Kiosk Banking: Meaning, Functionality & Benefits – RBI’s Low-Income Group Initiative for (LIG) Families

Last Updated : May 23, 2023, 4:08 p.m.

Kiosk meaning Kiosk Banking, is an initiative by RBI or the Reserve Bank of India to provide banking services to low-income group (LIG) families or people at low cost. Several banks provide it to take banking services without visiting the bank branch.

It stands for Kommunikasjon Integrert Offentlig Service Kontor, representing a small cubical space where banking services are offered to all the customers coming from the most remote areas.

To ensure that everyone, particularly those in rural India, can access banking services, the Reserve Bank of India has established Kiosk meaning Kiosk Banking services, in areas with limited network connectivity and a lack of physical branches.

Highlights of Kiosk Banking

Below listed are the key highlights of Kiosk Banking.

• People can easily open a new account, make cash deposits, cash withdrawals, money transfers, etc. It even acts as an informative place to learn about new government schemes.
• Services like opening a ‘No-Frill’ bank account, which helps the poor community to get access to banking benefits. Therefore, the account holder does not have to worry about maintaining a minimum balance.
• Kiosk meaning Kiosk Banking, act as ATMs in rural areas for cash withdrawal and cash deposit because operating an ATM in such locations is difficult.

Kiosk Banking Business

RBI, along with the Indian Government, is making a tremendous effort to provide banking facilities such as account opening, money transfers, cash deposits, cash withdrawals, and remittances to all individuals. Therefore, to make this a great success, online Kiosk meaning Kiosk Banking, becomes an ideal business. The owner of the Kiosk gets all the related software from the respective banks and charges a commission from the bank for every transaction. The Higher the transaction, the higher the commission received.

Eligibility for Kiosk Banking Business

Kiosk Banking Business has the following eligibility criteria.

• Any individual entities such as retailers, small business owners, and shopkeepers are eligible for Kiosk meaning Kiosk Banking.
• A candidate should be a minimum of 18 years old.
• Educational qualification should be at least 12th passed.
• A candidate should have a legally issued 100-200 sq ft area.
• A candidate should have a computer, printer, and an internet connection.
• A business should be registered as a Micro, Small and Medium Enterprise (MSME) with the Ministry of Micro, Small and Medium Enterprises.

Features of Kiosk Banking System

Here are the notable features of the Kiosk Banking System!

• A Kiosk meaning a Kiosk Banking system, offers a ‘No Frills Account’, which does not require a minimum balance to maintain a savings account.
• Individuals can maintain a maximum balance of up to Rs. 50000. To maintain the above Rs. 50000, the account has to be converted to a regular bank account.
• The daily maximum transaction limit is Rs. 10000. Chequebooks are not issued.
• It enables its customer to carry out cash transactions only by the account holder.
• It provides access to saving accounts through electronic thumb impressions and not through signature.
• It covers accidental insurance of Rs 10000 to its customer
• It even provides Recurring Deposit (RD) and Fixed Deposit (FD) facilities to its customer.

Benefits of Kiosk Banking System

Kiosk Banking System comes with the following benefits.

• Kiosks machines or Customer Service Points are conveniently located closer to customers’ homes for easy access.
• Customers do not have to stand in a queue as it is operated in small shops or a booth.
• Customers can get NEFT and RTGS transactions done in Kiosk meaning Kiosk Banking.
• It provides easy access to online transactions through net banking and Internet banking.
• The best part is there are negligible charges or no charges involved in Kiosk meaning Kiosk Banking.
• The operating hours of the kiosk machine are determined by the shop’s opening and closing times.
• Cash deposits can be made to any nearby place without visiting the bank branches.
• It can become a source of income for the shop’s owners, as they earn commission from the bank in every new account opening, cash withdrawal, cash deposit, money transfer etc.

Purpose of Kiosk Banking Business

Kiosk meaning Kiosk Banking was launched to help individuals unable to meet the minimum balance requirements of traditional banking. It majorly focuses on the rural area, where the banking sector could not reach and due to less physical appearance, people get rid to avail the benefits of banking services. Kiosk meaning Kiosk Banking offers services such as money transfers, account openings, cash withdrawals, remittances, cash deposits,

Functioning of Kiosk Banking Business

Here’s how a Kiosk Banking Business functions!

• Accounts are being opened by taking the necessary details, fingerprints and photographs.
• The collected documents are then sent to the bank branch for further verification.
• After the successful verification, customers can access their saving accounts and take advantage of banking services at the nearest kiosk outlets.

How is Kiosk Different from an ATM?

Multiple features differentiate a Kiosk from an ATM.

• Kiosk banking came after ATM. Therefore, there exists a difference between the two-
• Kiosk provides account-related inquiries such as chequebook requests, mobile number updates, Aadhaar updates, and PAN card updates. ATMs provide no such facilities.
• Unlike an ATM, a Kiosk offers customer-related queries like customer support tools directly connecting to the bank branch.
• A Kiosk has CSP (Customer Service Points) where they can get assistance with any kind of baking-related query. ATMs do not allow the same.
• It offers net banking facilities to its user to do online transactions.
• Account holders get a cheque deposit facility, unlike ATMs.

Components of Kiosk Banking Machines

You will find the following components in Kiosk Banking Machines.

• Barcode scanner
• Printer
• Cash acceptor
• Integrate speaker
• Keyboard with trackball
• Touch and Non-Touch Display
• Video camera

Conclusion

With the launch of Kiosks, people living in remote areas and having no access to banking facilities can now easily open and maintain bank accounts. The financial burden of maintaining a minimum account balance is reduced as well.

FAQs