PayNearby Digitizes SHG Cash for 1 Crore Members
Overview
PayNearby has introduced a dual-authentication system for Self-Help Group (SHG) cash transactions. This digital service allows SHG members to withdraw and deposit funds within their communities, reducing bank visits. The initiative aims to benefit up to one crore SHG members, enhancing financial inclusion and streamlining operations for women-led groups in rural India.
Digital Cash for SHGs
PayNearby has rolled out a dual-authentication system to enable digital cash withdrawals and deposits for Self-Help Groups (SHGs). This initiative aims to streamline financial transactions for up to one crore SHG members across India, marking a significant step towards digitizing grassroots banking.
Overcoming Traditional Hurdles
Traditionally, SHG cash withdrawals necessitated the physical presence of two authorized signatories at a bank branch. This process frequently led to delays, increased transaction costs, and resulted in funds remaining unused. PayNearby's system introduces digital dual authentication, allowing members to conduct cash-in and cash-out transactions within their local communities. The service is implemented across PayNearby’s extensive network and its Digital Naari platform.
Boosting Financial Inclusion
The company stated that the mechanism is designed to enhance transparency and risk management in SHG fund access. This move aligns with broader national efforts to strengthen financial inclusion and improve access to formal financial services, particularly benefiting women-led groups operating in rural areas. The initiative seeks to ensure funds are available for timely deployment in livelihood and micro-enterprise activities.
