Unbanked rural India is next on the SBI radar

State Bank of India (SBI), which is India’s largest bank, is aiming to tap a majority of unbanked rural India for its business correspondent model. The move has come at a time when the Indian government is laying stress on financial inclusion and the country is waiting for payments banks to start operations by yearend.

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As per ET reports, SBI has asked its business correspondents to take their customer service points to remote parts of rural India, so that more and more people can be brought to the bank.

"Business correspondents are an important channel for us for financial inclusion. Whatever we have done through PMJDY (Pradhan Mantri Jan-Dhan Yojana) would not have been possible without a CSP (customer service points) channel. We are putting in all efforts to make this channel stronger and give them all forms of supports that they require," said Rajnish Kumar, MD, National Banking Group at State Bank of India.

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In isolated areas where even the traditional branch-based banking is not available feasible, the state-run lender has tied up with Indian Oil Corporation so that its Kisan Seva Kendras can be converted into business correspondent outlets.

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Operating these business correspondent centres in remote areas has become all the way easier after Aadhaar integration, using which customer identity can be easily and efficiently determined.

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