Nucleus Software announced on Monday that RBI has successfully evaluated its offline retail payment product – PaySe – under the cohort of Regulatory Sandbox with “Retail Payment” as its theme. PaySe is an online and offline digital payment solution that has been designed to make banking services available in remote geographies.
Regulatory sandbox usually refers to live testing of new products or services in a controlled or test regulatory environment for which regulators may (or may not) permit certain relaxations for the limited purpose of testing.
In an official statement, Nucleus Software noted that RBI had tested the product for P2M (Person to Merchant) transactions in Tier 6 locations from November 16, 2020, to February 15, 2021.
The central bank has stated that PaySe may be considered viable for wider adoption among rural masses. Nucleus Software explained that PaySe’s offline payment solution was used to digitise the SHG (Self Help Group) centred ecosystem.
“We designed PaySe as a digital transformation solution especially for people in rural areas, taking into account their digital and financial literacy. PaySe is working with an aim to digitize the complete SHG ecosystem across India, so that people at the bottom of pyramid are not devoid of the basic formal financial services”, said Vishnu R Dusad, MD, Nucleus Software.
The firm noted that PaySe is currently working with State Rural Livelihood Missions (SRLM) to digitise the existing process of loan disbursement and collection in order to increase financial inclusion for rural masses.
“It has been successfully used by 22,000+ women members of State Rural Livelihood Mission (SRLM) in over 225 villages to digitally do micro-savings, loan repayments, merchant transactions and bill payments,” noted Nucleus Software. It added that transactions worth over Rs 155 crore habe been processed digitally through PaySe in the last 2.5 years.