Introduction
Do you know that as of the financial year 2023, the FII (Financial Inclusion Index of India) was 60.01, according to the RBI?
Kiosk banking can be considered a project of the RBI (Reserve Bank of India) to promote financial inclusion and security in rural and remote regions where access to banks is not at all easy, most likely because there are no branches in the region.
Financial inclusion can be considered a way of providing financial and banking services to the individual. It seeks to bring everyone in society by offering them basic financial services, regardless of their income and financial status. Its primary focus is the provision of financial solutions for the most economically marginalized. The term is mainly used to describe the offering of loans and savings services to the poor in an inexpensive and easy-to-use form. Its objective is to assist those who are poor and marginalized to get the most value from their funds and acquire the financial education they require. With the growing advancements in the field of financial technology and electronic transactions, more and more organisations are helping financial inclusion.
What is Financial Inclusion?
As per census 2011, only 58.7% of households are availing banking services in the country.
Financial inclusion is the process of making sure that financial services and products are available to those in need at low cost and in a transparent way through various institutions and infrastructure. This concept was initially presented by the RBI (Reserve Bank of India) in 2005. So, why is financial or fiscal inclusion so important? Financial inclusion helps in the improvement of the availability of resources in the economy and strengthens the idea of saving for the disadvantaged and underprivileged. Financial inclusion can be considered an important step towards a more inclusive economy. It assists in the development of the poor. In a country like India, financial inclusion is essential to lift up the most marginalized and poor through the provision of improved fiscal products and services.
Objectives of Financial Inclusion
When it comes to the distribution of households who took a loan- 59% were from institutional 32% from non-institutional and the rest were from both sources.
The objectives of fiscal inclusion are the facilitation of the following benefits:
- A basic and no-frills bank account to receive and make payments.
- Products of savings including investment and pensions.
- Simple overdrafts and credit products linked with no-frills accounts.
- Transfer of funds which is also known as money transfer services.
- Micro as well as non-micro insurance provisions.
Comprehending Kiosk Banking
Banking through kiosks is essential to ensure the security of finances for each and every citizen of the country, regardless of their identity and residence. With kiosk banking, a client cannot visit the bank due to the absence of branches for banks. Instead, the banks come into the area to complete transactions, access credit and allow access to these facilities for people with lower income. Kiosks are small booths with internet connections located in rural areas with staff to assist consumers with basic banking services. All major banks across all regions, including private, public and cooperative have kiosks for people. The services that are being offered are typically withdrawals and deposits, remittances and more. The kiosks serve as a contact for individuals and banks. When people make requests at the kiosks for opening a new bank account, or the request to make deposits, they are transferred to the branch closest to them which processes their requests. The highlights of kiosk banking are as follows:
- A kiosk bank offers services including the opening of bank accounts, depositing and withdrawing cash, and transferring to various bank branches in other countries among others. The ability to check account information is also feasible.
- Kiosks can also be found in urban areas as part of the ATMs. Urban kiosks are generally mechanical devices which are supervised by security personnel, allowing self-operation.
- The marginalized can get a no-frills bank account which is essentially a bank account with 0 balance along with other advantages which are only available to those with low income in remote regions.
How to Open Banking Kiosks with AISECT FI?
To open your own banking kiosk with AISECT FI, you need to follow these hereunder-mentioned steps:
- You need to visit https://www.aisectfi.com/
- From the upper-hand bar, you have to select a kiosk and click on registration.
- From the Kiosk registration page, you need to click on the ‘please select’ dropdown menu and select Banking Kiosk FI.
- You have to add in all the important details and submit them.
- You can later check for the current status of your application from the same upper-hand bar by clicking on the ‘Kiosk Request Status’ or you can also visit https://aisectfi.com/ and directly click on the New Kiosk Enquiry form and submit it to check the status.
Conclusion
BC or business correspondent are an extended arm of the Bank Branch which helps in the provision of fiscal and banking services to consumers in unbanked and underbanked areas. Hence, promoting and encouraging access to affordable and useful financial products and services that meet their requirements such as payment, transaction, savings, credit as well as insurance which are delivered responsibly and sustainably. Join AISECT Fi in its mission to promote financial access to services for all. Register online today and become a part of our family of happy kiosk owners. Join us in our mission to promote access to financial services for all.
