National Payments Corporation of India (NPCI) has struck a deal with Neobank Niyo to increase financial inclusion and to introduce financial services to about five million blue-collar workers in India. The mission is expected to be a reality by 2022.
The employee payroll solution developed by Niyo, Niyo Bharat, offers a salary account to blue-collar workers. The solution makes it easier for the companies to manage the salary information of these workers.
Kunal Kalawatiya, Marketing Head at NPCI, expressed that the strategic partnership will provide workers with a bank account and empower them with digital banking solutions together with financial security. He said that the NPCI has been aiming to reach out to the vast unbanked population to introduce them to technological innovations.
The partner organisations are utilising the local payment gateway—RuPay, which operates with ATMs, point of sale kiosks, and e-commerce website. The project at hand, Niyo Bharat, will help local institutions to extend the boundaries of their payroll services to cover the disadvantaged sectors of the community.
Also Read: RBI extends digital payments facilities round the clock
The Co-Founder of Niyo, Vinay Bagri, mentioned that Niyo Bharat has been increasing. He added that the main objective of the initiative is to provide digital salary management services and impart education on essential labour laws to offer secure financial solution opportunities to blue-collar workers. Also, the action will inculcate a long-term saving habit among them.
Niyo Bharat allows users to open zero-balance salary accounts at their workplace. The payment cards given out at the time of account opening uses multi-lingual Niyo Bharat mobile app to request for cash advances; offers the flexibility of getting paid before the payday in the case of emergencies. The app also facilitates the workers to buy mutual funds and digital gold instruments starting at amounts as low as Rs.100.
Currently, Niyo Bharat is said to have acquired more than 6,000 business clients and over 1,50,000 users.
Last month, the NPCI signed a contract with Facebook-owned WhatsApp and gave regulatory approval to WhatsApp Pay platform in India.
For any clarifications/feedback on the topic, please contact the writer at apoorva.n@cleartax.in
