A Study on Kiosk Banking In Inclusive Growth of Rural IndiaA Study on Kiosk Banking In Inclusive Growth of Rural India

Abstract

Purpose - The purpose of this study is to find the significant effort by the government of India to promote the kiosk banking services. This paper provides the first overview of important implications of financial inclusion, to investigate the purpose and role of Kiosk banking in unbanked and under banked area of India.

Design/methodology/approach - This research study mainly uses the deductive approach to consider secondary sources of data where research questions have been developed in order to demonstrate the findings. An initial literature review has been done to know the current status and involvement of kiosk banking in rural area.

Findings - There are still lots of unbanked area in India where the banking facilities outreach from the people. There is a lack of financial literacy among the villagers in rural area which is the main barrier of people to use banks and banking facilities. Kiosk bank provides the banking facilities like deposit, withdrawn, and money transfer of cash through bank mitra with the use of few easy steps.

Research limitations/implications - More efforts have to be made to mitigate the challenges of adoption of banking facilities in rural unbanked and under banked area. The results of this study show that the lack of research cited as one of the most serious limitations of kiosk banking and hence the limited use for transaction purposes. One of the vivid implications of kiosk banking is the awareness and trust of the rural population and the facilities provided by the kiosk banks are limited in nature then the bank branch in India.

Practical implications - This paper has some relatively important marginal implications. First, the fact of having a licence from nationalised bank like, SBI. From this, the paper identified the role of SBI kiosk banking and its registered BC (Business Correspondent) as a portable ATM/Branch of correspondent bank.

Originality/value - This paper is first to analyse the suitability and functionality of Kiosk Banking in unbanked area of India. It also proposes alternative mode as an entrepreneur for job creation for the youngsters in rural area that provide a better fit with potential business medium in India.