Branchless Banking to all Villages by 2015

RBI has planned to reach to all the corners of India and give them the chance of branch-less banking. Even after 40 years of nationalization of banks over 50 per cent of the population is deprived of the banking services. The RBI deputy manager Mr KC Chakraborty today declared that by 2015 all the villages will be having access to the banks by branch-less banking.

Due to poor network and technology problem, RBI has planned to issue biometric smart cards to the rural people. The lead banks will issue their respective smart cards in the respective locations. By 2012 RBI has target to reach to those villages where the population is above 20000. And by 2015 the rest will be covered. You must be thing will providing a smart card to them will solve their problem? How will get the advantage? The bank representatives will visit these villages twice or thrice a month with the swap machines and cash.

Although Union Bank Of India  has already started issuing smart cards and plans to cover the people of the Naugarh block of Chandauli district, on priority basis within three months. They are issuing these cards to all people irrespective if they are illiterate. These cards look like any debit / credit card and the finger print of the card holder acts at the bio password. The card has a unique feature of storing all the transactions been made.

This plan looks similar to what SBI is doing with their Phone Banking without an Account schemee and why Government is allowing 2 similar schemes in one place. Moreover it is not sure weather this plan only includes Nationalized Banks.

The plan is yet to get complete actually. How does RBI plan to reach to theses villages and educating them with the proper knowledge of banking services? Will the swap machine only suffice the purpose? How does RBI plan to issue the smart cards? Although it’s a good attempt taken by the RBI for these rural people but we really need to know a detail plan.

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About Nidhi Paul

Who wants to bring Indian culture, Food, and her thoughts together to give the best India has and what we can learn from Indians and Indian aspects.