CSP: a new age of banking to boost the Indian economy

The Indian economy has taken a nosedive in the recent few years. The situation further worsened during the second wave of Covid-19.

Indias economy faced degrowth of 23.9% GDP, which is the worst performance in 24 years.

The Reserve Bank of India and Financial institutions are probing through every possible detail and agreement to adapt to the economy and accelerate its development. While emerging markets have not yet fully recovered, the Reserve Bank of India and Financial institutions constantly examine past patterns and situations to obtain fruitful results.

 The facts confirm that the inherent quality of any country is its ability to do business, create innovativeness, and strengthen its financial structure.

Savings in a typical rural Indian family is always on the higher side. Unfortunately, most of these savings dont reflect in the Indian economy. The main reason is the lack of proper banking services in rural India.

The Government of India has put distinctive stress on the Reserve Bank of India to prepare a blueprint to reach out to the rural population with formal banking services.

The Indian banking industry has undergone some major reform, and it is about offering more to the rural population. However, it is not always viable for the banks to open their branches in remote locations of the country; most of these banks outsource their essential banking services to private agencies, which brings us to the concept of Kiosk Banking or Customer Service Points.

What is Customer Service Point?

Customer Service Point is a mini bank operated by a non-banking individual or an organization. Customer Service Point allows the customer to deposit, withdraw cash, check account statements, open a no-frill Bank Account, and even place an order for a cheque book.

CSP: An initiative to boost Indias economy

Customer Service Points can offer branchless banking services to low-income workers and laborers. In most cases, they dont have a Savings Bank Account due to the lack of necessary documents, or they live and work far away from the nearest branch. Customer Service Point allows people in the low-income group people to open bank accounts with minimum documents.

The Customer Service Point thus integrates rural savings with the Indian economy; this is very positive.

The more is the inflow of cash, the stronger is the economy.

The positive intent of RBI involving the Bank CSP doesnt end here.

CSP to pillar employment

The Reserve Bank of India has granted the appointment of CSP operators / Bank Mitra in the remote countrysides. The CSP operator post is preserved for the educated rural village youths, thus promoting employment at the village level.

The Customer Service Point has unleashed the scope of occupation in the banking sector to the educated youths.

If you are unemployed and looking for a job that offers you a steady monthly income, you may consider the profession of a CSP operator. The position of a CSP operator/Bank Mitra will aid you in functioning as the delegate of the bank and provide the public with a variety of banking services.

However, to become a CSP operator/Bank Mitra, it is not mandatory to clear any competitive examination; efficient computer skills, knowledge in accounting & finance, and the power of communication make the job far more interesting.

There are multiple income opportunities for a CSP operator/Bank Mitra. The Customer Service Point operators get their payment as commission for the banking services they render. In addition to that, a CSP operator receives a monthly fixed salary of ₹5000. The net monthly income of Customer Service Point operators ranges from ₹20000 to ₹25000.

How to start customer service point - how to start sbi customer service point

How to apply for a Customer Service Point?

The CSP registration process is online. Only an authorized CSP provider can initiate the process.

Indian citizens attaining the age of 18 can join in the CSP apply initiative of RBI.

Eligibility for Customer Service Point registration

 The pre-requisites to apply for a CSP are:

Two passport-size photographs.

PAN Card

Identity proof (Aadhaar Card/ Driving License/ Passport/ Voter Card) that is issued by the Government of India.

10th standard pass certificate.

One laptop with internet connectivity.

One printer.

One scanner.

Shop with minimum 100m2 area.

Shop address proof.

Residence address proof (electricity bill/telephone bill/ration card)

NOC from the local Police Station.

A candidate ready to launch a Kiosk Banking outlet should communicate with an authorized CSP provider. 

The CSP application form is generally available on the official website of the CSP provider. The candidate must fill the online application form non erroneously, upload the documents mentioned above. 

After successful document verification, the candidate is informed via SMS or email. The SMS or email will bear the login id and password authorizing him to set off a CSP outlet.

Conclusion

The State Bank of India is the largest money lender. SBI negotiates the maximum number of CSP apply cases. It has the highest number of customers. Moreover, SBI has 72000 Customer Service Point outlets all over the country. Hence, it is advisable to start a Customer Service Point with the State Bank of India.