16th April 2010
Srinagar
J&K Bank Khidmat Centres to provide basic banking facilities.
J&K Bank branch network got a big boost when Reserve Bank of India (RBI) in its unique decision permitted J&K Bank to utilize the services of common service centres (CSCs), named as Khidmat Centres, as it's Business Correspondents (BC) across the state. The Bank received a communiqué from RBI in this regard a few days back.
Under the Business Correspondent model banking, all basic banking services offered by J&K Bank would be available to the customers at Khidmat Centres.
The move is seen as an exceptionally encouraging gesture towards J&K Bank's reaching out to all mission as over 1100 more branches would be added to the already existing almost 600 business units across the country. Notably, these Khidmat centres, out of which over 300 have already been established would be exclusively established in J&K state particularly in remote areas under the National e-Governance project. This would further scale up the efforts of financial inclusion.
"It is an alternative delivery mechanism for financial services which leverages the strength of the existing formal financial channels even as it retains the reach and method of informal finance," said Dr Haseeb A Drabu, chairman and CEO of the bank. RBI, he said, acknowledged the low level of financial intermediation and provided an opportunity that will help in 100 percent financial inclusion.
Notably, J&K Bank is the only financial institution in the country to implement the National e-governance project of Government of India. Given the intent of central government to merge and implement all the rural development schemes through these Common Service Centres, their number is expected to surge to 4300 by 2013.
The scheme fits in the planning of Dr Drabu who in last five years has been creating a new financial architecture of the state. "In next three to five years we are looking at a scenario in which you will have core banking of the state with the JKB and all other financial services with its subsidiary J&K Bank Financial Services Ltd," said Drabu. These will include CSC as well. Bank has already purchased a one percent stake in the National e-governance Company.
Notably, the bank named the CSCs as Khidmat Centres and branded the stores in such a way that they look same everywhere. It sought applications from aspiring entrepreneurs and got the best of the lot at village level. Selected lot got the design about the kiosk and all the equipments were purchased in bulk thus reducing basic costs. Every unit cost Rs 1.75 lakhs and the entrepreneur had to pay ten percent with 90 percent coming as loan at eight percent payable in six years with moratorium for six months on principal and interest.
These CSCs shall become viable agencies for public empowerment at grass-root level. These would help the bank to deliver core banking services to the people at their door-step while bringing more and more public spaces within the fold of formal financial channels.
Besides, these centres create employment at grass-root level and throw opportunities for youth, particularly from rural areas.
Under the Business Correspondent model banking, all basic banking services offered by J&K Bank would be available to the customers at Khidmat Centres.
The move is seen as an exceptionally encouraging gesture towards J&K Bank's reaching out to all mission as over 1100 more branches would be added to the already existing almost 600 business units across the country. Notably, these Khidmat centres, out of which over 300 have already been established would be exclusively established in J&K state particularly in remote areas under the National e-Governance project. This would further scale up the efforts of financial inclusion.
"It is an alternative delivery mechanism for financial services which leverages the strength of the existing formal financial channels even as it retains the reach and method of informal finance," said Dr Haseeb A Drabu, chairman and CEO of the bank. RBI, he said, acknowledged the low level of financial intermediation and provided an opportunity that will help in 100 percent financial inclusion.
Notably, J&K Bank is the only financial institution in the country to implement the National e-governance project of Government of India. Given the intent of central government to merge and implement all the rural development schemes through these Common Service Centres, their number is expected to surge to 4300 by 2013.
The scheme fits in the planning of Dr Drabu who in last five years has been creating a new financial architecture of the state. "In next three to five years we are looking at a scenario in which you will have core banking of the state with the JKB and all other financial services with its subsidiary J&K Bank Financial Services Ltd," said Drabu. These will include CSC as well. Bank has already purchased a one percent stake in the National e-governance Company.
Notably, the bank named the CSCs as Khidmat Centres and branded the stores in such a way that they look same everywhere. It sought applications from aspiring entrepreneurs and got the best of the lot at village level. Selected lot got the design about the kiosk and all the equipments were purchased in bulk thus reducing basic costs. Every unit cost Rs 1.75 lakhs and the entrepreneur had to pay ten percent with 90 percent coming as loan at eight percent payable in six years with moratorium for six months on principal and interest.
These CSCs shall become viable agencies for public empowerment at grass-root level. These would help the bank to deliver core banking services to the people at their door-step while bringing more and more public spaces within the fold of formal financial channels.
Besides, these centres create employment at grass-root level and throw opportunities for youth, particularly from rural areas.