Page 37 - Banking Finance November 2017

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Y Open account / provide loan approval at customer's iii) This helps the banks in fraud prevention in a big
doorstep. way
Y Capture images of customer and KYC documents, and Y Direct Benefit Transfer
Geo co-ordinates of property location. Aadhaar enrolment in India has crossed 1 billion mark.
Banks are able to make direct payment of various kinds
7. Cash Deposit Machine (CDM) of subsidies to the accounts of beneficiaries in Aadhaar
CDM is a Self Service Machine for deposit of cash (bunched seeded bank accounts. It has also helped in plugging the
notes). CDM allows the customers to make cash deposit leakage. World Bank in its World Develpment Report
through a bunch of loose notes up to 200 notes with a released in January 2016 has applauded, India's move
maximum limit of Rs.49900/- per transaction. The CDM will to roll out Aadhaar to its citizen and said that it is
accept Cash Denominations of Rs. 1000/-, Rs. 500/- and Rs. worthy of replication by other countries as an example
100/- notes only. It increases convenience for customer by of technology leading to economic transformation.
accepting cash deposit by validating and counting deposited Though, in a recent ruling on Aadhaar, Supreme Court
currency, like a teller transaction. Currently Cash Deposit, has said that Aadhaar can't be made mandatory to avail
Balance enquiry, Mini Statement and PIN Change government facilities, but on a voluntary basis if a person
transactions are available through CDM. wants to submit his Aadhaar number, he can submit it
to the appropriate authority.
Benefits to the Customers Y Electronic transactions:
Y Self Service process, Customers do not need to come to The UIDAI's authentication processes allow banks to
the branch for cash deposit transactions. verify residents both in person and remotely. Rural
Y Amount is credited instantly to customer's bank residents will be able to transact electronically with
account. each other as well as with individuals and firms outside
the village. This will reduce their dependence on cash,
Y Can Use Services after Branch Office Hour/Holidays.
and lower the costs for transactions. It will also reduce
Available 24x7.
physical obstacles to accessing financial services.
Y No Need to prepare vouchers.
Y No need to wait in the Queue at Counters. 9. Social Media in Banking
The explosion of social media tools offers banks an
8. Aadhaar unparalleled opportunity to easily and quickly build credibility
Introduction of Aadhaar along with PMJDY has immense and establish business relationships. There are many social
potential to make financial inclusion a great success. media tools available, like Facebook, Twitter, Google+,
Aadhaar has brought three significant changes in banking LinkedIn, etc. An active social media presence allows a bank
operations: to get immediate feedback from customers and obtain new
Y Aadhaar is suffices for Know Your Customer (KYC) product ideas. It gives an alternative channel to the
The RBI has permitted the Banks to accept e-KYC as a customers to perform many banking transaction like fund
proof of identification. It is a major step towards transfer, request for cheque book issue and account
financial inclusion. It has undernoted three benefits: statement, etc. It also helps in addressing customer
i) Earlier in the absence of documents people were complaints promptly.
unable to open account, now with e-KYC being an
acceptable document for identity verification, 10. Digital Branches
account opening has become possible for a large Moving ahead with digital banking initiatives and in line with
number of people who were not having any other
the government's aim of reducing cash transactions, banks
documents hitherto.
have recently started launching fully digital branches having
ii) This has reduced the costs of opening new bank ATM, Internet Banking Kiosk, CDM, Self Passbook printing
accounts Machines, GCC, PoS, etc. in a bid to provide best banking

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