The Indian banking industry comprises public sector banks, old private sector banks, RRBs, multinational banks, new generation private sector banks and cooperative banks to serve the needs of customers. We find that the banking industry has undergone sea changes in all its activities such as working style, addressing customer needs, terminology (jargons), methodology of monitoring, para-banking, controlling measures etc. The globalization effect has made banks to focus on both commercial and social responsibilities. Hence, the banking approach to the metro, urban and semi-urban areas has been geared up. In spite of nationalized banks', efforts to take the banking services to rural and interior villages, there are lots of unbanked and underbanked areas.
Banking, no doubt, provides multifold benefits to its consumers from the focal point of savings, investments and financial assistance. Today, banks are keen to attain the status of `financial malls' . In order to transform the underbanked area to well-banked area through banking services, the Indian banking Inc., is trying to reach its services to every nook and corner of the country. This strong initiative, termed `Financial Inclusion', aims at providing banking access to every individual. There are various issues to be addressed to give the Financial Inclusion a desired shape.
According to the national commission on population, India's population has crossed the one billion mark (100 crores) and the approximate growth per annum comes to around 15 to 16 millions. The present branch network available is around 55,000 to 58,000. With an average customer base of 5,000, 30 crore people (approximately) are covered leaving the remaining 70 crore without access to banking services. This population comprises of heterogeneous groups in terms of age, personal habits, income, living condition, style, literacy level, etc. |
