PayNearby simplifies group cash withdrawals in rural India

By Vriti Gothi

PayNearby has rolled out a dual-authentication system to digitise cash withdrawals and deposits for Self-Help Groups (SHGs), positioning itself as the first Indian FinTech to operationalise compliant, last-mile cash-in and cash-out (CICO) services for group accounts.

The capability, implemented across PayNearby’s platform and its Digital Naari network, aims to address long-standing frictions in the SHG–bank linkage model. Traditionally, SHG withdrawals require the physical presence of two authorised signatories at a bank branch, often leading to delays, higher transaction costs and limited participation by women members. These constraints can leave funds idle or informally held, which affects the timely deployment of funds for livelihoods, micro-enterprises, and community initiatives.

PayNearby said the new service could benefit up to one crore SHG members by enabling secure, auditable access to group funds within local communities, reducing dependence on repeated branch visits. The dual-authentication mechanism is designed to strengthen governance and risk controls while allowing members to transact digitally through neighbourhood banking correspondents.

“SHGs play a pivotal role in rural economic progress, but accessing funds by members has always been cumbersome,” said Anand Kumar Bajaj, Founder, MD and CEO of PayNearby. “With the dual-authentication SHG module, we are bringing secure and convenient access to every village, every doorstep.”

From a sector perspective, the move reflects a broader push to extend digital public infrastructure principles to group-based finance, where compliance and transparency requirements have historically limited innovation. By combining identity checks with local agent networks, FinTechs are seeking to bridge the gap between formal banking systems and grassroots financial activity.

The launch underscores how FinTech-led process redesign, rather than new credit or payment products alone, is becoming central to advancing financial inclusion. For SHGs, which form the backbone of India’s rural savings and credit ecosystem, digitised and accountable access to cash could improve fund utilisation and participation, particularly among women members.