Dr R C Lodha , Executive Director, Central Bank of India, in an interaction with Arpit Gupta of Elets News Network (ENN) , speaks about the various financial inclusion- related programmes initiated by the Bank and other steps taken by them to provide new-age banking to the customers
Give an overview of the financial inclusion- related initiatives of the Central Bank of India.
First financial inclusion programme in India was initiated by the Reserve Bank of India in 2005 with an aim to bring the financially-excluded population of the country within the ambit of regulated financial institutions. Our country has a huge population and more than 60 per cent of them live in villages. Since the launch of financial inclusion programme in 2005, lots of efforts have been made in this direction by the stakeholders. But numerous problems arose during the course of its implementation and passing on benefits to the ultimate beneficiaries. Had these hurdles not been taken care of properly, the ultimate aim of the programme to pass on the benefits to the poor could not have been achieved.
What are the new customer-friendly products/ services introduced by the Central Bank of India?
Only a third of India’s 1.2 billion people have bank accounts, whereas over double that number – some 900 million people own mobile phones. So, there’s an irony in that comparison. Today, bank customers look forward to facilities like:
- Queue-less banking
Quick and speedy banking and
So , in line with their expectations, our Bank is already providing all facilities through various platforms like:
- CBS branches
- Net Banking, which added a new feature of online ITR filing
- Mobile Banking, which has the feature of Aadhaar seeding and NEFT
- Micro ATM-equipped BC outlets that enable customers to transact or open accounts using e-KYC as well as the conventional method
- SMS Banking, which facilitates balance enquiry, in addition to SMS alerts, etc.
Also, as per government directives, the Bank had launched an insurance-focused scheme, called Suraksha Deposit Scheme, with various customer-friendly features.
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What new technologies have been introduced in the financial inclusion and payment systems domain in the industry in the recent times, and how updated is the Central Bank of India in this regard?
In the recent past, the following technologies have been introduced by the banking industry and our Bank is implementing/operating all these technologies successfully:
- Aadhaar-enabled Payment System – On-US/Off-US
- RuPay card-based payment system – ON-US/OFF-US
- Interoperability amongst banks based on AEPS and RuPay card
- IMPS – Immediate Payment Service – at BC locations intended to offer the following services for inter bank fund transfers are active in our bank. We are also going to introduce it in our BC channel:
- Person to Person (P2P) – Transactions can be initiated using mobile phone by entering the mobile phone number and MMID of the beneficiary
- Person to Account (P2A) – Fund transfer is done using the beneficiary’s Account Number and IFS Code of the beneficiary bank
Person to Merchant (P2M) – This is to facilitate commercial transactions in a similar mechanism as the above two, and
Person to Aadhaar (P2U) – Transactions can be done using beneficiary’s Aadhaar number
How do you leverage social media and analytics for ensuring customer satisfaction?
Keeping pace with the changing banking environment, we have shifted our focus from traditional push method to electronic method of communications, like advertising, direct e-mail, Point-of-Sale displays, engagement through Facebook interaction, Twitter, Mobile Banking and m-Passbook, in addition to the internet banking facility. The effective use of social media tools is improving customer satisfaction and driving business expansion through acquisition of new customers. These modes of communications are more popular with the new generation customers .