Banks, fintechs embark on profitable pilgrimage at Maha Kumbh Mela

Amid a crisis in deposits, banks hope to leverage the biz opportunities, with state govt projections estimating that event could generate Rs 25,000 cr in revenue and a Rs 2 trillion economic spinoff

With millions of pilgrims gathering for the Maha Kumbh Mela 2025 in Prayagraj in Uttar Pradesh, banks and financial technology (fintech) companies are seizing the opportunity to boost their deposits and acquire new customers by extending their services at the world’s largest religious gathering. They have introduced ‘Bank on Wheels’ vans, special edition automated teller machine (ATM) debit cards, and new branches.

 

Amid a crisis in deposits, banks hope to leverage the business opportunities, with state government projections estimating that the event could generate Rs 25,000 crore in revenue and a Rs 2 trillion economic spinoff.

 

A bank official said: “I can’t provide an exact percentage of deposit increases, but this will help, especially with financial inclusion for small and midsized enterprises, aiding in non-performing asset recovery.” The event is also expected to benefit local self-help groups, artisans, hoteliers, and food vendors.

 

Most banks have seen their share of low-cost current account savings account (casa) deposits shrink over the past year. State Bank of India, for example, experienced a decline in its casa ratio from 42.88 per cent at the end of the first quarter of 2023-24 to 40.7 per cent in 2024-25.

 

According to the latest Reserve Bank of India data, deposit growth has lagged behind credit growth, with bank loans rising by 13.7 per cent year-on-year, while deposits increased by only 10.6 per cent.

 

ICICI Bank has set up a branch at the Mela ground, offering services such as currency exchange, cash deposits, foreign exchange services, and fund transfers.

 

Bank of Baroda (BoB) is promoting digital payments with two branches, onsite and mobile ATMs, coin vending machines, and Aditi, a generative artificial intelligence-powered virtual relationship manager. BoB is also encouraging the use of its Unified Payments Interface app, BoB ePay, by offering incentives to users.

 

Similarly, Indian Bank has launched a special edition ATM debit card that combines financial empowerment with a celebration of Uttar Pradesh’s cultural heritage. Featuring the Maha Kumbh logo, this card will be issued with zero annual charges to Indian Bank customers in Uttar Pradesh. The bank plans to distribute roughly 200,000 cards during the Mela, serving as both a memento of the spiritual event and a tool for efficient financial management.

 

Airtel Payments Bank is enhancing the banking experience for devotees and merchants by setting up 10 kiosks across the Mela grounds. These kiosks allow devotees to withdraw cash and transfer funds from any Aadhaar-linked account, addressing cash-handling challenges. Local merchants can deposit their earnings directly, minimising the need to carry cash. The bank is promoting digital payments through quick-response (QR) codes, enabling quick and secure transactions, while Soundbox devices provide audio payment confirmations in local languages.

 

Fintech players like PhonePe are also capitalising on the event, launching the ‘Maha Kumbh Ka Maha Shagun’ offer, which providesRs 144 cashback on the first transaction for first-time users. This promotion runs until February 26, 2025. PhonePe is using themed QR codes, banners, and a special message on its SmartSpeaker, wishing attendees ‘Maha Kumbh ki Shubhkamnayein, Maha Shagun ke Saath’, to promote cashless payments and drive digital financial inclusion in India.

 

PhonePe also announced a partnership with ICICI Lombard General Insurance to offer insurance coverage for devotees travelling to the Maha Kumbh. The insurance plan, available from January 13, 2024, to February 25, 2025, will be offered in two variants.

 

“This comprehensive yet affordable insurance plan is available in two variants, catering to the needs of a broad spectrum of travellers: Rs 59 per traveller for individuals travelling by train or bus, and Rs 99 per traveller for individuals travelling by domestic flights,” PhonePe said in its press statement.

 

The Maha Kumbh Mela, which commenced on January 13 and will continue until February 26 in Prayagraj, is one of the largest spiritual gatherings globally, attracting millions of faithful.

 

Describing the scale of the event, Praveen Khandelwal, secretary-general of Confederation of All India Traders and Member of Parliament from Chandni Chowk, Old Delhi, emphasised its unparalleled significance.

 

“Maha Kumbh 2025 is set to become the largest hub of religious economy in the world,” he said. This monumental event is expected to boost trade in Prayagraj and surrounding regions while benefiting key sectors like railways, air transport, and roadways.

 

Delhi, being India’s largest trade distribution centre, will play a pivotal role, supplying goods and services worth Rs 40,000 crore to Prayagraj and nearby areas, according to Khandelwal.