Nucleus Software PaySe Passes RBI Regulatory Sandbox


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Nucleus Software, the leading provider of lending and banking software solutions to major global financial companies, announced that its offline retail payment product, PaySe, has been successfully evaluated by RBI as part of the Regulatory Cohort Sandbox with “retail payment” as the theme. PaySe is an online and offline digital payment solution designed and created with the goal of democratizing money by making banking services available to unbanked people in remote areas.

PaySe’s offline payment solution has been used to digitize the SHG (Self Help Group) centric ecosystem and has been tested for P2M (Person to Merchant) transactions in level 6 locations from November 16, 2020 to February 15 2021 by RBI. PaySe was among the few entities able to complete this test phase within the allotted time. RBI also said in its release letter that PaySe can be considered viable for wider adoption by the rural masses.

“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 to digitize the entire SHG ecosystem across India, so that people at the bottom of the pyramid are not without basic formal financial services, ”says Mr. Vishnu R Dusad, MD , Nucleus Software.

PaySe is currently working with State Rural Livelihood Missions to digitize the existing process of loan disbursement and collection in order to increase the financial inclusion of the rural masses. PaySe has been successfully implemented in a district of Haryana and has been used there by cluster-level federations (CLFs), village organizations (VO) and self-help groups (SHG) since 2018. It has been successfully used by more than 22,000 women members of the state. Rural Livelihood Mission (SRLM) in over 225 villages to digitally perform micro-savings, loan repayments, market transactions and bill payments. Transactions over INR 155 cores have been processed digitally in the past 2.5 years.

PaySe stands for Pay Securely and considers the safety and security of funds for people at the bottom of the pyramid, especially in rural areas, to be its top priority. It enables 2FA (two-factor authentication or two-factor authentication) for every transaction. Hardware selection and design, end-to-end system design and implementation, and product manufacturing of PaySe cards and devices are well designed, with security as the primary focus. The offline device can be used for 6-8 months with a single charge.

The reality is that the people at the bottom of the pyramid lack basic financial services due to the lack of physical and digital infrastructure. Financial exclusion remains the biggest issue for this vulnerable section as they mostly do cash transactions and bear the cost of money every step of the way. Financial institutions are unable to provide them with credit services due to a lack of credit history. PaySe offers a unique low-cost digital financial services solution for this segment that allows them to have better control over their money despite these obstacles. PaySe can also be used with poor or even no internet connectivity and is easy to use with minimal literacy skills. PaySe is a digital treasury solution that builds the credit history of people who primarily conduct cash transactions. With PaySe, financial institutions such as microfinance companies can offer a multitude of financial services to this segment, for example loan disbursement, micro-payments, microinsurance, etc.

PaySe also helps address the access challenges that banks and other nonbank financial corporations (NBFCs) face when making basic banking services accessible to the unbanked. Direct debits (DBT), micro-pensions, savings deposits, recurring deposits, etc. can now be easily processed using PaySe, in both interior and remote areas.

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