PNB in coordination with RBI opens biometric ATM for financial inclusion

The Reserve Bank of India (RBI) has been promoting financial inclusion in unbanked areas and has also been pushing the banks to offer banking facilities in these areas. In view of this RBI is planning to issue new guidelines on the business correspondent (BC) model so that banking services can be spread across more remote areas.

H R Khan, executive director, RBI, said at function organized at Ranikhera village, a rural area near New Delhi, “We are working on a fresh set of guidelines for the business correspondents’ model that would help in greater financial inclusion. At present, the model is too restrictive and we are constantly examining the correspondent model to make it more operative”. Khan was speaking at a function organized to commence banking facilities in the unbanked area.

Punjab National Bank, in coordination with RBI has opened a biometric ATM at Ranikhera village in order to provide banking facilities in the area. The biometric facility will make easy for people to operate ATM. The ATM will operate with the help of physical identification such as impression of finger or the palm.

Several other banks such as Syndicate Bank, State Bank of India, Oriental Bank of Commerce will be opening many such ATM branches.

Khan added, “PSU banks can set up an international benchmark with its strong technology with a focused approach to expand access to finance for the common man staying in unbanked areas.”

This ATM counter will cover four villages and approximately 300,000 villagers will be able to use this facility.

Nagesh Pydah, executive director, Punjab National Bank said, “There is an immense potential in the far-flung areas of our country. Around 65 per cent of India doesn’t have a bank account. Therefore, our approach is always to work towards the financial inclusion and provide knowledge of banking in those areas.”

BCs model is an intermediary facility through which banking transaction is possible using the formal banking system in villages or in areas where it is not possible for the people to reach a bank branch. BCs include entities such as kirana shop owners, public call office operators and retired teachers, among others.

BCs are intermediaries who facilitate banking transactions with the formal banking system in villages or in areas where it is not possible for the people to reach a bank branch. BCs include entities such as kirana shop owners, public call office operators and retired teachers, among others.

Speaking on the occasion, Sandip Ghose, regional director, Reserve Bank of India, said the central bank is working to improve financial literacy among the people.

Ghose added, “We are adopting a cluster approach by setting up a platform that will cater to the underprivileged in a cluster of villages. We are also trying to increase the level of financial literacy among them.”