Money & Banking

Jana SFB launches UPI QR-based loan installment payment facility

Surabhi Mumbai | Updated on March 24, 2020 Published on March 24, 2020

Jana Small Finance Bank, along with the National Payment Corporation of India, has launched a UPI QR-based loan installment payment facility for its customers.

The move comes at a time when banks are advising their customers to carry out banking services from the safe confines of their home.

Cost-efficient method

However, Ajay Kanwal, Managing Director and CEO, Jana SFB, said the bank had been working on the facility for some time to introduce a cost-efficient and easy method to repay loans.

“We want to create a very easy option for them; so, we reached out to NPCI and looked at the market in China where the whole system works through QR codes. It is the most cost-efficient and easy-to-use methodology. We were working on it for a couple of months and it just got launched,” Kanwal told BusinessLine.

While the facility is currently available for the over 40 lakh Jana SFB customers, the lender plans to offer it to other micro finance agencies, too.

There are about five crore micro finance customers who would be paying back about ₹5,000 crore of cash on a monthly basis. If we can digitise that it will be a big saving,” Kanwal noted.

In a statement on Tuesday, Jana SFB said: “While UPI QR-based payment mode has existed for P2P (person to person) and P2M (person to merchant) payments, this functionality launched by Jana Small Finance Bank now enables its 40 lakh plus customers to generate UPI QR code for their loan account and make instalment payments instantly using any of the UPI applications.”

Plans to float IPO

When asked about the proposed initial public offering by Jana SFB, Kanwal said the bank has time till March 2021 to meet the licensing requirement of listing.

“There is enough time for us. We are working with lawyers on getting the paperwork,” he said, adding that there has not been any decision on fund-raising as part of the IPO.

The bank’s capital adequacy ratio stands at more than 20 per cent and Kanwal said there is enough growth capital at present.

Published on March 24, 2020
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