Kiosk Banking – Business, Eligibility, Benefits, Purpose
What is Kiosk banking? Get to know the benefits, eligibility & purpose & other details you must know. Read Now!
With the advent of technology, digital banking has become essential to an individual’s financial journey. Financial institutions offer various services that enable individuals to attain financial stability. But, they are not accessible to everyone, even with digital banking becoming a trend in big cities.In villages where network connectivity is still an issue, a lack of physical branches hinders account holders from availing of bank facilities. To ensure that every individual, especially those in remote areas of India, can benefit from the banking facilities, the Reserve Bank of India introduced Kiosk banking services.
Kiosk stands for Kommunikasjon Integrert Offentlig Service Kontor, representing a small cubicle or space. Kiosk banking denotes a small booth that helps and offers banking services to even the most remote customers without them having to visit the bank’s branches.Such kiosks are situated in the local neighbourhoods of various localities. They assist individuals in availing the banking services such as cashing cheques or completing other financial transactions while effectively managing their bank accounts. In India, Kiosk banking services include the following two components.
• Customer Service Point (CSP):The customer service point is a counter in the Kiosk that allows individuals to connect to their respective public or private sector bank. The CSP works as a dedicated centre where customers can contact the employed CSP to register complaints or raise concerns related to any banking transaction or other account-related problems.
• Kiosk Machine:The Kiosk machine contains all the necessary facilities to let users execute almost all the banking facilities. Through this kiosk, one can deposit cash into the bank account, deposit cheques, print passbooks or check account balance. The machine consists of a thermal scanner, keyboard with trackball, cash acceptor, barcode scanner, etc., as a full-fledged banking facility machine.
Benefits Of Kiosk Banking In India
• No Frills Account:Kiosks help individuals open a zero-balance account. Also called a frills account, the bank accounts ensure that owners do not have to maintain a minimum balance, allowing the low-income section of society to avail of such a service.
• Limits:Kiosks allow individuals to have a bank account with a maximum limit of Rs 50,000 and a maximum daily transaction limit of Rs 10,000. If the balance exceeds Rs 50,000, the kiosk shifts the bank account to a regular one.
• Flexibility:Individuals can avail of the banking services through a kiosk using their thumb impressions. There is no compulsion for a signature, ensuring ease for individuals in rural areas.
Kiosk Banking As A BusinessIn the last decade, India has grown tremendously toward being a digital economy. The Reserve Bank of India, along with the Indian government, is making numerous efforts to provide banking facilities to every Indian citizen, irrespective of the place of residence. Since most people from the low-income section reside in rural areas, it becomes impossible for all the banks to have a branch in every Indian village.
However, a physical kiosk to offer online Kiosk banking can be an ideal business move. A Kiosk owner charges a commission from the bank for providing all the banking services, and the bank also provides all the related software to the Kiosk owner. If you own a Kiosk, you can earn a commission on every cash deposit and withdrawal depending on the commission-based profits set by the banks. The higher the transactions, the higher the commission, without any cap on the amount of commission you can earn.
Eligibility To Start A Kiosk Banking BusinessWhen individuals apply for kiosk banking, the banks require them to have specific qualifications and skills to ensure that they can appropriately assist the customers. As the transactions executed through such Kiosks are financial, banks only provide the certificates and licenses to individuals who fulfil the eligibility criteria. Here is the eligibility criterion to apply for kiosk banking in India:
• Entities:Individuals, retailers, small business owners, and shopkeepers can apply for kiosk banking.
• Age Criteria:The kiosk applicant should be 18 years old minimum. There is no limit on the maximum age.
• Educational Qualifications:The applicant must have completed the education till the 12th standard.
• Required Space:The applicant must have a legally acquired or rented area of 100-200 sq ft.
• Resources:The applicant must have a computer, printer, and internet service.
• Registration:The entity should be a registered MSME under the Ministry of Micro Small and Medium Enterprises (MoMSME).
• Past expertise:Entities that have already opened and are managing a Customer Service Point (CSP) can start physical or online kiosk banking.
Avail Of An Ideal Business Loan To Start A Banking KioskIIFL Finance offers varying financial services, including customised and comprehensive business loans. Through IIFL Finance business loan, you can get instant funds up to Rs 30 lakh with a quick disbursal process online and minimal paperwork.
The loan’s interest rate is attractive and affordable to ensure the repayment doesn’t create a financial burden. You can apply for the loan online or offline by visiting IIFL Finance nearest branch and verifying your KYC details.
Q.1: What are the documents required to start a banking kiosk?
Ans: The documents include a bank application form, proof of identity, address proof, ration card, and recent photographs.
Q.2: Do I need collateral to acquire a business loan from IIFL Finance?
Ans: No, IIFL Finance business loan does not require pledging any asset as collateral to take the business loan.
Q.3: Can I open a banking kiosk through the business loan taken from IIFL Finance?
Ans: Yes, you can use the business loan amount of up to Rs 30 lakhs to start a kiosk for banking services. IIFL Finance approves business loans within 30 minutes of application. Once approved, you will receive the loan amount in your bank account within 48 hours.