Inclusivity takes banking to the masses

Borrowing a leaf from the PM’s Jan Dhan Yojana, the financial inclusion initiative, banking and financial institutions across India have revamped their infrastructure to take their services to every home in every village and small town in the nation. Inclusive banking, as the catchphrase goes, has now become the mantra of the hour.

Take for instance banks that offer inclusive banking services, powered by SMS. The facility allows users to conduct basic banking transactions, small-value fund transfers and phone and DTH recharges as well. One of the biggest advantages of facilities such as these offered by banks is that a basic mobile connection is all it takes to transact on their platforms. So it comes in handy for customers of these banks who live in rural areas of the nation, that are yet to receive full-fledged internet connectivity. Kotak bank has an app for inclusive banking called the Bharat Banking App. 

Another advantage of such apps is that one doesn’t need to be conversant in English alone to conduct financial transactions using their cell phone. Supported by regional languages such as Hindi, Gujarati, Marathi, Kannada, Tamil and more, customers can confidently go about using banking services like any urban customer in a hassle-free and user-friendly manner. Some banks allow their customers to use the banking app to apply for savings and life insurance schemes like the Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY). A move towards total digitisation in all pockets across the nation could result in billions of rupees being saved. 

If you were under the notion that inclusive banking was just limited to the average customer looking for the most basic of B2C (business-to-customer) services, look closer. 

Major private players in the country’s banking sector have come up with initiatives aimed at addressing a variety of end users, specifically the business communities in rural areas. Apart from this, banks also service clients through term loan facilities that can be used for enhancing the existing capacity or expanding working units or even construction of warehouses, among others. Many other private banks have come up with schemes that offer financial assistance to large agricultural and rural enterprises for their working capital needs. Financial assistance is also given to rural entrepreneurs in the form of overdraft based on property and income.