How Can The Kiosk Banking Concept Transform Rural Society

These days there has been much talk about the concept of kiosk bank at the village level. You could be a tag confused or even perhaps disinterested. We would like to say that as a rural youth, if you are educated but unemployed this form of banking is your scope to chalk out a career close to home. This is a major banking reform and a game changer event for Indian banking and simultaneously rural society. This is a concept introduced by the RBI and it is about bringing in the rural folk within the purview of formal banking.

Some even refer to this concept as a CSP Bank because the operations are based on the customer service point, which a bank mitra has to set up at the village level. This is a major banking reform introduced by the RBI and the sole intent is to benefit the rural society. This can be done in two major ways and let me share the details.

It is via a Kiosk Bank the rural folk can be inducted into the formal economy. There are places located far away from a formal bank branch and often the villagers fall prey to agents of dubious chit fund companies. They end up losing their life savings this way. It is with the introduction of this format of banking, they can now save money for the future. These locations also introduce villages to insurance policies and pensions plans for old age.

The kiosk or CSP bank has also catered to the employment needs of the rural educated youth. A bank has to appoint a bank mitra to run the CSP and the RBI guideline clearly states that only unemployed educated youth are eligible to apply. Hence, alongside introducing the villagers to formal banking this scheme has also encouraged employment at the rural level. It is a lucrative career prospect on offer for the educated village youth and one can always apply. If you have space for a CSP set up and are ready to make some investments, this is a scope to make it big in life by associating with the Indian banking industry. You must not miss out on this opportunity.