Volume VI Special Issue IV April 2026

Name of Author : Mrs. P. Rajalakshmi, Dr. S. Selva Kumar

Title of the paper : Role of Payment Banks in Promoting Financial Inclusion: Evidence from Customers Perspective

Abstract: Financial inclusion has emerged as a key driver of inclusive economic growth by providing access to essential financial services to all sections of society. In India, the introduction of payment banks represents a major institutional innovation aimed at extending banking services to unbanked and under banked populations through digital platforms and simplified banking procedures. This study examines the role of payment banks in promoting financial inclusion from the customers perspective. It analyzes customer awareness, usage patterns, perceived benefits, and challenges associated with payment banks. Using primary data collected through a structured questionnaire and secondary data from published reports and journals, the study finds that payment banks have significantly improved access to basic banking services, particularly for low income and digitally active users. However, limited product offerings, lack of awareness, and trust issues continue to restrict their full potential. The study concludes with policy suggestions to strengthen the role of payment banks in achieving universal financial inclusion.

Keywords : Financial Inclusion, Payment Banks, Digital Banking, Customer Perception, India

DOI :

Page Number : 238-245