Banking kiosks or ATMs are available at multiple locations across India, mostly in remote and rural areas. These enable customers to access at least the basic banking facilities like making deposits, withdrawals, and more. The word ‘Kiosk’ is a short form for Norwegian phrase Kommunikasjon Integrert Offentlig Service Kontor, which means a small, open-fronted cubicle. In banking terms, it is a service introduced for bringing common banking services to remote and low-income sections of the society.
In this blog, we explore what makes kiosk banking so popular, and how it is playing an important role in introducing a growing number of people to modern banking.
Kiosk banking is an initiative by the Reserve Bank of India (RBI) to promote financial inclusion and security in rural and remote areas of the country. Since access to all banking facilities could be limited in rural and remote areas, primarily due to the lack of operational bank branches, such an initiative was highly likely to promote kiosk banking.
The primary reason for launching the initiative was to enable easy access to banking facilities for as many people as possible, regardless of the time of day.
Customers can access traditional banking facilities, including money transfers, deposits, withdrawals, and more. Furthermore, kiosk banking also enables customers to check their bank balances.
No matter who they are or where they live, financial inclusion through kiosk banking is crucial for maintaining the economic stability of all the country’s residents. It is beneficial for times when a customer cannot visit the bank due to a lack of operational bank branches nearby. Instead, the bank comes to the region to handle transactions, grant credit, and facilitate access to these services for low-income groups.
Kiosks – small booths with internet connections and staff to assist customers in using essential bank services have been set up throughout India. Many mainstream banks across private, public, and cooperative have opened kiosks for customers. Services, including withdrawals, deposits, and remittances, are typically offered at kiosks.
The kiosks serve as a point of contact between the public and the banks. Requests made in a kiosk are typically routed to the nearby branch for processing, such as requests to open a bank account or create a deposit.
The kiosk banking system has the following two components:
Customers can contact a kiosk bank CSP to raise concerns regarding any account procedures and transactions to get quick solutions.
The second component of a kiosk banking system is a kiosk machine. It enables customers to perform transactions and other banking services, including cheque deposits, balance inquiries, and more.
The components of a kiosk banking machine include the following:
Listed below are the primary features of the kiosk banking system:
This banking feature was introduced to assist and benefit the unbanked population, and those unable to keep a minimum balance in their accounts. In addition, it also serves those who cannot travel great distances and do not have access to basic banking facilities in their areas.
More importantly, customers can do several banking transactions with this service, including microlending and insurance, as well as money transfers, account openings, cash withdrawals, remittances, and cash deposits.
Here are the most prominent benefits of an online kiosk banking system:
Listed below are the primary differences between ATMs and kiosks:
Here’s the eligibility to start an online kiosk banking business:
You will need the following documents to start a kiosk banking business:
It may seem challenging to set up kiosk banking. However, the process is significantly streamlined once a reliable, skilled manufacturer is found to design and build the kiosk. When setting up a new kiosk banking service, keep the following in mind:
Listed below are some crucial aspects you should consider before venturing into kiosk banking:
Account opening and monitoring, cash deposits and withdrawals, money transfers to other bank branches, etc. are a few services provided by kiosk banking. Besides other advantages, the poorer segments of society are able to create ‘no-frills’ bank accounts and access basic banking facilities even at remote locations with the help of kiosk banking.
The services offered by kiosk banks include fund transfers, cash deposits, cash withdrawals, check clearance, passbook entries, issuing chequebooks, loan facilities, printed statements, and more.
The minimum age required to apply for kiosk banking is 18 years.
The maximum limit of transactions you can make from a banking kiosk is Rs. 10,000.
Yes, kiosk banking allows customers to start FD and RD accounts.
Yes, the kiosk banking system has been established by the Reserve Bank of India (RBI) as a means to provide banking services to rural and remote parts of the country.
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