Exploring the Scope of Activities in SBI Kiosk Banking

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Business Correspondents (BCs) are instrumental retail agents acting on behalf of banks, extending banking services beyond branches/ATMs. With a focus on affordability, BCs support banks in delivering a limited range of services, driving financial inclusion. RBI mandates All Bank CSP BCs to offer products like Small Savings Accounts, Fixed Deposits, Recurring Deposits, Remittances, Micro Credit, and General Insurance. This model facilitates doorstep transactions, particularly vital in rural areas, bridging the last-mile gap.

The Scope of Activities performed by Bank CSP business correspondents in SBI Kiosk Banking

SBI Bank CSP BC refers to the role of a Business Correspondent (BC) in the State Bank of India (SBI) under the CSP (Customer Service Point) framework. SBI BCs are instrumental in realizing the goal of financial inclusion by providing an array of banking services to individuals who reside in remote and underserved areas.

Through collaboration with SBI Kiosk Banking, BCs offer a limited yet essential range of financial services, ensuring that even the marginalized sections of society can access banking facilities. The scope of activities undertaken by SBI Bank Business Correspondents is both diverse and impactful.

Customer Identification and Product Awareness: BCs play a pivotal role in identifying potential customers and raising awareness about various bank products, promoting savings. They also offer crucial financial advice and debt counseling services.

Processing Deposits and Applications: BCs undertake the collection and initial processing of deposit forms, ensuring accuracy and completeness. They verify primary information, complete application forms, including nomination details, and forward them to the bank.

•    KYC Compliance and Account Opening: BCs facilitate the Know Your Customer (KYC) process, enabling seamless customer onboarding. BCs are proficient in opening no-frill deposit accounts and elucidating the diverse products offered by the bank.
•    Account Information and Cross-Selling: BCs provide customers with account information, including mini statements. Additionally, they engage in cross-selling banks' financial products.
•    Execution of Routine Banking Activities:All Bank CSP conducts various banking activities outside traditional branches, ensuring smooth banking operations. These activities are approved by the bank but are performed at locations other than the bank's premises.
•    Handling Small Value Transactions: BCs manage the collection and payment of small-value deposits and withdrawals, with a maximum cap per transaction, contributing to the ease of financial transactions.
•    Efficient Remittance Services: BCs offer efficient remittance services for small-value transactions, enabling secure and convenient fund transfers.
•    Authoritative Cash Handling: Authorized by the bank, BCs are empowered to accept or deliver cash within prescribed limits, either at kiosks, workplaces, or suitable locations.
•    Reputational Risk Management: BCs also shoulder the responsibility of managing reputational risks associated with duly appointed sub-agents, maintaining the bank's image.

Conclusion

Business Correspondents stand as the bridge between banking services and underserved populations. Their multifaceted role encompasses customer awareness, application processing, KYC compliance, transaction handling, and risk management. The collaboration between SBI Kiosk Banking and BCs has revolutionized banking access, ensuring financial services reach the farthest corners of the country. This integrated approach not only facilitates essential transactions but also fosters financial literacy and inclusion, bolstering the nation's economic growth.