Kiosk Banking

Kiosk Banking-An Introduction

The Reserve Bank of India (RBI) defines financial inclusion as the process of ensuring access to financial services and timely and adequate credit where needed by vulnerable groups such as weaker sections and low income groups at an affordable cost. In the essence of financial inclusion, KIOSK banking is an important concept and basically developed for rural areas of country where less number of banks are and people can't reach to the bank to use their services.

It is conceived that the kiosks will functions with the support of leading banks in the private, public and cooperative sectors and using the shops as a touch-point for basic banking services such as cash deposits, withdrawals and remittances apart from micro-credit and insurance. Like the ordinary bank branches, the kiosks will offer all the basic services of banking.

How it functions?

A retailer can open a no-frills bank account for a customer by recording fingerprint details and taking a photograph of the customer. The details along with other documents are forwarded to the affiliated bank branch to carry out the know-your-customer process. Once the account is up, a customer can withdraw, deposit or remit a maximum of Rs 10,000 per day through the internet-enabled kiosk branch.

Kiosk Banking

Kiosk transactions are bio-metrically secured; printed acknowledgment for each transaction is issued to the customer and has End-to-end process of account opening & transactions online. Micro savings and Micro remittance are done through No Frills Savings Bank Account.

Kiosk Banking related FAQs

Q.1 What Services will Kiosk banking provides?

Initially, SBI Kiosk banking will provide the following services:

• Deposit of Cash
• Withdrawal of Cash
• Money transfer to another SBI account holder in other locations
• Account related services

Q.2 What are the benefits to customers

• A 'No Frill Savings Accounts' through KIOSK Banking Model
• General purpose Credit Card (GCC)/Kisan Credit Card (KCC)
• Term Deposit/Recurring Deposit
• Regular Saving Bank Account
• Loans against Term Deposit Receipt (TDR) etc
• Hassle free opening of savings account.
• No Queues.
• No Travel expenses
• Easy deposits, withdrawals & cash remittances.
• Easy opening of R.D. & F.D Account.
• Deposits can be made from anywhere.
• Transfer Subsidies , Scholarships and other Benefits can be directly credited to the account.

Q.3 What type of transactions the customer will carry on?

• This is called a no-frills account where there is no minimum balance or charges levied.
• Maximum balance can be Rs 50000. (Balances above this can be held, but then account is converted to a regular bank account and the terms of the bank and documentations will apply to these accounts).
• Minimum Balance -Zero Balance.
• Maximum limit of transactions is Rs10, 000/- per day. No Cheque book is issued.
• Only Cash Transactions can be made & only in person by the account holder.
• There is no signature required and only electronic thumb impression is used to access/use the account.
• Customer also benefits from long banking hours : As long as the shop is open.

Q.4 Income generation from CSP Kiosk Banking?

Earn on opening New Account, every Cash Deposit/ Cash Withdrawal/ Loans and Money Transfer or any services of the bank.

For Bank Correspondent registration 

Existing Common Service Centres as well as new ones can be registered through the portal https://bconboarding.csccloud.in/

Who can register

• The VLE must have a minimum of 100 transactions per month on the DSP Portal.
• The CSC ID should be at least 6 months old.
• Police verification certificate not more than 3 months old.
• The VLE must have IIBF Certificate.
• Should be minimum 12th Pass.
• Minimum Cibil Score of 650 and above.

The application can also be tracked in the given portal.

Source : CSC portal