS:

There are mainly 4 types of mobile wallets

Closed wallets : In these wallets cash can neither be added nor withdrawn

For example: prepaid and gift vouchers)

Semi closed wallets: In these type of mobile wallets cash can be added but not
withdrawn

For example: MobiKwik Wallet

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 Semi-open wallets: These mobile wallets are linked to a bank accounts, but they do
not allow cash withdrawal

For example: m-pesa

Open wallets: In these type of wallets cash can be added as well as withdrawn

For example: Paytm

Various Mobile Wallets in India are:

Paytm,

Freecharge,

Oxigen,

Mobikwik,

Airtel Money,

mRuppee,

Jio Money,

Citrus Pay,

SBI Buddy,

Vodafone M-Pesa,

ICICI Pockets,

Axis Bank Lime,

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 SpeedPay

BENEFITS OF MOBILE WALLETS:

Convenient mode of transaction

Speedy transactions

Flexible payment system

Secure mode of transactions

In case the user doesn't have credit or debit card he or she can visit the nearest shop or
store where wallet recharge is possible and can get it loaded.

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 Easy way of managing cash

With the help of mobile wallets users can make quick and easy payments for mobile
recharge and also for online shopping bills

SWOT ANALYSIS OF MOBILE WALLETS:

STRENGTHS

No transaction costs

Entering PIN is not required every time as in case of debit or credit cards

Quick one touch payments

WEAKNESSES

Unavailability or poor network / internet acts as a barrier

Lack of knowledge about how to use mobile wallets among people
Concerns about security of money in mobile wallets

OPPORTUNITIES

Great scope for market extension in rural areas and contribution towards financial
inclusion

THREATS

Cash dominated economy

Literacy constraints
Technology inexperience
Lack of awareness among people

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PAYMENT BANKS:

Payments banks are set up by the Reserve Bank of India. These banks will provide facilities such
as accepting current deposits and savings bank deposits and payments. But there exists an upper
limit of 1 Lakh Rupees per customer. The customers will also earn interest on the deposits in
their savings accounts. This will also promote financial inclusion. They can distribute financial
products such as Mutual Funds, Pension & Insurance policies. But these banks cannot lend
money to its customers or provide credit card facilities. Payments Bank will be registered under
Companies Act, 2013 as a public limited company.

August 19, 2015, the Reserve Bank of India in allowed 11 entities to set up Payment bank these
are:

Airtel M Commerce Services,

Aditya Birla Nuvo,

Vijay Shekhar Sharma, Paytm founder,

Department of Posts, v. Fino Pay Tech,

National Securities Depository,

Cholamandalam Distribution Services,

Reliance Industries,

Tech Mahindra,

Dilip Shantilal Shanghvi, the Sun Pharma promoter,

Vodafone M- Pesa.

Features:

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 Deposits only upto Rs. 1,00,000 can be accepted

They are not allowed to grant loans

These banks can deposit their money only in government bonds.

They are allowed to issue debit cards but not credit cards.

They are largely dependent on ATMs for banking services

Opening an account with payment banks is expected to be similar to acquiring a pre-paid

mobile number.

SWOT ANALYSIS OF PAYMENT BANKS:

STRENGTHS
Can issue debit cards
Pay interest on deposits
24*7 banking services
Low servicing cost

WEAKNESSES
Poor internet and network connections
Lack of awareness among users
Low margin business
Product offerings are limited
Transaction safety concerns
Inability to provide credit facility

OPPORTUNITIES

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 Great scope for market expansion in rural areas
Scope for offering new and unique services

THREATS
Lower profits due to intense level of competition
Cash dominated economy
Technology inexperience
Literacy constraints
Lack of awareness
High levels of regulatory restrictions

SWOT ANALYSIS OF DIGITAL PAYMENT SYSTEMS:

STRENGTHS
Provide user friendly technology
Everywhere banking
24*7 Banking facilities
Immediate information
No paper handling and physical handling and storage of paper instruments
Low transaction costs
Respond faster to customer inquiries and complaints
Improved management and accountability
Greater Transparency
Easy access to banks in Rural Areas

WEAKNESS

The complexity of online transactions

Poor people do not have access to the internet
Poorer sections do not have access to banking services
Security concerns
Unavailability of internet

OPPORTUNITIES:

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 Great scope for market expansion.
Large rural untapped markets

THREATS:

Concerns regarding safety of transactions

Large number of employees who are incapable of handling e-banking business

CHAPTER 2:

REVIEW OF LITERATURE

M. Manikandan(2015) " The paper summarizes that mobile wallets are the futures of cash. This
also means the physical wallet is one step closer to becoming redundant. Technology will change
everything and it pays the way for future services especially in financial areas. Being a new
product, customer education is important so it is the duty of all the mobile wallet companies to
educate them. By doing this, sooner it will be a great success in global market."

Dr. J.C. Pande (2015) "reviewed the introduction of Payment Banks in India and concluded that
it is a major positive disruption to the banking sector and would certainly see the cost associated
with transfer of money or settlements reduce dramatically for end users. Payment banks have
been restricted in banking operations, as they will not be allowed to carry out normal lending
activities. It does raise questions about who will serve credit needs of the unbanked. RBI
suggests that Payment Banks will serve as a bridge to allow people to eventually migrate to full-
service banks, which is quite likely. When seen in the background of limited access to the formal
banking system, however, the need to introduce newer forms of banks is the way to go, in the
correct perspective. Payments banks will face competition from the existing lenders. Besides,

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profitability will also remain a challenge as they will be working on narrow margins. To this end,
due to ever-growing customers expectations for faster-easier-simpler banking facilities what
will drive the bankers is to work with creativity and passion, which contributes to growth of
cross sections of our society, and so the challenges."

Nidhi Chandarana(2015) "states that the decision to license some of the countrys biggest
corporate and mobile telecom firms to start payment banks promises to be a similar game-
changer in India."

Bamoriya "in their research focused on the barriers in adaptation of mobile payment in India.
Factors such as network problems, insufficient operating guidance and safety were few of the
main barriers. They also found many consumers primarily use m-banking for information
reading such as checking the account balance; this however is not the real aim of mobile
payments services (Singh & Bamoriya, 2012)."

Basudeo "made a comparative study on various types and methods mobile payment system. The
paper further discusses about the challenges that are to be overcome for wide acceptance of
SMS based payment transaction (Basudeo & Jasmine, 2012)"

Kumar (2006) "another path-breaking innovation in the banking sector in recent times isthe
emergence of internet banking customer can access his account anywhere even from the comfort
of his computer in the house with the added benefit of funds transfer facility. Internet banking is
estimated to be even more cost effective for banks as compares to ATMs. Internet banking also
provides the customers with value added services like payment of insurance premiums, payment
of utility bills, booking of railway tickets etc."

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Saba Abid (2016) "In this paper an attempt has been made to study electronic payment system
that has changed the traditional payment system in India. It has been concluded that electronic
payments are increasing and transactions processed by the paper-based clearing systems have
shown a continuous decline both in volume and value terms."

CHAPTER 3:

RESEARCH METHODOLOGY

RESEARCH DESIGN:

The report is based on Descriptive Research methodology:

OBJECTIVES:
The main objective of this project are:
Evaluate and compare different payment systems
Evaluate the changing trends in payment (payment system digitization)
To find out the most preferred payment systems
Understand the concept and various aspects of mobile wallets and payment banks

DATA COLLECTION SOURCES:

Primary data: The data has been collected with the help of structured questionnaire by
framing relevant questions to the project study and research.
Type of questionnaire: Structured questionnaire.

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 Sampling:

Sample Area: Delhi (NCR)

Sample size: 60
Sampling Technique: Convenience Sampling
Sample Design: The samples selected in the survey were of working people, housewives and
college students.

Secondary data: Articles of various journals, newspapers and websites have been used
to collect data.
CHAPTER 4:
DATA ANALYSIS AND INTERPRETATION

Options No. of Response Percentage

Cash 29 48.3%
Digital payments 31 51.7%

INTERPRETATION:

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"The above data shows that from the total respondents almost 51% people prefer making Digital
Payments and 49% (approx) prefer making cash payments. Hence it can be seen there is almost
equal preference among the people for both modes of payment."

Options No. of Response Percentage

Yes 51 85%
No 1 1.7%
Maybe 8 13.3%

INTERPRETATION:

"From th above pie chart and table it can be seen that 85% people believe that digital payments
are secure, 13.3% people believe that digital payments maybe secure or not and only 1.7%
people think digital payments are not secure."

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 Options No. of Response Percentage
Mobile Wallets 21 35%
Credit/Debit 30 50%
Card
NEFT/RTGS 5 8.3%
Mobile Banking 4 6.7%

INTERPRETATION:
"From the above data it can be seen that maximum respondents prefer making digital payments
by debit or credit cards that is 50% of them. 35% of the respondents that is 21 of them prefer
making payments via mobile wallets. Hence it can be seen that most of the respondents prefer
making payments via credit/ debit cards and mobile wallets."

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 Options No. of Response Percentage
Yes 31 51.7%
No 18 30%
Maybe 11 18.3%

INTERPRETATION:

"It can be seen from the chart above that 51.7% people agree that post demonetization their
prefered mode of making payments has changed. As compared to 30% of respondents who say
that their mode of making payment hasn't changed. Mode of making payments for maximum
respondents has changed from cash to digital post demonitization."

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 Options No. of Response Percentage
Very Often
Often 7 11.7%
Sometimes 18 30%
Rarely 29 48.3%
Never 6 10%

INTERPRETATION:

"From the above table we can see that 48.3% of the respondents rarely visit bank and only
11.7% of them often visit banks. We can see that very less people visit bank branches nowadays
which is possibly a result of shift to digital banking modes from the traditional banking."

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 Options No. of Response Percentage
Very Often 9 15%
Often 8 13.3%
Sometimes 19 31.7%
Rarely 15 25%
Never 9 15%

INTERPRETATION:

"From the above collected responses from the respondents it can be seen that 31.7% of the
respondents sometimes use Net Banking. And 15% of them use Net Banking very often. Which
can be seen as a shift to Net Banking."

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 Options No. of Response Percentage
Very Often 24 40%
Often 13 21.7%
Sometimes 12 20%
Rarely 8 13.3%
Never 3 5%

INTERPRETATION:

" It can be seen from the above reponses that 40% of the respondents that is 24 of the total
respondents use mobile wallets very often. As compared to 3% of the respondents who never use
mobile wallets. Which shows that the popularity and use of mobile wallets is increasing. This
can also be a result of demonitization that the use of mobile wallets is increasing."

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 Options No. of Response Percentage
Very Often 15 25%
Often 30 50%
Sometimes 13 21.7%
Rarely 2 3.3%
Never

INTERPRETATION:

"The above responses show that most of the respondents often use credit/ debit cards and there
are very less respondnts who do not or rarely use debit/ credit cards. Which is another sign of
changing payment modes to digital payment systems."

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 Options No. of Response Percentage
Yes 35 58.3%
No 7 11.7%
Maybe 18 30%

INTERPRETATION:

"For the above question there are mixed responses 58% of the people think payment banks are a
good substitute for traditional banks which is quite a positive response. Whereas 30% of the
respondents aren't sure about whether it's a good substitute for traditional banks."

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 Options No. of Response Percentage
Yes 29 48.3%
No 7 11.7%
Maybe 24 40%

INTERPRETATION:

"Most of the respondents believe that payment banks should provide credit facility. And only a
veryless number of respondents that is 11% believe they shouldn't provide credit. And some of
the respondents aren't very sure about it."

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 Options No. of Response Percentage
Yes 48 80%
No 4 6.7%
Maybe 8 13.3%

INTERPRETATION:

"The above data shows that maximum number of respondents find mobile wallets a convenient
mode of payment. Only 6.7% of the respondents say that they do not find mobile wallets
convenient.And 13.3% aren't sure about do they exactly find mobile wallets convenient."

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 Options No. of Response Percentage
Yes 43 71.7%
No 5 8.3%
Maybe 12 20%

INTERPRETATION:

"According to the data in above table most of the respondents think digitalization of payment
systems is good. 71.7% of them think digitalization is good on the other hand only 8.3% of them
think digitalization isn't good. And 20% of the respondents aren't sure whether it's good or bad."

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 CONCLUSION

The rapidly changing environment in India has led to the vast growth of digital payments. Every
day the rising internet access provides scope for more and more online payment systems. Slowly
but steadily more and more Indian banks are making efforts for the adoption of advanced
technology in the banking sector. Numerous banks are now making efforts to popularize the e-
banking payment systems. The younger generation is finds it very convenient, but it is not only
limited to the younger generation, the older generation also finds it very useful and have slowly
adapted to the digital payment systems as it is convenient for all. Also demonetization has had a
rather positive effect on the growth of the digital payment systems. Because of the low cash on
hand availability, digital payment has become a preferred method of payment for many. It also
increased to the use of mobile wallets in India. The government and the Reserve Bank of India
are also pushing many other payment systems to allow people to have many options for making
digital payments. RBI's new concept of Payment banks will also help in increasing digitalization
of payments and it will also contribute towards financial inclusion. Although the number of users
of digital payment has increased drastically, it will still take a long time before the entire country
adapts to and makes use of the digital payment system.

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 LIMITATIONS OF THE STUDY:

While conducting the study many constraints were faced. Some of the major limitations are
listed below which must be considered so that the report and the findings can be understood in
appropriate way:

Limited Availability of funds

Limited time period to conduct the study
Limited ability to gain responses from the exact type of participants wanted in geographic
type as well as financial status.
Unwillingness to respond among respondents.

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 REFERENCES:

Dr. J.C. Pande, (2015) "Payment Banks A Newer Form of Banks to Foster Financial
Inclusion in India", Global Journal For Research Analysis Volume-4, Issue-11, Nov-2015
ISSN No 2277 - 8160

Mamta, Prof. Hariom Tyagi, Dr. Abhishek Shukla, (2016) "The Study of Electronic
Payment Systems"

"The Evolution of Digital and Mobile Wallets" (2016)

M. Manikandan, Dr. S. Chandramohan (2015) " Mobile Wallet- A Virtual Physical Wallet
to the Customers"

Nidhi Chandarana " Payment Bank A Need Of Digital India" Abhinav National
Monthly Refereed Journal of Research in Commerce & Management, Volume 4, Issue 11
(November, 2015)

Deepankar Roy, Amarendra Sahoo " Payment Systems in India: Opportunities and
Challenges" Journal of Internet Banking and Commerce, April 2016, vol. 21, no. 2

ANNEXURE

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Survey Questionnaire:

1. How do you prefer to make payments?

Cash
Digital Payment

2. Which mode of digital payment do you prefer for buying groceries?

Mobile wallets
Debit/ Credit Card

3. Do you think digital payments are secure?

Yes
No

4. How often do you visit bank branch?

Regularly
Occasionally
Rarely

5. How often do you use Net Banking?

Regularly
Occasionally
Rarely

6. For making payments of high denominations what do you prefer?

Cheque and Draft
NEFT & RTGS

7. Has demonetization changed the mode of payment you preferred from cash to digital
payments?
Yes
No

8. Do you think payment banks are a good substitute for small savings over traditional
banks?
Yes
No

9. What do you think is more convenient and safe?

Debit/ Credit Card
Mobile Wallets

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44 | P a g e
 AMITY COLLEGE OF COMMERCE AND FINANCE
DISSERTATION: WEEKLY PROGRESS REPORT

For the Week Commencing: 09 Jan 2017 13 Jan 2017

WPR: 1

Name: Divya Khunger

Programme: BFIA VI Enrolment No: A3110114024

Name of the Guide: Mr. Atul Kumar

Dissertation Topic: "Changing Indian Payments Landscape with specific reference to Mobile
Wallets and Payment Banks"

Targets for the week:

1. Topic selection and Amizone registration to be done in this week.

2. Downloading the reference material.

Achievements for the week:

1. Topic was decided successfully and uploaded on Amizone in consultation of the faculty
coordinator.
2. Many Research papers and articles were downloaded.

DIVYA KHUNGER

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 AMITY COLLEGE OF COMMERCE AND FINANCE

DISSERTATION: WEEKLY PROGRESS REPORT

For the Week Commencing: 16 Jan 2017 20 Jan 2017

WPR: 2

Name: Divya Khunger

Programme: BFIA VI Enrolment No: A3110114024

Name of the Guide: Mr. Atul Kumar

Dissertation Topic: "Changing Indian Payments Landscape with specific reference to Mobile
Wallets and Payment Banks"

Targets for the week:

1. Studying changing modes of payments.

2. Understanding the concept of Payment Banks and Mobile Wallets.
3. Studying the emergence of Payment Banks and Mobile Wallets.

Achievements for the week:

1. Collection of information about changing modes of payments.

2. The information provided by the available journals , newspapers and books about
payment banks and mobile wallets has been acquired .

DIVYA KHUNGER

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 AMITY COLLEGE OF COMMERCE AND FINANCE
DISSERTATION: WEEKLY PROGRESS REPORT

For the Week Commencing: 23 Jan 2017 27 Jan 2017

WPR: 3

Name: Divya Khunger

Programme: BFIA VI Enrolment No: A3110114024

Name of the Guide: Mr. Atul Kumar

Dissertation Topic: "Changing Indian Payments Landscape with specific reference to Mobile
Wallets and Payment Banks"

Targets for the week:

1. Doing SWOT analysis of payment banks and mobile wallets.

2. Collecting information about various mobile wallets.
3. Studying about the proposed payment banks.

Achievements for the week:

1. SWOT analysis of payment banks and mobile wallets was done on the basis of the
information.
2. Also collected and read articles about various mobile wallets and proposed payment
banks.

DIVYA KHUNGER

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 AMITY COLLEGE OF COMMERCE AND FINANCE
DISSERTATION: WEEKLY PROGRESS REPORT

For the Week Commencing: 30 Jan 2017 03 Feb 2017

WPR: 4

Name: Divya Khunger

Programme: BFIA VI Enrolment No: A3110114024

Name of the Guide: Mr. Atul Kumar

Dissertation Topic: "Changing Indian Payments Landscape with specific reference to Mobile
Wallets and Payment Banks"

Targets for the week:

1. Collecting information from various articles and journals for preparing the
introduction of the Dissertation.
2. Preparing the questionnaire.

Achievements for the week:

1. Collected information from different sources for the introduction.

2. Also prepared few questions for the questionnaire.

DIVYA KHUNGER

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 AMITY COLLEGE OF COMMERCE AND FINANCE
DISSERTATION: WEEKLY PROGRESS REPORT

For the Week Commencing: 06 Feb 2017 10 Feb 2017

WPR: 5

Name: Divya Khunger

Programme: BFIA VI Enrolment No: A3110114024

Name of the Guide: Mr. Atul Kumar

Dissertation Topic: "Changing Indian Payments Landscape with specific reference to Mobile
Wallets and Payment Banks"

Targets for the week:

1. Read various research papers and write the Review of Literature section of the paper.
2. Prepare the remaining questions for questionnaire and complete the research
methodology section of report.

Achievements for the week:

1. Read different research papers and wrote the Review of Literature.

2. Prepared remaining questions for the questionnaire.
3. Also wrote the Research Methodology.

DIVYA KHUNGER

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 AMITY COLLEGE OF COMMERCE AND FINANCE
DISSERTATION: WEEKLY PROGRESS REPORT

For the Week Commencing: 13 Feb 2017 17 Feb 2017

WPR: 6

Name: Divya Khunger

Programme: BFIA VI Enrolment No: A3110114024

Name of the Guide: Mr. Atul Kumar

Dissertation Topic: "Changing Indian Payments Landscape with specific reference to Mobile
Wallets and Payment Banks"

Targets for the week:

1. Sending the questionnaire to people for data collection.

Achievements for the week:

1. Sent the questionnaire to people for data collection.

DIVYA KHUNGER

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 AMITY COLLEGE OF COMMERCE AND FINANCE
DISSERTATION: WEEKLY PROGRESS REPORT

For the Week Commencing: 20 Feb 2017 24 Feb 2017

WPR: 7

Name: Divya Khunger

Programme: BFIA VI Enrolment No: A3110114024

Name of the Guide: Mr. Atul Kumar

Dissertation Topic: "Changing Indian Payments Landscape with specific reference to Mobile
Wallets and Payment Banks"

Targets for the week:

1. Completing data analysis and interpretation section of report.

Achievements for the week:

1. Completed data analysis and interpretation of the responses collected by using pie charts.

DIVYA KHUNGER

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 AMITY COLLEGE OF COMMERCE AND FINANCE
DISSERTATION: WEEKLY PROGRESS REPORT

For the Week Commencing: 27 Feb 2017 3 March 2017

WPR: 8

Name: Divya Khunger

Programme: BFIA VI Enrolment No: A3110114024

Name of the Guide: Mr. Atul Kumar

Dissertation Topic: "Changing Indian Payments Landscape with specific reference to Mobile
Wallets and Payment Banks"

Targets for the week:

1. Complete the conclusion section and limitations of study of the report.

Achievements for the week:

1. Completed the conclusion section and limitations of study of the report.
2. And also done the formatting of the report.

DIVYA KHUNGER

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 PLAGIARISM REPORT

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