Kiosk Banking Business

Please Note: Banks related to Kiosk Banking are not a Paisabazaar partner. Offers would be from partner banks/NBFCs only.

 

To earn profits, it is not always necessary for business to be located in the city’s commercial hub or in the heart of any flourishing market. Business can be started from remote areas, inaccessible villages or from far-flung places throughout India. A unique idea can take business to new heights like starting a Kiosk banking business. Yes, it is truly a unique business idea that can also become a regular source of income for people living in remote areas or villages that are far from towns and cities.

Kiosk Banking

Introduced by the Reserve Bank of India (RBI), Kiosk Banking is an initiative by several banks to offer primary banking services to Low-Income Group (LIG) families or people at low or affordable costs. Kiosk Banking is a service introduced by financial institutions wherein customers can undertake banking transactions without visiting the bank branch.

Purpose of Kiosk Banking Business

This banking feature was launched to help and benefit the poor or unbanked section of society and individuals who are unable to maintain the minimum balance in their bank accounts. Moreover, for people who do not have banking facilities in their villages and cannot travel long distances to avail banking services. With the help of a Kiosk banking service, customers can undertake various banking activities, such as money transfer, account opening, cash withdrawal, remittances, and cash deposit; apart from micro lending and insurance.

Eligibility to start Kiosk Banking Business

• Individuals, shopkeepers, retailers, small business owners can start Kiosk Banking Business
• Age Criteria: Applicant should be minimum 18 years of age
• Educational Qualifications: At least XII passed
• Required space: Area of 100-200 Sq. ft.
• Availability of computer, printer and Internet services
• Shop owners already managing Customer Service Point (CSP) can start Kiosk Banking business
• Business entity should be a registered MSME under Ministry of Micro Small and Medium Enterprises (MoMSME)

Respective bank shall provide the Kiosk Banking business owner with a machine that shall help in taking the fingerprints of new applicants. Bank shall also provide related software to be installed in the computer for customer’s registration purposes. Bank shall set commission-based profits for business owner starting Kiosk business in any particular area approved by the bank.

Features of Kiosk Banking System

• ‘No-Frills Account’ through Kiosk banking system, as there is no minimum balance required to manage savings account
• Maximum balance can be maintained up to Rs. 50,000 (Amount above Rs. 50,000 can be maintained but the account will be converted into regular bank account
• Maximum transaction limit is Rs. 10,000 per day (Cheque books are not issued)
• Only cash transactions are allowed and only by the account holder
• Signature is not required; only electronic thumb impression is used to access the savings account
• Accidental Insurance: Kiosk banking system provides accidental coverage of Rs. 10,000 to its customers
• Options of opening Recurring Deposit (RD) and Fixed Deposit (FD) account, as well

Benefits of Kiosk Banking System

• Easily approachable: Kiosk machines or Customer Service Point (CSP) are located nearby to customer’s residence for them to reach out at their ease
• No queues: Kiosk machines are installed as small booths or in shops, so there are no queues
• Cheque drop facility made easier for banks
• Customers can perform NEFT and RTGS transactions
• KYC documents and process is lowered down or simplified in case of Kiosk banking
• Net banking or Internet banking feature added to Kiosk banking for online transactions
• Transaction charges: The charges applied on banking transactions are almost NIL or nominal
• Working hours of Kiosk machines extends up to shop timings or upon the location of the retail outlet
• Cash deposits can be made anywhere without spending money on travel
• Helped as a source of income for shop owners and retailers, as they used to get Kiosk machines installed in their shops or outlets
• Shop owners can earn commission on every cash withdrawal or deposit transactions, opening new accounts, money transfer, etc.

Functioning of Kiosk Banking Outlet or Customer Service Point (CSP)

• Customer’s ‘No-Frills Account’ is opened by taking their necessary details, fingerprints and photographs by Kiosk banking outlet.
• The documents gathered by Kiosk outlets are further sent to partner bank for further processes
• KYC check is performed by the affiliated bank branch
• Once the KYC check is successfully performed and approved, then only customers can operate his/her savings account and enjoy banking services at the nearest kiosk outlet

Components of Kiosk Banking Machines

• Barcode Scanner
• Cash Acceptor
• Integrated Full-Page Thermal Printer
• Integrated Speaker
• Keyboard with Trackball
• Touch and Non-Touch Display
• Video Camera

Documents Required for Loan Application

• Duly filled application form obtained from desired bank with 2 Passport-sized photographs
• KYC Documents of the applicant, such as Passport, Applicant’s PAN card, Voter’s ID card, Driving License, Aadhar card, Utility Bills (Water and Electricity Bills)
• Shop’s Address Proof
• Ration Card
• Last 12 months’ bank statement
• Any other document required by the lender

 

To start a Kiosk Banking Business, interested applicants can avail business loans from various financial institutions like banks, Small Finance Banks, Micro Finance Institutions and NBFCs. Applicants can also take funding support from various Government initiated loan schemes, such as Mudra loan under Pradhan Mantri Mudra Yojana (PMMY), Pradhan Mantri Employment Generation Program (PMEGP), Start-up India, Stand-up India Scheme, Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), loan in 59 minutes, etc.