A Study on Sustainability of Payment Banks in India using Technology Acceptance Model

Payment banks are new era banks that provide limited services but with simple access. The Reserve Bank of India established it with an aim to offer remittance services to migrant labor workforce, low-income households, small businesses, and other unorganized sector entities. Awareness plays a major role in the mindset of the people towards the digitalized mode of the payment system. Payment banks are currently facing many challenges as they are not allowed to lend money. Their major source of income comes only from the interest of the government securities in which they can invest. Despite all these, payment banks are struggling with huge losses and their existence is in a dubious situation. Six out of eleven payment banks are assessing the option of converting themselves into a small finance bank. In this context, the study focusses to analyze the key factors contributing to sustainability of the of payment banks. A measure of the trust and its role was used to test the relationship along with perceived usefulness and perceived ease of use. Actual usage was observed as a perception of usefulness and ease of use among the respondents. Payment banks offer a paradigm shift in making India a digital economy.