Role Of Banking Customer Service Point CSPs For Financial Inclusion In Rural India A Case Study Of Dhanbad District

Abstract

Financial inclusion is compulsory for rural and remote rural backward farmers which are the forthcoming growth engine of the rural as well as Indian economy. Huge numbers of BSBD Accounts were opened through banks but, maintenance and dormant are the extreme issue of such accounts. The rural people s capability to transact on the newly opened bank accounts was severely limited on account of physical and psychological barrier between the rural people and bank branches. newlineThe Banking CSPs procedure, as projected by RBI was expected to provide a rural and remote rural people convenient point of transaction in his/her area. A decade back RBI launched the concept Banking CSPs to enable banks to extend their network beyond their branches. Banking CSPs provide a point of existence to potential rural people nearer to their residence. The MFIs and Banking CSPs are considered as most dependable modes of delivering financial services. newlineThe banking CSPs offers a lower cost channel at local existence. However, it is restricted by poor confidentiality. Supplementing the banking CSPs with technology can improve confidentiality, speed up in banking transactions and extend the area of operation that banking CSPs can cover. The Banking CSPs who helps to improve in their standard of living through act as banker by way of delivering all kind of banking services at a reasonable cost to the very much required rural and remote people. The financial inclusion goal can be attained by delivery of short term formal financial services by any way. But to accomplish continuous financial inclusion and inclusive growth to them the financial literacy is very much required. newlineThe SSA coverage in Dhanbad through branches is only 4 while 242 SSA coverage through the banking CSPs. In percentages only 2 percent SSA covered by the branches as on 30th June 2021 while 98 percent SSA covered through banking CSPs. In Jharkhand also no different picture is seen on the contrary. Therefore the role of banking CSPs are vital in this perspective.