The Reserve Bank of India defines financial inclusion as the process of ensuring access to financial services. It includes timely and adequate credit where needed by vulnerable groups such as weaker sections and low-income groups at an affordable cost. In the center point of financial inclusion, KIOSK banking is an important concept and basically developed for rural areas of the country where less number of banks are and people can’t reach to the bank to avail their services.

The idea behind the kiosk banking is that it should be supported by the banks in private, public and cooperative sectors through the use of shops. These acts as a touchpoint between a bank and the customer where the banking services such as deposits, withdrawals, remittances apart from the micro-credit, insurance, and overdraft services could be delivered.

Benefits of Kiosk Banking Kiosk banking solution is advantageous to both, the owner of a Customer Service Point (CSP) as well as the customer.
Following elaboration, justifies this statement:

Following are some of the benefits that kiosk banking providers to the CSP owners :-

1. Self-Employment Opportunity – Kiosk banking makes small retailers and other CSP owners independent by offering them an opportunity for growth.
2. Walk-in Customers-Being located in busy streets or densely populated remote areas, the kiosk banking service provider gets substantial walk-in customers.
3. Performance-Based Incentives: The CSPs earn high incentives provided that they perform equally well.
4. Fair Remuneration: The remuneration received by the CSPs is good enough.

To Customers :-

1. Easy Accessibility-Kiosk banking helps customers with easy accessibility and approachability to the essential banking services without even going to the bank where they hold an account.
2. Nearby Location: CSP or kiosk machines are located nearby to the customer’s residence to make sure it is convenient for the customer to reach there.
3. No need to stand in Queues: Since it is located in a shop or a small booth, there are no queues.
4. Zero Balance Account: The customer need not maintain any minimum balance in a no-frills account.
5. Extended Banking Hours: The banking hours offered by a CSP or a kiosk machine extends to the timing of the shop or retail outlet where it is located.
6. Minimal Charges: The charges applied on transactions is almost nil.