I had a lot of questions – what exactly is Kiosk Banking, and what is it used for? I also wanted to know how SBI Kiosk Banking works, who is it for, and what are its benefits. I was very confused, but when I learned more about it, I realized that it is a very good facility, which is specially made for people in villages and remote areas. Today I will tell you in detail about SBI Kiosk Banking – its meaning, purpose, benefits, and other important things. So, let’s find out!
What is Kiosk Banking?
Kiosk Banking is a special facility launched by the Reserve Bank of India (RBI), which aims to provide banking services to people who cannot reach bank branches. The word ‘kiosk’ comes from the Norwegian language – Kommunikasjon Integrett Offentlig Service Kontor, which means a small place or booth where people get services. Kiosk banking is a small booth or place in a shop, where you can get banking services without having to go to a bank branch – such as depositing money, withdrawing money, checking account balance, and transferring money.
SBI Kiosk Banking is a service launched by the State Bank of India (SBI), where SBI’s Customer Service Points (CSPs) provide banking services to people in villages or remote areas. I came across such a kiosk booth in a shop in my village, and the shopkeeper there told me that he is an authorized agent of SBI, and people can withdraw or deposit money from their accounts from his shop. I found it very convenient, because people in villages no longer need to go to the city for banking.
Link to SBI Kiosk Banking : kiosk.bank.sbi
What is the purpose of kiosk banking?
The main objective of kiosk banking is financial inclusion – that is, every Indian should have access to banking services, regardless of where they live. There are still many villages and remote areas in India where there are no bank branches, and people have to travel long distances to access banking services. In my village, the bank branch is 20 kilometers away, and people have to spend a lot of time and money to get there. Kiosk banking eliminates this problem, as banking services are now available in the village itself.
The RBI and the Government of India launched this facility in 2011, and banks like SBI responded very well to it. The objectives of kiosk banking are:
- Helping Low-Income Groups (LIG): Opening zero-balance accounts for people who are unable to maintain a minimum balance in a bank.
- Convenient services: People in villages should get banking services near them, so that they do not have to travel far.
- Promotion of Digital Banking: Kiosk banking helps villagers learn digital banking and start using online transactions.
- Commission-based business: Kiosk banking provides commission to shopkeepers and small businessmen in the village, which increases their income.
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How does SBI Kiosk Banking work?
SBI Kiosk Banking works on two main parts – Customer Service Point (CSP) and Kiosk Machine. I came to know about this by visiting a CSP in my village, and the shopkeeper there explained everything to me very well.
- Customer Service Point (CSP): This is a counter, which is located in a kiosk booth or shop. Here you can ask any complaint or query regarding your bank account. For example, if you want to withdraw money from your account, you can tell the agent at the CSP, and he will help you.
- Kiosk Machine: This is a small machine, which has all the banking facilities. This machine has a thermal scanner, barcode scanner, cash acceptor, keyboard, and touch display. You can deposit money, withdraw money, check your account balance, and print a passbook here. I really liked that this machine is biometric – meaning you don’t need to sign, you can just swipe your thumb to make transactions.
All transactions in SBI Kiosk Banking are biometrically secured, and you get a printed receipt after every transaction. An old man in my village told me that he couldn’t sign, but the kiosk machine made it very easy for him to withdraw his money, because everything was done with just his thumb.
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Advantages of SBI Kiosk Banking
There are many advantages of SBI Kiosk Banking, which I found very important. Let’s look at some of the key benefits:
- Zero-balance account: With kiosk banking, you can open a ‘no-frills account’ where you don’t have to maintain a minimum balance. Many people in my village couldn’t afford to maintain a minimum balance, but now they can open a bank account thanks to kiosks.
- Convenient service: The kiosk booth is located in your village or at a nearby shop, so you don’t have to go far to the bank. People in my village can now withdraw or deposit money right there.
- Biometric transactions: You don’t have to sign, you can make transactions just by putting your thumb. I like this a lot, because many people in my village cannot sign, and this facility is very convenient for them.
- Commission-based income: With kiosk banking, shopkeepers get a commission. A shopkeeper in my village said that he gets a commission on every transaction – like depositing money, withdrawing money, or opening a new account. Opening a new account – earns commission. This has increased his income.
- Multiple services: You can get many services from the kiosk like depositing and withdrawing money, checking balance, transferring money, and printing passbooks. Apart from this, you can also open recurring deposits (RD) and fixed deposits (FD).
- Account limits: You can keep a maximum of Rs 50,000 in a kiosk account, and can do a maximum transaction of Rs 10,000 in a day. If your balance exceeds Rs 50,000, your account is converted to a regular account.
- Insurance: Some kiosk accounts come with an accidental insurance cover of Rs 10,000, which I found very good.
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SBI Kiosk Banking for?
SBI Kiosk Banking is especially for the following people:
- People from rural and remote areas: This facility is very beneficial for the people who do not have bank branches.
- Low-Income Groups (LIG): There is a facility to open a zero-balance account for those who are not able to maintain a minimum balance.
- Those who cannot sign: This facility is convenient for those who cannot sign due to biometric transactions.
How to open SBI Kiosk Banking?
Opening an account through SBI Kiosk Banking is very easy. A shopkeeper in my village told me these steps:
Step 1: Visit the nearest CSP
Go to the nearest SBI Kiosk booth in your village or there. There you will meet an agent, who will help you open an account.
Step 2: Provide KYC documents
You will need to provide ID proof like your Aadhar card, voter ID, or driving license and address proof. An old lady in my village opened her account by just providing her Aadhar card.
Step 3: Biometric verification
Your KYC verification will be done by taking your thumbprint. It is all online and fast.
Step 4: Activate account
Once KYC is completed, your account will be activated, and you can start transacting immediately. An uncle in my village took just 2 days to open his account.
Some Disadvantages of SBI Kiosk Banking
SBI Kiosk Banking has many advantages, but there are also some disadvantages that you should be aware of:
- Limited transactions: You can only transact Rs 10,000 in a day, and you can keep a maximum of Rs 50,000 in the account. One of my friends wanted to transfer more money, but he had to visit the bank branch for that.
- Internet connectivity: Internet connectivity is not good in some villages, so the kiosk machines sometimes do not work.
- Security concerns: Some people feel that it is not safe to deposit or withdraw money at a kiosk booth, but I think it is very safe due to biometric security.
Some important tips
- Check the credibility of the kiosk agent: Check if the kiosk where you are opening an account is an authorized CSP of SBI. The shopkeeper in my village had an official certificate from SBI, so I felt confident.
- Keep transaction receipts: You get a receipt after every transaction, keep it properly, so that if any problem arises in the future, you have proof.
- Check internet connection: Check if the internet connection is good in the kiosk, otherwise your transaction may get stuck.
SBI Kiosk Banking is a very good facility, which makes banking easy for people in villages and remote areas. I find this facility very beneficial, because with this, people in villages can now avail banking services, and they do not have to go far. Moreover, the kiosk agents get commission, which increases their income. If you live in a village, and you want banking services, then SBI Kiosk Banking is a good option. If you have any more questions, be sure to ask me. I will explain it to you in simple terms! Open your SBI Kiosk account now and make banking easy!
FAQ for SBI Kiosk Banking:
1. What is SBI Kiosk Banking?
SBI Kiosk Banking is a service where Customer Service Points (CSPs) offer banking facilities like deposits, withdrawals, and balance checks in rural areas via small kiosks.
2. Who can benefit from SBI Kiosk Banking?
It’s ideal for rural and remote area residents, low-income groups, and those unable to sign, offering zero-balance accounts and biometric transactions for easy banking access.
3. What services does SBI Kiosk Banking provide?
SBI Kiosk Banking offers deposits, withdrawals, balance checks, fund transfers, passbook printing, and opening RD/FD accounts, all through biometric-enabled kiosks.
4. How do I open an SBI Kiosk Banking account?
Visit a nearby SBI CSP, provide KYC documents like Aadhaar or voter ID, complete biometric verification, and your zero-balance account will be activated within days.
5. What are the limitations of SBI Kiosk Banking?
You can hold up to ₹50,000 in the account and transact ₹10,000 daily. Internet issues in rural areas and security concerns at kiosks can also be challenges.