MANAGEMENT OF FINANCIAL

SERVICES MBA362F

Asynchronous Assignment March, 03 2022

SUBMITTED BY
Freya B Rodrigues
3 MBA F6
2128063

MBA PROGRAMME
SCHOOL OF BUSINESS AND MANAGEMENT
CHRIST (DEEMED TO BE UNIVERSITY),
BANGALORE
MARCH, 2022
 1. Outline the financial landscape of India as narrated in the case study.
The financial landscape of India narrated here talks with comparison to 2016 and 2020. Out
of 1.35 billion people in the world, only 1.2L have access to bank branches and that customer
found it tough to travel 20kms to visit the bank which made the transaction cost go steeper.
But the reality as of 2020 was that 4 out of 5 customers have access to banks easily leading to
78% transactions done by cash. This tells the improvements in online transactions where
customers have decided to go with cashless transactions and have adopted the new
technology.
The huge number of migrant workers in India caused it difficult to completely adopt to online
transactions. Another incident of demonetization which caused trigger in minds of customers
to return their currencies to the bank and get a legal currency. This was were Bajaj came up
with PayNearby Solution.

2. Do you think the PayNearby model enhances financial inclusion in India?

PayNearby, the solution given by Bajaj was a novel innovation to make customers pay
without their smart phone. This solution aimed at crowdsourcing the smartphones of
shopkeepers. This led to ease for customers as they could make transactions without the use
of their smart phones.
The small kirana store in the neighbourhood has become as much a part of every Indian's life
as it has of the Indian economy. However, with the rise of e-commerce and global retail
seeking the Indian market, there was an urgent need to train local retailers to perform digital
transactions. By empowering India's most trusted retail outlet, the local kirana,
PayNearby aimed to create a tremendous combination of technology. 
Every retailer onboarded by PayNearby receives training for the services he will provide. It
also distributes regular content in local languages via the app to help retailers understand and
provide better services. A commission is earned by a retailer for each transaction made
through the app. It also increases foot traffic for retailers.
It is thus seen that PayNearby model enhances financial inclusion in India as most of the
Kirana stores are updated as with other people in the society. It is also easily adoptable,
instant and easy onboarding, simple and secure app. This can help kirana store vendors to
stay updated digitally.