Kiosk banking is an initiative that RBI took for people living in villages and other remote locations, local banking branches. Under such arrangements, the person is not obliged to go to the bank to use the banking services. Instead, the bank arrives in a town where one can carry out the transaction.
Banking kiosks are an important step towards financial inclusion. Financial inclusion means making the weakest sector or low-income society access to financial services and access to credit at low or affordable costs. The kiosk is a small booth with internet access located in a village where customers have access to basic banking services.
The idea behind the operation of a kiosk is that stores should be used and supported by banks in the private, public, and co-operative sectors. They act as a point of contact between banks and customers and can provide banking services such as deposits, withdrawals, and remittances, in addition to microcredit, insurance, and overdraft services.
This can be done through a retailer who can open a simple bank account by taking a picture and recording the fingerprint and other necessary customer details. These data are then sent to the bank branch along with the required documents for processing. Once an account is created, customers can withdraw and deposit money at any time through an internet-enabled kiosk branch.
Qualification to start kiosk banking business
- Individuals, merchants, retailers, and small business owners can start a kiosk banking business.
- Age Criteria: Applicants must be at least 18 years old.
- Educational Qualifications: At least XII Approved
- Required space: 100–200Sq. Ft. Area
- Availability of computers, printers and internet services
- Shopkeepers who already manage Customer Service Points (CSPs) can start a kiosk banking business.
- The entity must be an MSME registered with the Ministry of Small and Medium Enterprises (MSME).
Each bank will provide kiosk banking business owners with machines to assist in fingerprint authentication of new applicants. We also provide relevant software that is installed on your computer for customer registration purposes. Banks establish fee-based revenue for business owners who start kiosks in specific bank-approved regions.
Functions of the kiosk banking system
- A “no-frills account” with a kiosk banking system, as no minimum balance is required to manage a savings account
- The maximum balance can be held up to Rs. 50,000 (can hold over 50,000 rupees, but the account will be converted to a regular bank account
- The maximum transaction limit is Rs. 10,000 per day (check stubs will not be issued)
- Only cash transactions are allowed. Only account holders are allowed.
- No signature is required. Only electronic thumbprints are used to access savings accounts.
- Accident Insurance: The kiosk banking system provides accidental coverage for Rs. 10,000 to your customers
- You also have the option to open Time Deposit (RD) and Time Deposit (FD) accounts.
