Impact of Branchless Banking in Rural Areas as a Part of Financial Inclusion
Impact of Branchless Banking in rural areas as a part of Financial Inclusion
Key words- Branchless Banking, Financial inclusion, globalization and Service.
The self service concept in the modern business is considerable recognition these days. It plays a vital role in reducing costs to an organization by facilitating automated interface between service provider and a customer. The term financial inclusion is offering of services at a lower cost to major sections of the rural people. Open access to public goods and services is a main thing of an open and efficient society. As banking services is in the nature of public goods, it is essential that availability of banking services to the entire population without discrimination is the prime objective of the public policy. In India, banking industry has shown tremendous growth in volume and complexity during a last few decades. Despite making sufficient improvements in all the areas relating to financial viability, profitability and competitiveness, there are concerns that banks have not been able to reach the vast portion of the population. Especially the underlying sections of the rural areas, into the reach of banking services. Globally there are many efforts made to study and know the causes of financial inclusion and design strategies to ensure financial inclusion of the poor and the needy. The reason for this may vary depending upon the various regions and also the strategy but total efforts are needed for the financial inclusion as it can really lift the standard of living of the poor and the needy. In the Mid Term Review of the policy(2005-2006), RBI exhorted the banks with a view to have better financial inclusion, to make the availability of No Frills account either with zero balance or very low minimum balances as well as low charges that would make such accounts available to the vast section of the population. The nature of the account and the number of transaction in such accounts would be restricted and
Key words- Branchless Banking, Financial inclusion, globalization and Service.
The self service concept in the modern business is considerable recognition these days. It plays a vital role in reducing costs to an organization by facilitating automated interface between service provider and a customer. The term financial inclusion is offering of services at a lower cost to major sections of the rural people. Open access to public goods and services is a main thing of an open and efficient society. As banking services is in the nature of public goods, it is essential that availability of banking services to the entire population without discrimination is the prime objective of the public policy. In India, banking industry has shown tremendous growth in volume and complexity during a last few decades. Despite making sufficient improvements in all the areas relating to financial viability, profitability and competitiveness, there are concerns that banks have not been able to reach the vast portion of the population. Especially the underlying sections of the rural areas, into the reach of banking services. Globally there are many efforts made to study and know the causes of financial inclusion and design strategies to ensure financial inclusion of the poor and the needy. The reason for this may vary depending upon the various regions and also the strategy but total efforts are needed for the financial inclusion as it can really lift the standard of living of the poor and the needy. In the Mid Term Review of the policy(2005-2006), RBI exhorted the banks with a view to have better financial inclusion, to make the availability of No Frills account either with zero balance or very low minimum balances as well as low charges that would make such accounts available to the vast section of the population. The nature of the account and the number of transaction in such accounts would be restricted and