Introduction to Kiosk Banking
Kiosk banking is an initiative by the Reserve Bank of India (RBI) to foster financial inclusion and security in rural and remote areas of the country where access to all banking facilities is limited, mostly due to the lack of a bank branch in the area.
Understanding Kiosk Banking
Financial inclusion through kiosk banking is essential for ensuring financial security of all citizens of the country, regardless of who they are and where they reside in the country. In kiosk banking, because of the lack of bank branches, the customer cannot go to the bank. Instead, the bank comes to the area to process transactions, allow credit, and enable access of these services to low income groups. Kiosk are small booths with internet connections established in villages with personnel to help the customers avail basic bank services. Most mainstream banks in all the sectors, private, public and cooperative, open a kiosk for the people. The services provided are usually withdrawals, deposits, remittances, etc. The kiosks act as a touchpoint for the banks and the people. When requests are initiated in the kiosk, usually like the opening of a bank account or request for making a deposit, they are transferred to the nearest branch which processes it.
Highlights of Kiosk Banking
- Services that a kiosk banking offers are opening of accounts, deposit and withdrawal of cash, money transfer to other branches of the bank, etc. Checking of account details is also possible.
- Kiosks also exist in urban areas in the form of ATMs. Urban kiosks are unmanned mechanical devices that are watched by security personnel and they prompt self operation.
- The poorer groups of society can open a ‘no-frills’ bank account, which is essentially a zero minimum balance bank account, along with other benefits specific to low income groups in remote areas.
