Payment banks: A way to make India a Cashless Economy Rakhecha Pooja*, Dr. Tanwar Manish** *Research Scholar, Rajasthan Technical University, Kota. E-mail: pujajain1987@gmail.com **Research Supervisor, Associate Professor, B.J.S. Rampuria Jain College, Bikaner. E-mail: imanishtanwar@gmail.com Online published on 24 October, 2019. Abstract Indian banking industry passes through tremendous changes and advancement from its origin onwards. But these developments are always failed to cover each and every people in India to banking services. But India just crossed 1 billion mobile subscribers which are more than that of having basic bank accounts. India can achieve growth in banking inclusion by utilizing the increased use of cell phones among population. This provides a greater opportunity to the introduction and development of Payment Banks in India. Payment Banks can be defined as “new model of banks that are permitted to receive cash deposits from customers, store them in a digital wallet and allow customers to pay for goods and services from their digital wallet, which is come under Banking Regulation Act 1949.” Payment Banks can be highly useful for migrant labor, low income households, farmers, small businesses and other users. Each of them can utilize the facilities provided by Payment Banks to manage their financial activities such as savings and remittances. It changes Indian economy to a cashless one by facilitating electronic payments and remittances. This paper aims to study the need of payment banks in a cashless economy and its challenges. Top Keywords Cashless, Payment banks, Needs, Challenges, Economy. Top |