Which Technologies Should Be Adopted By Regional Rural Bank And Cooperative Banks ?


In our Part One of the Banks and Technology Series we spoke about the technologies needed by Public Sector Banks, Private Sector Banks, and Foreign Banks. This post is part 2 of the same series, and we would continue our discussion on technologies desirable by Regional Rural Banks [RRB’s] and Cooperative Banks [ State and Urban Cooperative Banks]

Banks and Technology
Banks and Technology


  • Technologies to Be adopted by Regional Rural Banks[RRBs]



As per a report the RRB’s with their formation on October 2, 1975, have attained a unique place in providing agricultural rural credit. With their initiatives, they have managed to provide banking services to the unbanked population

Banks
Examples of Bank
Who is the Target Audience
What Technology They Should Adopt to
How a Technology Would Help the Banks
Regional Rural banks
1.Chhattisgarh Rajya Gramin Bank
2.Karnataka Vikas Grameena Bank
3.Vidarbha Kokan Gramin Bank
Started with a simple motive to help the rural/BPL individuals, they mainly target –
1.People living in rural/remote areas
2. In need of loans without collateral
1. Mobile App Launch of banking services via Mobile App and Internet helps customers in availing services anytime from anywhere across the globe.
2. e-KYC acceptance Reducing carbon footprints would assist the mother earth but also would speed up the process of essential services like Opening Account or Loan Reimbursements
3. e-banking Enabling Banking services via the internet would help customers accessing banking from anywhere anytime.
4. Use of Biometrics Biometrics would assist in reducing fraud and identifying potential security threats
5. Branchless Banking DIY Banking corners like e-corners launched by SBI or e-hut by IDBI bank to access banking anytime.
6. Agent Banking Solution With remote areas/rural areas not having enough bank branches services like Agent Banking, ATM, PoS or e-corners could add to get more customer satisfaction and business to banks

  • Technologies to Be adopted by State Cooperative Banks[SSBs]



As stated by Academia in a study - The state cooperative bank is a federation of the central cooperative bank and acts as a watchdog of the co-operative banking structure in the state. Its funds are obtained from share capital, deposits, loans and overdrafts from the Reserve Bank of India. The state co-operative banks lend money to central co-operative banks and primary societies and not directly to the farmers.

Banks
Examples of Bank
Who is the Target Audience
What Technology They Should Adopt to
How a Technology Would Help the Banks
State Cooperative Banks
1.Andhra Pradesh State Co-operative Bank
2.Karnataka State Co-operative Apex Bank
3.Delhi State Co-operative Bank
Owned by State, its open to all individuals residing in a particular state. It usually targets – -People at state/district level like small scale industries or local businessmen 1. Mobile App Launch of banking services via Mobile App and Internet helps customers in availing services anytime from anywhere across the globe
2. e-KYC acceptance Reducing carbon footprints would help the mother earth but also would speed up the process of essential services like Opening Account or Loan Reimbursements
3. e-banking Enabling Banking services via the internet would help customers accessing banking from anywhere anytime.
4. Use of Biometrics Biometrics would assist in reducing fraud and identifying potential security threats
5. Branchless Banking DIY Banking corners like e-corners launched by SBI or e-hut by IDBI bank to access banking anytime.
  • Technologies to Be adopted by Urban Cooperative Banks[UCBs]



As stated by Academia in a study - The term Urban Co-operative Banks (UCBs), though not formally defined, refers to primary cooperative banks located in urban and semi-urban areas. These banks, till 1996, were allowed to lend money only for non-agricultural purposes. This distinction does not hold today. These banks were traditionally centered on communities, localities, workplace groups. They primarily lend to small borrowers and businesses. Today, their scope of operations has widened considerably.

Banks
Examples of Bank
Who is the Target Audience
What Technology They Should Adopt to
How a Technology Would Help the Banks
Urban Cooperative Banks
1.Apna Sahakari Co-Op Bank Ltd.
2.Ahmedabad Mercantile Co-Op Bank.
3.Kalupur Commercial Coop. Bank
Owned by State is open to all individuals but is a preferred choice by – -Small scale sectors - Local people in business operating within state or semi-urban area 1. Mobile App Launch of banking services via Mobile App and Internet helps customers in availing services anytime from anywhere across the globe
2. e-KYC acceptance Reducing carbon footprints would assist the mother earth but also would speed up the process of essential services like Opening Account or Loan Reimbursements
3. e-banking Enabling Banking services via the internet would help customers accessing banking from anywhere anytime.
4. Use of Biometrics Biometrics would assist in reducing fraud and identifying potential security threats
5. Branchless Banking DIY Banking corners like e-corners launched by SBI or e-hut by IDBI bank to access banking anytime.

This post is an effort to streamline the efforts put in by Banks, Fintech firms and NGO’s to make Banking accessible to one an all. If the RRBs and Cooperative banks adapt to these technologies, it would not only help the providers in maintaining transparency but also would make banking reachable to remote and rural areas.

This post is part 2 of banks, and their technology needs series, in case you have missed our part one. Here is the link to part One Article - Which Technology Do Public Private Sector And Foreign Bank Need to Adopt
The next part of the series would talk about technologies to be adopted by Payments Banks, Small Finance Banks and the fintech providers in India with their banking solutions.

Stay Tuned!

References:
Payments Bank
List of banks in India
Grameen_Bank
What are Payment Banks? Why India Needs Payment Banks?
All you need to know about small finance banks
What are small finance banks and payment banks? How are they different from commercial banks?
Here’s how top 5 Indian banks use technology
Banks collaborate with new age fintech companies for rural banking
Impact of financial inclusion drive through co-operative banks - a study with special reference to chavara block
Performance Evaluation of Regional Rural Banks in India

Author :

Samiksha Seth
Content Strategist

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