• SANDESH DSOUZA

The Indian financial system has witnessed remarkable changes since 1991.Banking sector is one among which is performing really well after liberalization, and success can truly be associated with major banking reforms taken by RBI some major technological changes that have take place over years . In 2014, RBI introduced two new categories of banks into the Indian financial system, namely Payment Banks and Small Banks. The core objective of introducing these banks to increase the financial inclusion and spreading financial product and services tountapped rural area .Payment banks is a new kind of bank which is potential with the express purpose of extending the reach of banking to vast majority of the unbanked and under banked segments of the population. This paper presents about the framework of the payment banks, and the expected benefits from the payment banks. How this Indian Post Payment Bank going to be remarkable step towards providing financial services to customers, especially migrant workers and those from lower income households, as well as bring them into the formal financial system. IsIndian post Payment bank going to be second wave of financial inclusion after the first wave of the Pradhan Mantri Jan Dhan Yojana. This paper is completely based on secondary data to give overall idea about payment bank and its working mechanism and how the concept of payments bank kills two birds with one stone. Firstly, its movement towards the financial inclusion initiative by widening the digital payment infrastructure. Secondly, it encourages the Financial Technology culture in the Indian banking. Findings are favorable in deepening the financial services and financial inclusion in India, especially in the rural areas, mainly focusing on low-income groups and small businesses.

RBI ,Payment Bank , Financial Inclusion , Indian Post Payment Bank.

"Payment Bank:A Revolutionary step of Indian Post Payment Bank towards financial inclusion.", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.5, Issue 10, page no.165-174, October-2018, Available :http://www.jetir.org/papers/JETIRG006021.pdf

"Payment Bank:A Revolutionary step of Indian Post Payment Bank towards financial inclusion.", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.5, Issue 10, page no. pp165-174, October-2018, Available at : http://www.jetir.org/papers/JETIRG006021.pdf