update

The new players will have to take banking solutions to the doorsteps of rural folks using technologies that can process transactions instantly. But why would a customer go to payment banks when post offices exist in every nook and corner of the country? There are over 1.55 lakh post offices and 90 per cent of them are in rural areas. People are also familiar with post office savings product that offers four per cent interest a year and five-year recurring deposits with 8.4 per cent a year. But experts are not amused.
The RBI has stated in its draft guidelines that payment banks are being set up to further financial inclusion by providing small savings accounts and payment and remittances services to migrant labourers, low-income households and small businesses