Its difficult for payments bank to survive in long run ? "70% of transactions in India are performed through cash as most of the daily purchasesare done through cash only without any payment gateway and technology withmajority of the population is still underbanked. So, this is the need of some systemthat facilitates the electronic payment system that caters to the population whichremains excluded from the banking sector. The electronic payment system also is theneed of the hour today as it helps in removing the black money from the moneymarket as every transaction is recorded automatically which not the case with cashtransaction. To facilitate the above, the RBI recently issued the licenses of thePayment Banks to the private sector. They are different from the traditional banks asthey have only the right of making transactions like payments through variousgateways but not accepting deposits and dispersing loans as the traditional banks do.So, this helps in growing the digital space in the financial market."

Payment banks- Meaning Carry out most of the banking operations but are not allowed to provide loans…

Answered: Its difficult for payments bank to…

Business

Finance

Its difficult for payments bank to survive in long run ?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

“70% of transactions in India are performed through cash as most of the daily purchases are done through cash only without any payment gateway and technology with majority of the population is still underbanked. So, this is the need of some system that facilitates the electronic payment system that caters to the population which remains excluded from the banking sector. The electronic payment system also is the need of the hour today as it helps in removing the black money from the money market as every transaction is recorded automatically which not the case with cash transaction. To facilitate the above, the RBI recently issued the licenses of the Payment Banks to the private sector. They are different from the traditional banks as they have only the right of making transactions like payments through various gateways but not accepting deposits and dispersing loans as the traditional banks do. So, this helps in growing the digital space in the financial market.” Q“It’s difficult for…
70% of transactions in India are performed through cash as most of the daily purchases are done through cash only without any payment gateway and technology with majority of the population is still underbanked. So, this is the need of some system that facilitates the electronic payment system that caters to the population which remains excluded from the banking sector. The electronic payment system also is the need of the hour today as it helps in removing the black money from the money market as every transaction is recorded automatically which not the case with cash transaction. To facilitate the above, the RBI recently issued the licenses of the Payment Banks to the private sector. They are different from the traditional banks as they have only the right of making transactions like payments through various gateways but not accepting deposits and dispersing loans as the traditional banks do. So, this helps in growing the digital space in the financial market.” “It’s difficult for…
“70% of transactions in India are performed through cash as most of the daily purchases are done through cash only without any payment gateway and technology with majority of the population is still underbanked. So, this is the need of some system that facilitates the electronic payment system that caters to the population which remains excluded from the banking sector. The electronic payment system also is the need of the hour today as it helps in removing the black money from the money market as every transaction is recorded automatically which not the case with cash transaction. To facilitate the above, the RBI recently issued the licenses of the Payment Banks to the private sector. They are different from the traditional banks as they have only the right of making transactions like payments through various gateways but not accepting deposits and dispersing loans as the traditional banks do. So, this helps in growing the digital space in the financial market.” Q.“Digital…
“70% of transactions in India are performed through cash as most of the daily purchases are done through cash only without any payment gateway and technology with majority of the population is still underbanked. So, this is the need of some system that facilitates the electronic payment system that caters to the population which remains excluded from the banking sector. The electronic payment system also is the need of the hour today as it helps in removing the black money from the money market as every transaction is recorded automatically which not the case with cash transaction. To facilitate the above, the RBI recently issued the licenses of the Payment Banks to the private sector. They are different from the traditional banks as they have only the right of making transactions like payments through various gateways but not accepting deposits and dispersing loans as the traditional banks do. So, this helps in growing the digital space in the financial market.” a) “It’s…
Evaly, an e-commerce company in Bangladesh, has been in the news for the last few months for its delinquency in delivering customers' orders. Evaly has liabilities of 543 crore Taka against assets of 121 crore Taka. In your opinion, should the Bangladesh Bank intervene? Why, or why not? Please explain your rationale. Note: Please answer shortly using concepts of finance
16) Which of the following is a reason that financial institutions want consumers to use del cards? A) They give the institution a hard "paper trail" for customer transactions. B) For every transaction, the financial institution receives a transaction fee from merchants. C) They reduce the number of teller transactions and check processing costs. D) They allow institutions to replace all their banks with less expensive ATMS. E) They increase the amount of interaction the institution has with its customers.
The Banking system acts as a backbone for any economy.Banks are the Financial Institutions that provide banking and other financial services to theircustomers, the journey of banking in India has pass through various phases from 18th centuryto 2020, with the passage of time especially after 1990s Banks realize in India that if theywant to survive they have to focus on customer service as well as customer relationshipmanagement. Gone are those days when customer use to walk-in the branches but slowlyafter 2010 with the advent of technology this walk-in reduced and the new word which camein light was “customer convenience”. At the same time RBI realises that if they want toincrease the flow of funds in economy, financial inclusion plays a very vital role and for thisreason in 2013 RBI constituted a committee headed by Dr. Nachiket Mor to study about thecomprehensive financial services for small businesses and low income households and resultis known to every one of us that Payment Banks…
The Banking system acts as a backbone for any economy.Banks are the Financial Institutions that provide banking and other financial services to theircustomers, the journey of banking in India has pass through various phases from 18th centuryto 2020, with the passage of time especially after 1990s Banks realize in India that if theywant to survive they have to focus on customer service as well as customer relationshipmanagement. Gone are those days when customer use to walk-in the branches but slowlyafter 2010 with the advent of technology this walk-in reduced and the new word which camein light was “customer convenience”. At the same time RBI realises that if they want toincrease the flow of funds in economy, financial inclusion plays a very vital role and for thisreason in 2013 RBI constituted a committee headed by Dr. Nachiket Mor to study about thecomprehensive financial services for small businesses and low income households and resultis known to every one of us that Payment Banks…
Question # 1 K&N is situated in Karachi, it has franchises in all the region of Pakistan. All payments from outlets are average Rs. 200 million per day and it is through check. The overall time to mail the check and transfer the check to the head office bank account is 5 days. a) How can K& N reduce this time in order to speed up the collections? Suggests alternative plans. b) In order to reduce the delay in collection, K& N is considering to hire five people who will manage the collection at different provinces and it will have a cost of Rs.120 million per year, this will reduce the collection time by 1 days. Should company consider this plan?
Suppose that, as a result of increased use of electronic payments, banks no longer need to hold as much vault cash. Banks decide to reduce their vault cash holdings by $250million. a) Show the effects this would have on the balance sheets of commercial banks and the central bank. b) If, at the same time, depositors decide to reduce their cash holdings by $50million by depositing that amount with their banks, show the combined effect of these decisions on the balance sheets of commercial banks.
The COVID-19 pandemic has affected one of your customers, NEST Ltd adversely. Even though the economies are fast recovering, they have contacted your company to request to purchase on credit instead of cash on delivery. Your boss, Alan, the Marketing Manager has instructed you to review their request. He has asked you to review NEST Ltd’s latest set of financial statements. (a)In addition, identify other information(other than balance sheet, incomes statement and cash flow statement) that will be helpful in deciding whether to accede to NEST Ltd’s request? (b)You have also noticed that compared to last year, the allowance for bad debt for Nest Ltd has increased from 2% to 4 % of the accounts receivable. Discuss how this information will impact your review.
Which statement is correct? A. Firms prefer to increase processing delay on disbursements. B. Firms open regional offices so their employees can pick up lockbox payments throughout the day. C. The Check Clearing Act for the 21st Century is designed to reduce total collection time to one day. D. Firms cannot use lockboxes if they use cash concentration accounts.

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS