Banking for the last mile | ApnaPay
Digital India Payments

Seeing banking as an establishment for human advancements may appear to be an abnormal frame of mind now. One may state that 99% of the general public views banking as a “detestable realm” which wrecks the network as opposed to creating it. Nonetheless, it’s a missed perception since the greater part of humanity has no access to banking benefits by any stretch of the imagination. There are various places on Earth where the simplest financial services are an extravagance.

Almost 50 years ago, L.K. Jha, the RBI governor of that time, wrote to Morarji Desai, The Union Finance minister of that time, that more banks should open in rural regions as this will back off the expansion of banks in urban areas. Jha proceeded to compose that the inclination of banks to open branches in a focused soul in urban zones had prompted an overwhelming fixation in urban areas. The situation still seems to be accurate five decades later. Official data demonstrates that just 27 percent of rural areas in India have a bank inside five km span and the quantity of those without a basic bank account is yet immense. Likewise, India has far less banks contrasted with its population size. There’re just 13.54 bank branches per 1 lakh adults. While the proliferation of bank branches in rural and urban areas is relatively equivalent, the number of branches per lakh adults in rural and semi-urban areas is far less. This is clearly in light of the fact that a dominant part of the nation, more than 80 percent, lives in the provincial and semi-urban zones.

As mentioned above, even starting today, just 27% of rural areas in India have a bank in 5 km sweep. A vast mass of India’s populace lives on the environs of the formal economy. Living in far-flung corners of the country, illiteracy, lack of monetary education, not being alert to the provision and/or worth of monetary services and lack of connectivity are few of the numerous reasons why customers in these areas stay unbanked. Moreover, banks in rural area are few and much mediate, creating the reach troublesome for several, amid working hours.

To address these obstacles and to broaden financial inclusion, there was a vital push from the government over the last few years for banks to reach out to the unbanked, at first through straightforward or essential records and now as the Prime Minister’s Jan Dhan Yojana (PMJDY). With an initial focus on opening just 75 million bank accounts by January 2015 under the scheme, Modi’s administration activated an oft-recalcitrant state apparatus to expand access to basic savings accounts with extra benefits in the form of debit cards, insurance cover, and overdraft facilities. The numbers are noteworthy — over 24.1 crore bank accounts with total gathered balance of Rs 42,094.24 crore. Opening these banking sluice gates enhanced account usage and brought marginalized or the unbanked groups into the financial ecosystem. Apart from enabling account ownership and expanding the financial service reachability, the PMJDY additionally encouraged financial inclusion for an assortment of demographics.

Many banks have started the doorsteps service to reach out the wider audience. Why go to the bank? Give the bank a chance to come to you. The idea of banking at doorsteps depends on this very start. Indeed, with riotous schedules and time constraints, value of time is by and large progressively felt and this is accepted to build the utilization of doorstep banking in India. Also, seeing the open doors aplenty, banks all things considered – extending from HSBC to Axis Bank and ICICI Bank to DCB – are bouncing on the fleeting trend with their new offerings.

Many POS companies shake hands with the banks to contribute to this revolutionary new way to bank right at customer doorstep making banking a whole lot easier and hassle free. Well, how about becoming a bank that lets the customer open an account without a trail of paperwork, signatures or waiting in long queues on branch visits? How about if banks are able to bring their branch closer to the customer? Let the customers transact, withdraw, deposit and transfer funds without visiting your branch ever. That’s the whole concept of doorstep banking wherein the banking correspondent entertain the customer at their doorstep with the help of a banking POS machine. The customer can get instant eKYC done and get an account opened sitting back at his home without any branch visits. Also, all transactions conducted at regular ATM can be done at doorsteps via POS machines and Micro ATM like balance inquiry, bill payments, mini statements, account updates and more.

Technology and advancement can do wonders in any sector of the economy. One such is banking wherein with technology, banks are reaching the last mile to broaden the financial inclusions system and since existing banking technologies are recent, a business delivery model is evolving gradually.

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