Banking and its ancillary activities have been an integral component of one's daily routine. The banks handle all from monitoring balances to cashing cheques. Banking companies have also chosen technologies like ATMs in this era of inventing solutions that simplify human life. The availability of ATMs has streamlined procedures such as the transfer of funds and money withdrawal. Because of this, it has received acceptance among ordinary working people who can obtain cash quickly and easily. However, these resources have long been out of range for the poor and minorities of the community. This sector primarily consists of daily wage workers who cannot access banking institutes for basic services. By establishing the well-known kiosk banking method, the RBI successfully closed this gap.
Did you know?
The Full Form of KIOSK is Kommunikasjon Integrert Offentlig Service Kontor.
What Are Some Kiosk Types?
There are mainly 5 types of Kiosks. They are:
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Information Kiosk
An information kiosk is a non-interactive or interactive kiosk that displays information or gives it through a menu system. The information kiosks offered at your local library, for example, provide an active catalogue of their holdings. Another example would be the kiosks found in malls and stores that exhibit popular items in their inventory.
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Interactive Kiosk
Customers can interact with interactive kiosks, which are not static. Retailers, restaurants, service firms, and tourist locations such as malls and airports all use interactive kiosks. Customers can use interactive kiosks for directions and navigation, self-service ordering or check-in, making purchases, or even getting online.
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Wayfinding Kiosk
A wayfinding kiosk's goal is to assist users in determining where they are and how to get to their target location. This might be accomplished by displaying a simple 2D map with the current location highlighted. Different floors are represented by different colours in this modelling approach.
Also Read: What is Net Banking? Benefits & Features of Online Banking
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Temperature Kiosk
A temperature kiosk uses an infrared camera to scan the user and record their temperature. The kiosk will notify the user if the temperature is too high. Some temperature scanners can be linked to door access, allowing you to refuse entry to anyone who registers a high temperature. Temperature screening, according to the WHO, should be included in a package of COVID-19 prevention and control measures in the workplace. Preventing possibly sick individuals from entering your workplace gives an extra layer of disease protection. It might also help reassure your employees that they are returning to a safe working environment.
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Internet Kiosk
These kiosks, which are commonly located in public waiting areas or hotel reception areas, allow users to access the internet. The user will be able to browse the web for a price at one of these terminals for a certain period of time. After that period has passed, the system will lock, and the user will have to pay an extra price to gain access again. These types of kiosks are vulnerable to cyber-attacks and hackers because they are connected to the internet. It's critical to make sure your internet kiosks are protected with antispyware and antivirus software. Any attempts to hijack your system or steal confidential user information will be detected by these.
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Self-Service Kiosks
A self-service kiosk is a device that allows customers to engage with businesses without having to wait for a staff. They can be used in a variety of situations, but frequent examples include purchasing rail tickets or dining at restaurants with a quick payment system. The goal is to reduce line sizes and speed up the payment procedure.
Kiosk Banking and Its Meaning
KIOSK is an acronym for Kommunikasjon Integrert Offentlig Service Kontor, and it refers to a compact open-fronted tent or booth. In regards to the bank, the design of the kiosk facility is to meet the financial requirement of low-income individuals by providing conventional financial services closer to their homes. People can use the kiosk to obtain banking services like cheque transfers, money transfers, balance inquiries, cash deposits, and remittances. One can do all these activities without visiting the bank. The low-income groups gain from this since they obtain all of the facilities without going to the banks. Because these people are incompetent at keeping a minimum balance in respective savings accounts, the kiosk allows people to do so without worry.
The Components of Kiosk Banking
In most cases, they place kiosks as booths inside any local stores or small outlets in the communities' surroundings. Clients will benefit from increased reach and availability.
The two important parts of the kiosk financial system are:
- Customer Service Point (CSP)
- Kiosk machine
Customer Service Point
This is a desk in the business that works in tandem with the kiosk cubicle to provide quick access to private or government banks. Users can access the Customer Service Point with any questions or concerns about payments or accounts operations, and the Customer Service Point will respond.
Kiosk Machine
The kiosk machines are the second part of the kiosk booths, and it enables users to make transactions and certain other activities like cheque deposits, status queries, etc. This machine has the below parts in it.
- Barcode scanner
- Touch and non-touch display
- Money acceptor
- Incorporated a full-page thermal copier
- Incorporated speakers
- Keyboard along with the trackball
- Video camera
Who Can Start a Kiosk Banking System?
Shop keepers, merchants, micro-enterprises and perhaps even individuals are eligible to apply to start a kiosk system.
The following are the requirements for kiosk banking:
- The age requirement is 18 years old.
- Academic Credentials: The applicant must have a senior secondary school assessment pass certificate.
- The kiosk cubicle requires at least 100-200 square feet for establishment.
- The candidate must guarantee that PCs and internet access are available.
Store owners or micro-enterprises people can combine a kiosk stall with a Customer Service Point, but the small company must have to register as an MSME. The financial institution must provide the necessary tools for constructing a kiosk, which contains a kiosk device, a device for inspecting fingerprints and applications interoperable with desktops.
The Procedure of Kiosk Banking
- The user will first create a no-frills account.
- After that, they will perform KYC authentication.
- The relevant institutions evaluate the provided documentation as part of the KYC authentication process.
- After completing the formalities, the person can freely access their accounts and conduct transactions.
The Documents Required
- Properly fill out the complete registration form for the respective bank.
- Aadhaar, the electorate's ID and driver's licence are examples of proof of identification.
- Evidence of the store establishment in which you will install the kiosk.
- Invoice for electricity or some other services.
- Ration document of the candidate.
- Two recent photos of the candidate.
The Features of Kiosk Banking
The task and design of the kiosk financial sector are easy because this design serves low-income groups. The following are the main characteristics of kiosk banking:
- Clients can open a no-frills profile with kiosk banking. The account holders of these bank accounts do not require maintaining a minimum value. Individuals have permission to open and manage a nil balance bank account. It's beneficial for everyday wage employees who receive payment daily.
- Clients who use kiosk banking can have their bank balances topped up to ₹50,000. If the user's entire balance surpasses this threshold, the user accounts will transform into conventional bank accounts.
- People have permission only to conduct transactions in currency.
- You can use thumbprints to conduct money transfers, and it is not compulsory to have the sign of an account holder. All this adds to the transaction's ease for minority groups.
- Kiosk banking additionally offers insurance benefits to account holders. The approval of such protection the account holder is given if they face any accident. The insurance coverage available is equal to ₹10,000.
- Users can use kiosk banking to create a Fixed Deposit or a Recurrent Deposit account to save or for investment.
The Benefits of Kiosk Banking
One of the primary goals of establishing the kiosk banking services was to serve the monetary demand for low-income individuals and offer individuals advantages such as:
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Feasibility
Kiosk banking does have the actual benefit of being handy and reachable to the most isolated towns throughout the nation. It contributes to expanding the financial institution network by allowing those operating in communities to obtain banking services. Individuals do not have to stand in line for hours to have whatever they want since the kiosk establishment is in the shape of cubicles in local stores.
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No Limits on Minimum Balance
The applicant can start a new bank account with no capital using the kiosk banking technology. A minimal available balance is not essential for using internet banking facilities. This is beneficial for low-income and least-wage workers because they can create and maintain a savings account without constantly worrying about the outstanding balance.
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NEFT and RTGS
People can also use kiosk banking to execute NEFT and RTGS activities quickly and easily without visiting a financial institution.
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Easier Banking Processes
Processes like Knowing Your Customer and documentation checking are faster and easier with kiosk banking.
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Internet Banking
Users can also use kiosk banking to access e-banking services and conduct electronic payments or activities with simplicity.
Also Read: Why is the RBI Called the Bank of Banks?
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User-Friendly Services
Kiosk banking offers additional hours, little or no processing fees and a thumb imprint for payments, contributing to more complete and enjoyable customer satisfaction.
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A Means for Business
Kiosk commercial bank has grown traction in recent years, with some small and independent enterprises using a kiosk-based approach. Kiosk cubicles turn into a company growth tool.
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Income Boost
The commission received from money deposit and removal, which each accountholder makes through a kiosk, provides the logic of economic boost to store owners or merchants that install kiosk terminals in their stores.
Kiosk vs ATM
After the invention of the ATM, there was an establishment of kiosk financing institutions. As a consequence, there are certain distinctions between the kiosk and ATMs, and we can explain them by the facilities supplied by kiosks, which include:
- Account inquiries, like chequebook demands, are available at kiosks, which aren't available at ATMs.
- Users can also use kiosks to access client support technologies that directly contact the institution's support centre.
- ATMs do not give MIS monitoring, whereas kiosks do.
- A further notable distinction between a kiosk and an Automated Teller Machine is that a kiosk enables the depositing of cheques.
- Digital banking is also available at kiosks, allowing users to make online payments.
- A CSP is also available at kiosks to help people.
Conclusion
The reduction of other documentation results in fewer hassles for both clients and banks while making transactions. Suppose the bank wants to provide the greatest facilities to its customers and the customers want to receive excellent service from a financial institution. In that case, both must consider "technological services" and use the kiosk banking channels. Customers should anticipate the mortgage procedure and lockers maintenance completed within the e-lounge.
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