Payment bank facility will help reduce subscriber churn for the operators: Experts

Follow Us

With telecom operators like Vodafone and Bharti Airtel receiving nod for payment bank from RBI, experts suggest that the subscriber churn of these operators would reduce at a considerable rate. This is because the subscribers of these operators who opt for banking service are unlikely to switch the service provider as they enroll for banking service.

payment-bank-operators




The banking service, hence, proves as a new means for the telecom operators to connect with the customers. With full MNP turning into realty, subscriber churning was a biggest problem that operators face. When the customer begin dealing with an operator as a banking partner, they are unlikely to shift to new providers. However, those operators with no banking service would continue to see some churning.

The RBI gave nod to 11 entities to accept payments from customers, including India Post, Reliance Industries Ltd., Aditya Birla Nuvo, Tech Mahindra, Sun Pharma, National Securities Depository Ltd., Cholamandalam Distribution Services Ltd., Fino PayTech Ltd. and Paytm, besides Vodafone and Bharti Airtel. They can accept remittances and deposits, but cannot provide loan services.

The rating agency CRISIL has predicted that the payment banks’ contribution to the revenues of the telecom operators is likely to remain at less than 1% at least for next 4 to 5 years. Moreover, around 40 percent of India’s population remains unbanked.

Reported By

Reporter

An astute writer with a track record in writing and publishing content for various industries, Ria brings on board her wealth of experience in journalism and love for technology to TelecomTalk. When not writing or reading, she spends a copious amount of time daydreaming and finding obscure Japanese folklore on the internet.

Recent Comments

shivraj roy :

Just like MINT mobile ,Orange etc in the USA? You mean we need more telecos which tie up with existing…

Telecom Sector of India to Get More Reforms: Report

Saket :

that name is none other than TATA GROUP

BSNL Subscriber Base Over the Last Decade

Saket :

To give you relevance, Market structure with just 2.5+ 1 govt player is really not good either for industry, nor…

Telecom Sector of India to Get More Reforms: Report

Faraz :

BSNL has a chance if Tata tele services decide to use BSNL 4G/5G network ( maybe as a mvno provider…

BSNL Subscriber Base Over the Last Decade

Krishn :

Might be handed over to some competent entity to run on lease for 25-30 years!

BSNL Subscriber Base Over the Last Decade

Load More
Subscribe
Notify of
1 Comment
newest
oldest most voted
Inline Feedbacks
View all comments