Will use 'click & brick' model for payments bank: Mahindra

IT major Tech Mahindra on Thursday said it will use 'click and brick' model to allow subscribers easy access to its payments bank services, in line with its efforts towards financial inclusion using technologies. Tech Mahindra was among the 11 entities successful applicants that received the Reserve Bank's nod to set up payment banks as part of financial inclusion drive. The bank will be an independent unit under the Mahindra Group led by Tech Mahindra and Mahindra Finance, a rural NBFC, as equal contributors to the new entity, Tech Mahindra said in a statement.

The ultimate vision is to create a technology-led Payment Bank that will reach every customer in India, it added. "We are honoured by this opportunity to drive financial inclusion across India through technology... We will use the 'click and brick' model to ensure easy accessibility for every user of this new payment bank," Mahindra Group Chairman Anand Mahindra said.

This initiative will contribute to the creation of a truly 'Digital India' that empowers every citizen to enhance the quality of their lives, he added. Tech Mahindra already has a licence from the RBI to run a prepaid wallet business. It operates in the market under the brand name - Mobo Money.

"We are the only company that has launched and rolled out NFC-based payment ecosystem (Tap n Pay) that provide excellent user experience and is suitable for low literacy population," Tech Mahindra CEO & MD C P Gurnani said. Tech Mahindra said the new entity will leverage learnings from each of the Group companies to establish a successful payments bank model that is suitable for India and meets the government's vision of a "cash less" society. "Its impact will be felt across small savings accounts, remittance services, low income households, small businesses, unorganized sector entities etc, by enabling high volume-low value transactions in deposits and payments," it added.