What is Kiosk Banking

Last Updated: 11 Oct 2024

The rapid technological advancement that has shaped today’s digital landscape benefitted every industry, from healthcare and education to finance. All these are constantly exploring innovative methods to offer convenient customer services as well as expanded reach.

One such innovative and exciting approach in the oeuvre of finance is the introduction of Kiosk Banking. This new concept has decreased the distance between the doorsteps of individuals and banking services. But what is kiosk banking, and how it serves as miniature bank branches?

This article will focus on kiosk banking meaning, its business operations, eligibility for establishment, benefits, and purpose. A thorough reading until the end will equip you with helpful information. Are you curious? Let’s dive in!

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What Is Kiosk Banking?

Kiosk refers to Kommunikasjon Integrert Offentlig Service Kontor, which is basically a small cubical or space denoting a compact booth that offers banking services to every individual, even to customers living in the most remote areas, without requiring them to pay a visit to any bank branch.

Remote villages often suffer from issues concerning connectivity, and in such places, the lack of physical branches of banks restricts the account holders from securing bank service facilities. In order to adopt an all-inclusive banking system even in the most remote areas, kiosk banking is introduced by the Reserve bank Of India.

Inclusions Of Kiosk Banking System

These kiosks are primarily established in the local neighborhood of different legalities and help people to avail banking services as well as to manage their bank accounts efficiently. This kind of banking service is inclusive of essentially two components:

Kiosk Machine:

The machine comes with a thermal scanner, barcode scanner, cash acceptor, keyboard with trackball, and all other necessities to provide an A-Z banking machine. It offers all the facilities required on the part of the users to execute most of the banking facilities. The kiosk can help in the deposition of cheques, cash, checking account balances, or painting passbooks.

Customer Facility Point:

Commonly referred to as CS, it is a Kiosk counter that can be used by individuals to establish a connection to their respective private or public sector banks. It functions as a customer-centric center where they can quickly contact the CSP employed to advance concerns or register complaints concerning any problems with the individual’s account or the banking transaction.

How Does Kiosk Banking Serve As A Business Opportunity?

With India’s attempt to embrace a digital economy, the indian government, along with the RBI and the central regulatory bank of India, are making innumerable efforts to ensure that every citizen can entertain banking facilities regardless of their residential place. This, however, has also opened a business opportunity for many as the owner of a Kiosk receives a commission from the respective bank for offering efficient banking services.

The kiosk owner can earn a commission based on each and every withdrawal as well as cash deposits on the terms of commission-based profit laid down by the bank. A transaction with a higher value will also fetch a higher amount of commission on the part of the Kiosk owner.

How Can You Start A Kiosk Business- Eligibility Criteria

During the process of application, the bank required the individuals to have specific skillsets and qualifications to make sure that they can offer banking services to the customers efficiently. The license or certificate provided by the bank can only be secured if the individual meets all the eligibility criteria mentioned below:

• Any small business owner, retailer, or individual may apply for kiosk banking.
• The applicant must be above 18 years old, while there’s no maximum age limit.
• The individual applying for Kiosk banking must complete a higher secondary education, i.e., till 12th standard.
• The applicant must possess an area of 100-200 sq ft. that is legally acquired or rented.
• Necessary resources such as a computer, stable internet service, and a printer are required.
• The entity must hold an MSME registration under MoMSME (Ministry of Micro Small and Medium Enterprises)
• Those who have already managed a customer service point or have already opened it may apply for online or physical kiosk banking.

Kiosk Banking Services Benefits

Kiosk Banking services offer a wide range of benefits for various individuals, which are listed below:

• It extends banking services to unbanked or underserved areas, mainly rural and remote communities.
• Essential banking services can be availed by customers without having to travel long distances offering the utmost convenience.
• Kiosk banking services offer ease of access as they remain open for extended hours, even during the weekends, making a provision for the customers to ensure flexible access to banking services.
• It offers efficient and quick services for basic transactions, thereby reducing customers’ waiting time.

Kiosk Banking Limits:

Kiosk banking makes provision for individuals to entertain a bank holder facility with Rs. 50,000 as the maximum limit and Rs. 10,000 as the limit for maximum daily transactions. If the account balance exceeds the mark, it will be shifted to a steady bank account.

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Conclusion:

To sum up, Kiosks, by entertaining the capabilities of digital transactions and promoting the adoption of digital banking services in remote areas, give way to financial inclusion and a one-stop solution for the various financial needs of the rural population.