PMAY 2.0 drives digital payments, boosts financial inclusion: SBI Research

The Pradhan Mantri Awas Yojana-Urban 2.0 (PMAY-U 2.0) is not only fulfilling the dream of home ownership for millions of urban poor and middle-class families but is also driving a remarkable transformation in digital payment behaviour, noted a research report from the State Bank of India (SBI).

- TBG NETWORK

The scheme, which provides affordable housing loans at subsidized interest rates, has become a catalyst for enhancing both discretionary and non-discretionary spending, says the report. "PMAY is now acting as a change agent with it becoming a catalyst for enhanced discretionary and even non-discretionary spending with a demonstrated wealth effect, financial stability & well-being," noted the report. SBI Research attributes these trends to increased financial stability and inclusion, as access to affordable housing creates a sense of long-term security.