Kiosk Banking – ATMs and banking kiosks can be found all over India, primarily in rural and isolated places. Customers can use these to access basic banking services like depositing and withdrawing money, among other things. The Norwegian term Kommunikasjon Integrert Offentlig Service Kontor, which refers to a tiny, open-fronted cubicle, is short for kiosk. In the language of banking, it’s a service designed to provide low-income and isolated communities with access to standard banking services. The Reserve Bank of India (RBI) launched kiosk banking as a way to promote financial stability and inclusion in rural and isolated areas of the nation where access to traditional banking services is restricted, mostly because there aren’t any bank branches there.
What is Kiosk Banking ?
Ensuring the financial security of all individuals, irrespective of their identity or place of residence, necessitates financial inclusion through kiosk banking. Because there aren’t any bank branches, those using kiosk banking can’t visit the bank. Rather, the bank visits the region to handle transactions, approve credit, and make these services accessible to low-income populations. In communities, internet-connected kiosks with staff on hand to assist clients in obtaining basic banking services are modest booths. The majority of mainstream banks across all industries private, public, and cooperative open a kiosk for customers. Typically, the services offered include deposits, withdrawals, remittances, etc. The people and the banks interact through the kiosks. Requirements that are started at the kiosk such as opening a bank account or making a deposit are forwarded to the closest branch for processing.
Working of Kiosk Banking
Financial inclusion through kiosk banking is essential for preserving the economic stability of all citizens of the nation, regardless of who they are or where they dwell. It is useful in situations where there aren’t any open bank branches in the area, making it impossible for a consumer to visit the bank. Rather, the bank travels to the area to manage credit, process transactions, and help low-income populations get access to these services.
In India, little booths known as kiosks have been installed with internet access and personnel on hand to help clients with basic banking services. Numerous mainstream banks, including cooperative, public, and private ones, have installed customer kiosks. Typically, kiosks offer services like remittances, deposits, and withdrawals. The public can interact with the banks through the kiosks. Open bank account and deposit requests, for example, are usually sent to the closest branch for processing when submitted through a kiosk.
Kiosk Banking System Objective
The purpose of this banking function is to help and benefit those who cannot maintain a minimum balance in their accounts, as well as the unbanked population. It also helps people who live in remote places without access to basic banking services and are unable to travel long distances. More significantly, users can use this service for a variety of banking operations, such as money transfers, account openings, cash withdrawals, remittances, and deposits, in addition to micro lending and insurance.
Benefits of Kiosk Banking
Some of the key benefits of the Kiosk Banking are as follows:
- Customer service points (CSPs), sometimes known as kiosk machines, are positioned close to clients’ residences to facilitate easy access to the business.
- Customers are able to transact via NEFT and RTGS.
- Because kiosks are set up as tiny booths or in stores, there are never lines.
- Banks can now use the check-drop facility more easily.
- With kiosk banking, KYC paperwork and other procedures are expedited.
- For online transactions, it now has an internet banking capability.
- Financial transactions have little or no fees attached to them.
- For retailers and store owners that place kiosk machines in their stores or outlets, it serves as an additional source of revenue.
- The location and store hours of the retail business determine the kiosks’ operating hours.
- You don’t need to pay for transportation to make cash deposits anyplace.
- Retailers can receive commissions for any transaction involving a cash withdrawal or deposit, as well as for creating new accounts and sending money.
Features of Kiosk Banking
Some of the key features of the Kiosk Banking are as follows:
- Typically, the kiosk banking system offers a simple zero balance savings account
- The highest transaction amount per day is Rs. 10,000.
- You are only allowed to keep a maximum balance of Rs. 50k. If the account balance exceeds Rs.50, 000, it will convert to a regular bank account.
- Rather than requiring a signature, a digital fingerprint can be used to access the savings account.
- Only the account holder may make transactions, and only with cash.
- Additionally, clients can open an account for a fixed deposit (FD) or recurring deposit (RD).
- Customers of the kiosk banking system are eligible for up to Rs. 10,000 in accidental coverage.
Components of Kiosk Banking
There are two parts to the kiosk banking system:
- Customer Service Point (CSP): To acquire prompt resolutions for any issues they may have with account procedures or transactions, customers can speak with a kiosk bank CSP.
- Kiosk Machine: A kiosk machine is the second part of a kiosk banking system. Customers can use it to complete transactions and access additional banking services, such as balance inquiries and check deposits.
- A kiosk banking machine’s parts consist of the following:
- Cash acceptor
- Keyboard with trackball
- Barcode scanner
- Integrated full-page thermal printer
- Integrated speakers
- Touch and non-touch displays
- Video camera
Requirements to Launch a Kiosk Banking Business
The following criteria must be met to launch an online banking kiosk:
- Anyone can open a kiosk banking company on their property, including individuals, store owners, merchants, and small business owners.
- The candidate must be at least eighteen years old.
- A minimum of 100 to 200 square feet are needed.
- Internet, printer, and computer access
- Shop owners can start a kiosk banking business if they are currently in charge of Customer Service Points (CSP).
- The Ministry of Micro, Small, and Medium Enterprises (MSME) shall receive a registration form from the business entity.
Bank Account Aadhaar Card Link
Documents Required to launch a Kiosk Banking Business
Some of the important documents required to launch a Kiosk Banking Business are as follows:
- The corresponding bank’s application form filled
- Identity Proof like Aadhaar, Driver’s license, Voter’s ID
- Applicant’s Ration card
- Address proof of the retail shop where the Kiosk is to be set up: Electricity or other amenities bill
- Applicant’s recent photographs
How Does Kiosk Banking Get Started?
Installing a kiosk banking system could appear difficult. Nevertheless, once a dependable, knowledgeable manufacturer is located to design and construct the kiosk, the procedure is greatly expedited. The following should be considered while establishing a new kiosk banking service:
- You need to get in touch with a reputable and well-known kiosk manufacturer.
- In order to run a kiosk banking service, you need to be aware of the environmental requirements, which include things like space, electrical connection availability, internet connectivity, and more.
- After completing the aforementioned steps, you can install the kiosks and track client interactions to improve your ability to meet consumer needs.
Things to Consider Before Using Kiosk Banking
The following are some important things to think about before using a kiosk for banking:
- Kiosk setup costs could be substantial, making it difficult for many small firms to budget for them.
- There aren’t many transactions. As a result, the employees will have to handle inquiries from clients about transactions.
- Bank kiosks may be vulnerable to theft and damage.
- There isn’t much interpersonal communication.
- It may take some time for customers in isolated and rural locations to get used to utilising banking kiosks.