Mangalore: Corporation Bank is planning to use the ‘branchless banking’ model to bring more villages under financial inclusion in un-banked areas.
The bank, which has implemented this model in two villages in Dakshina Kannada district on a pilot basis, is planning to implement this operating model in 200 villages in the country in the next 12 months.
Releasing the profile of the Corporation Bank Chair in Bank Management at Mangalore University here on Friday, B. Sambamurthy, Chairman and Managing Director, said that there is a need to find an operating model for the financial inclusion. Execution is the major challenge in achieving the financial inclusion.
“Our team at Corporation Bank has taken a lead in coming out with a new operating model of branchless banking,” he said.
Opportunity for villagers
Under this model, the bank dispenses various products to the villagers at an affordable cost. Terming it as an opportunity for villagers, he said such a model needs to be replicated as fast as possible. The ‘branchless banking’ model will be implemented in around 200 villages in the next 12 months, he said.
The bank has implemented the model at Paranki and Soorinje villages in Dakshina Kannada district. Under this, the business correspondents in those villages conduct transactions on behalf of the bank with the help of technology.
The customers have been issued smart cards for making transactions, and the business correspondent has been given the hand-held terminal to carry out the transaction.
The terminal of the business correspondent and the smart card of the customer are connected with the bank through telephone network.
Dr C. Rangarajan, Chairman of the Economic Advisory Council to the Prime Minister, has inspected the ‘branchless banking’ model in these villages, Sambamurthy said