A JOURNAL OF COMPOSITION THEORY ISSN : 0731-6755

Members’ Perception about the Services Offered by Payments with Special Reference to Namakkal District

Dr.N.Senthil Kumar Research Supervisor in Commerce, Kandaswami Kandar’s College, Paramathi Velur, Namakkal District, Tamil Nadu, India

L.Balasubramanian Research Scholar in Commerce, Kandaswami Kandar’s College, Paramathi Velur, Namakkal District, Tamil Nadu, India

Abstact India Post (IPPB) is a 100% government owned payments bank operating under the Department of Posts, Ministry of Communications, which aims to utilize all of India's 155,015 post offices as access points and 3 lakhs postal postmen and Grameen Dak Sewaks to provide house to house banking services. The first phase of the bank with 650 branches and 3250 post offices as access points was inaugurated on 1 September 2018. Over ten thousand postmen have been roped into the first phase.

Key Words: owned payments, credit assessment, niche bank licences

Introduction

India Post has 1.55 lakh offices across the country, nearly 2.5 times the bank network. It already has 17 crore post office savings bank accounts, some of which it hopes will move to the payments bank. The Department of Post (DoP) has always been keen to get a universal bank licence. They earlier had discussions for an universal bank licence, when the entire discussion around niche bank licences came in; be it or Payments Bank from a distribution or network point of view, a payments bank licence emerged to be more appropriate. Huge Distribution Asset

DOP is not a lending institution today. They do not have the practices on the ground to do credit assessment, risk management and all other bank-related activities. But they have huge distribution asset, whether the physicality of the network or human capital. DOP assets are naturally aligned to a payments bank (PB) model. DOP is the largest if the customer consider distribution capability or last-mile trust. The dakiyaa delivers post and money order, opens RD account and now they will also open bank.

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Payments bank is a new model of conceptualised by the Reserve . Both current account and savings accounts can be operated by such banks.

History On 19 August 2015 India Post got licence to run as payments bank from . On 17 August 2016 it was registered as a public limited government company for setting up a payments bank. The pilot project of IPPB was inaugurated on 30 January 2017 at Raipur and . The first phase nationwide inauguration happened on September 1, 2018. In August 2018 the Union Cabinet approved a cost of Rs.1435 crore for setting up the bank. IPPB would be like any other bank but it will operate at a smaller scale without involving any credit risks and can't issue advance loans or issue credit cards.

Range of Products

IPPB will offer a range of products such as savings and current accounts, money transfer, direct benefit transfers, bill and utility payments, enterprise and merchant payments. These products, and related services, will be offered across multiple channels (counter services, micro-ATM, mobile banking app, SMS and IVR), using the bank's state of the art technology platform. The plan is to use all of India Post’s 1.55 lakhs access points by December 2018 to provide the service.

Services India Post Payments Banks offers savings accounts, money transfer and insurances through the third parties, bill and utility payments. The Bank will reach to rural and far-flung areas of the country, delivering banking services to the doorstep of every Indian. The bank offers savings and current accounts up to a balance of Rs 1 Lac. The services include;

 QR Card: Customers can use QR code payments eliminating the need to remember account numbers, PINs and passwords.

 Unified Payments Interface

 Immediate Payment Service

 National Electronic Funds Transfer

 Real-time gross settlement

 Bharat BillPay

 Direct Benefit Transfer

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Tie up with PNB Metlife and Bajaj Allianz

The IPPB will not offer any ATM debit card. Instead, it will provide its customers a QR Code-based biometric card. It has already tied up with PNB Metlife and Bajaj Allianz to sell insurance products and hopes to enter into more financial service partnerships. The cabinet had approved 80 per cent increase in spending for IPPB to Rs 1,435 crore, a move that will arm it with additional ammunition to compete aggressively with existing players like and Payments Bank. Direct Benefit Transfer The Direct Benefit Transfer (DBT) Scheme was launched in 2013 by the Government of India with an aim to reduce leakages by cutting out middlemen and transferring benefits/subsidies directly to the beneficiary's bank account. This scheme is made easier by IPPB. IPPB mobile banking app

The customers can pay through Indian Post bank account by opening a bank account. First the customers have to install IPPB mobile banking app from google play store. The account holders should follow the steps; 1. Opening the android app. 2. Entering the aadhar number along with the mobile number. 3. Enter the OTP sent by India Post Payments bank on your registered mobile. 4. The service options will be displayed and it can be utilised for services.

Objectives of the Study  To study the profile of India Post Payments Banks in Namakkal District  To analyze members’ perception about the services offered  To analyze the schemes available for the customers  To examine the problems faced by the customers and offer suggestions Hypothesis 1. There is no significant relation between the level of satisfaction and the services offered. 2. There is no significant association between demographic variables and motivational factors. Research Methodology

The present study is an empirical one. Field survey method and personal interview technique have been adopted for the collection of the required data from the selected India

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Post Payments Banks and its members. The secondary data have been gathered from the bank and primary data have been collected from the selected respondents by using schedules constructed for the purpose.

Sampling Procedure

A multi stage sampling procedure was adopted for the study. Namakkal Revenue District has been selected purposively because of its unique characteristics. Namakkal district has been one of the industrially, cooperatively and educationaly developed districts of Tamil Nadu state. The other considerations like proximity, financial and time factors have also contributed to select the particular district for an in-depth study. For the purpose of the study 8 India Post Payments Banks have been selected by using simple random sampling method. Totally 376 customers have been selected for study.

Field Work

The officials of the Bank were contacted according to their convenient places and timings and required data have been gathered from the records and registers and also from their perceptions. The customers were directly contacted and interviews are carried out in the convenient timings and places. After creating a good rapport by explaining the purpose of the study, a good response has been received from each and every customers. Secondary data from the bank primary data from the selected respondents have been gathered without any complexity.

Tools Used

Chi-Square Analysis The chi-square analysis has been used to test the significance of the influence of demographic characters over the opinions of the respondents. The chi-square statistic is

2 2 O  E    E Here O: Observed frequency E: Expected frequency

Average Score Analysis After converting the qualitative information into a quantitative one using a five point scale, the average scores were obtained on various issues to determine the mean scores regarding satisfaction regarding services.

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Parametric test of two sample t-Test and One way analysis of variance for more than two groups are applied to for judging the significance of the difference between means scores after testing the normality by Q-Q plot. Satisfaction regarding Services - Educational wise The relation between educational qualification and level of satisfaction regarding services rendered by the Co-operative Housing Societies is shown in Table 1.1. TABLE No.1.1

SATISFACTION REGARDING SERVICES - QUALIFICATION WISE Range Mean Education F Mean SD ANOVA p Min Max % No formal 69 64 100 80.78 6.22 70.25 education Primary 91 70 94 80.88 5.36 70.33 Secondary 98 69 94 81.42 5.43 70.80 0.940 0.441 Higher 74 63 96 80.45 6.48 69.95 Secondary Degree 44 75 92 82.34 4.22 71.60 Total 376 63 100 81.09 5.66 70.51 ** Highly Significant Source: Computed by the researcher

From the Table it is clear that, the level of satisfaction among the educated ranges from 75 to 92 for degree holders, 70 to 94 for primary education, 69 to 94 for secondary education, 64 to 100 for people with no formal education and 63 to 96 for the customers with higher secondary education. The level of satisfaction regarding the services provided by the India Post Payments Bank is maximum for degree holders. Further, since the p value is greater than 0.05, the result is not significant at 5 percent level. Hence, there is no significant association between educational qualification and the services rendered by India Post Payments Banks Findings

 As per the age wise distribution majority of the respondents (25.53 percent) are in the age group of 36-40 years

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 18.35 percent of the respondents have no formal education, 24.20 percent have primary education, 26.06 percent of the respondents have secondary education, 19.68 percent of the respondents have higher secondary and 11.70 percent of the respondents are graduates.  Majority (43.9 percent) of the sample respondents have come to know about the availability of and assistance through their friends, relatives or neighbours

Suggestions

 The number of users of India Post Payments Bank is high but the loyal members are low.  The services provided by the India Post Payments Bank must reach all the age groups.  The workload of the bank employees should be minimized and vacancies should be properly filled.  Though training has been given for the employees with regards to new technologies and computerization they are not competing with nationalised bank with regards to schemes and services as such. Conclusion

Department of Posts assets are naturally aligned to a payments bank model. These banks will have a wide network of access points particularly in remote areas. They will supplement their own network with business correspondents and even depend on network provided by others. A big challenge facing the new public payments bank is whether it can manage to earn the profits required to survive as a standalone business entity. Payments banks can issue services like ATM cards, debit cards, net-banking and mobile-banking extended options like other banks.

References

1.Press Information Bureau. "Cabinet approves Revised Cost Estimate for setting up of India Post Payments Bank". pib.nic.in. Retrieved 5 September 2018. 2. Sengupta, Devina; Singh, Karunjit (31 August 2018). "Government expects India post payments bank to be profitable after 2 years: Communications minister ". The Economic Times. Retrieved 5 September2018. 3. "India Post Payments Bank launched: Some important facts about IPPB | Latest News & Updates at DNAIndia.com". dna. Retrieved 5 September 2018.

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