PayNearby introduces dual-authentication system for SHG cash transactions

PayNearby has rolled out a dual-authentication-based system to enable digital cash withdrawals and deposits for Self-Help Groups (SHGs), marking a step towards digitising SHG-bank transactions at the local level.

The service, implemented across PayNearby’s network and its Digital Naari platform, allows SHG members to carry out cash-in and cash-out transactions within their communities, reducing the need for repeated visits to bank branches. According to the company, the initiative could benefit up to one crore SHG members.

Traditionally, SHG withdrawals require the physical presence of two authorised signatories at a bank branch, a process that often leads to delays and higher transaction costs. These constraints have, in several cases, resulted in funds remaining unused or being held informally, affecting timely deployment for livelihood and micro-enterprise activities.

PayNearby’s system introduces dual authentication to digitise these transactions while maintaining compliance and auditability. The company said the mechanism is designed to improve transparency and risk management in SHG fund access, while enabling members—particularly women—to withdraw or deposit cash closer to home.

The initiative aligns with broader efforts to strengthen financial inclusion and improve access to formal financial services at the grassroots level, especially for women-led groups in rural areas.