Understanding Kiosk Banking in 2025
Kiosk banking is an important banking service mainly available in rural and remote parts of India to help you access banking easily. These are small booths, often with internet access, where you can do basic banking tasks like depositing money, withdrawing cash, and sending money without needing to go to a bank branch. The Reserve Bank of India (RBI) started this service to support people who don’t have bank branches nearby, making banking simple and reachable for everyone.
How Kiosk Banking Works
Kiosk banking brings the bank closer to you, especially when there is no bank branch near your home. Instead of you travelling to the bank, the bank comes to your area through a kiosk. These kiosks are small cabins with staff to help you with transactions and other banking services. Most banks in India, including private, public, and cooperative banks, have set up kiosks. You can withdraw cash, deposit money, transfer funds, and even open accounts at these kiosks. When you want to open an account or make a deposit, the kiosk sends your requests to the nearest bank branch for processing.
The Purpose Behind Kiosk Banking
The main goal of kiosk banking is to help people who cannot keep the minimum bank balance or who live far from banks. It also supports the unbanked population, giving them easy access to basic banking services from their local area. Besides deposits and withdrawals, kiosks also offer money transfers, account opening, micro-lending, and insurance services.
Why Choose Kiosk Banking: Benefits for You
- Kiosk booths or Customer Service Points (CSPs) are set up close to your home for easy access.
- You can use online money transfer methods like NEFT and RTGS through kiosks.
- No long queues since kiosks are small and often located inside stores.
- Banks can use check-drop facilities easily through kiosks.
- KYC (Know Your Customer) processes are faster when done at kiosks.
- Online internet banking facilities are available for many transactions.
- Banking transactions at kiosks often have very low or no fees.
- If you are a store owner, placing a kiosk can be an extra source of income through commissions.
- The operating hours of kiosks depend on the store timings, which can be convenient.
- You save on transportation costs as deposits and withdrawals happen locally.
- Retailers can earn commission on cash deposits, withdrawals, account openings, and money transfers.
Main Features of Kiosk Banking
- Kiosks usually provide a simple savings account with no minimum balance.
- The maximum daily transaction you can do is Rs. 10,000.
- Your account balance can go up to Rs. 50,000; above that, your account changes to a regular savings account.
- You can use a digital fingerprint instead of a signature to operate your account.
- Only you, the account holder, can perform transactions and only in cash.
- You can also open fixed deposit (FD) and recurring deposit (RD) accounts through kiosks.
- Accidental insurance coverage up to Rs. 10,000 is available for kiosk banking customers.
Parts of a Kiosk Banking System
- Customer Service Point (CSP): A place where you can solve your account or transaction problems quickly with the help of staff.
- Kiosk Machine: A machine used by customers to check their balance, deposit checks, and do other banking tasks.
- The kiosk machine usually includes:
- Cash acceptor
- Keyboard and trackball
- Barcode scanner
- Thermal printer
- Speakers
- Touch and non-touch screens
- Video camera
How to Start a Kiosk Banking Business in 2025
- Anyone can open a kiosk banking service, including individuals, shopkeepers, merchants, or small business owners.
- You must be at least 18 years old.
- A space of 100 to 200 square feet is needed to set up the kiosk.
- You will need internet, a printer, and a computer to operate the kiosk.
- Shop owners managing Customer Service Points (CSP) can also start a kiosk business.
- Your business must be registered with the Ministry of Micro, Small, and Medium Enterprises (MSME).
Documents Needed to Start a Kiosk Banking Business
- Filled application form from the bank.
- Identity proof such as Aadhaar card, driver’s license, or voter ID.
- Your ration card.
- Address proof of your shop where the kiosk will be installed (like electricity bill).
- Recent passport size photographs.
Starting Your Kiosk Banking Service
Setting up kiosk banking might seem hard at first, but once you find a trusted kiosk manufacturer, it becomes easier. You need to make sure the location has required space, electricity, and internet access. Once set up, you can start serving customers and keep track of their needs to improve your services.
Before Using Kiosk Banking, Keep in Mind
- Setting up kiosks might need some investment which may be hard for small businesses.
- The number of transactions might be low, so staff has to help customers more.
- Kiosks can be targets for theft or damage.
- There is limited face-to-face contact with bank employees.
- It may take some time for people in rural areas to get comfortable using kiosks.
Kiosk banking brings banking closer to your home, making it easier and cheaper to manage your money, especially if you live far from bank branches. You can use these banking kiosks to save time and reduce travel, while also getting access to important financial services.