In agreement with the fiscal presence policy, some time ago, India's government noticed that all villages with a population of over 2000 should be endowed with a banking service. With this, India's government has planned to help the urban region's labor classes by creating corresponding banking opinions for their families in rural areas. The government also hoped to create a banking culture within the rural masses.
With more than 23000 branches, the State Bank of India (SBI) viewed this government notice as an opportunity to lessen congestion at its branch offices and enhance service quality for its customers. This led to the deployment of Web-enabled kiosk banking by the State Bank of India.
SBI's kiosk banks have the facility of check and cash deposits, and their withdrawal services as similar to those of an ATM's. Existing clients who are not enrolled in kiosk banking may also use the cash withdrawals and deposits system. The SBI Kiosk banking system reduces the account opening costs from Rs 200 at a branch office to Rs 20 at a kiosk terminal.
The SBI system puts retailers in charge of kiosk terminals; each kiosk owner gains monetary benefits through commission. Every savings account which is opened earns the retailer Rs 10 and every transaction 0.5% of the transacted amount. The initial setup costs a retailer Rs 30000, and the system is ready to use within 24 hours.
There is an assured process to follow for opening an account. The kiosk banks employ six different languages for transaction requirements – use biometric scanners for identity verification of the account holder. Suppose you want to open, zero-balance savings account. In that case, the holder will have to provide a digital photograph- along with address and photo- identity proof since this is a special effort to teach a banking culture in the rural and lower-class urban masses, who may not have adequate documents. For such people, a letter by an authority (such as sarpanch) serves as identity proof. Plans are advancing to incorporate the identity verification (through the biometric scanners) into the government's unique identification (UID) database.
The kiosk banking system is prepaid, and thus the retailers may only permit transactions within the particular paid-up amount. The money secured from the transactions become his working capital up to the limit of the prepaid amount. The account limit is INR 50,000, and the daily transaction limit is INR 10000. If the kiosk banking customers exceed INR 50000 limit, they will have to go to a branch office and transact the money to a general saving account.
However, some kiosk banking systems have access to the SBI core banking system (CBS). This access is limited to the kiosk banking CBS, and the growth in the kiosk banking customer base will imply an increase in SBI's database. To extend its current services to the new customer base, SBI's kiosk banking is doing a great job and empowering rural India as well.
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