Definition: The Kiosk Banking is the initiative taken by the RBI for those living in villages or other remote areas who are deprived of banking services due to the non-availability of a bank branch in their locality. In such arrangement, the person is not required to go the bank to avail the banking services. Instead, the bank comes to the village where the person can make the transactions.
Kiosk banking is the important step taken towards the financial inclusion. The financial inclusion means enabling the weaker sections of the society or low-income groups to access financial services and avail the credit at a low or affordable cost. The Kiosks are the small internet-enabled booths established in the villages where the customers can come and avail the basic banking services.
The idea behind the functioning of the kiosk is that it should be supported by the banks in private, public and cooperative sectors through the use of shops. These acts as a touch point between a bank and the customer where the banking services such as deposits, withdrawals, remittances apart from the micro-credit, insurance, and overdraft services could be delivered.
This can be done through a retailer, who can open a no-frills bank account for a customer by taking the photographs and recording the fingerprints and other necessary details of the customer. Then, these details along with the requisite documents are sent to the bank branch to carry out their processing. Once the account is created, the customer can withdraw or deposit money anytime through the internet enabled kiosk branch.
molkaneh says
very good