FINANCIAL INCLUSION AND MICRO MARKETS
In addition to the branch network, the Bank also extends banking services through its 63,000 Customer Service Points, which are located in close proximity, at no additional cost to its customers.
State Bank of India with nearly 22000 retail banking branches out of which nearly 14000 are located in semi urban areas has always been at the forefront of development of the nation - be it corporates, MSME, consumer finance, housing or rural development.
Rededicating itself to the development of “Bharat” and in line with its vision of “Being the Bank of choice for a transforming India” the Bank has set up a dedicated Financial Inclusion & Micro Markets Vertical (FI&MM). With this, nearly 8000 branches in rural and semi urban areas would focus exclusively on micro finance, agriculture & allied activities and micro/small enterprises. This strategic move is aimed at reaching out to the masses at the bottom of the pyramid. With this initiative, SBI is also creating a value chain for the growth of these communities and their future generations.
A major portion of SBI’s CSR spending will be through this FI&MM vertical so as to ensure community development.
The Bank has set up 260 dedicated District Sales Hubs to strengthen the bonds with the rural economy. These Hubs would work in close association with the local economy, government agencies and engage with SHGs, JLGs, FPOs, NGOs, etc. Working closely with the local community helps these Hubs in identifying the future financial requirements of people in these areas, hence constructing a blueprint for immense growth.
The sales hubs would deliver customised financial products for the local economy. Each hub would act as an outbound sales force and promote investment credit in 25-30 branches attached to it. Their efforts would be supplemented by recruiting officers who specialise in agriculture, horticulture and social banking. Such interventions would result in multi-fold benefits to various sectors of the local economy.
In addition to the branch network, the Bank also extends banking services through its 63,000 Customer Service Points, which are located in close proximity, at no additional cost to its customers. This initiative would lead to decongestion at branches and improve interaction with customers. The sales hubs would work in close collaboration with the Customer Service Points and ensure their optimal functioning. This important channel caters to basic banking needs such as cash withdrawals, cash deposit, pass book updating, remittances from and to the remotest places, provide the option of Social Security Schemes such as Atal Pension Yojana, Pradhan Mantri Jiwan Jyoti Bima Yojana & PM Suraksha BimaYojana. These schemes are available at very low costs. The CSPs would also act as collection agents for collecting Bank’s loan instalments as and when they fall due. The CSPs provide self-employment to the Kiosk operator having certain basic computer proficiency. Further in terms of an MOU signed by the bank with National Skill Development Corporation, 8500 local youth would be engaged as apprentices under the initiative of Ministry of Skill Development to increase their employability. These apprentices would be attached at the Bank’s rural and semi-urban branches.
The FI&MM initiative of the Bank would be a game changer in making available effective banking & financial services in rural areas. It would help in meeting the credit needs of rural areas and create a framework of continuous growth.
IMPARTING FINANCIAL LITERACY
A key factor intertwined with financial inclusion is financial literacy. With the objective of imparting financial literacy the Bank has set up 341 Financial Literacy Centres (FLCs) across the country. In FY 2019-20, a total of 29,995 financial literacy camps were conducted by these FLCs across the country where 16.82 lakh people participated. As a part of the pilot project implemented by RBI, the Bank has also set up 15 Centres for Financial Literacy (CFL) at Block level, five each in the state of Maharashtra, Chhattisgarh and Telangana in association with NGOs identified by RBI
An all-inclusive approach in creating more awareness about financial products and organizing aggressive education cum promotion campaigns in unbanked parts of any region has led to the success of SBI financial inclusion initiative. Going forward, it would help in uplifting the economic status of the unbanked population, by encouraging them to be ‘Atmanirbhar’.
ROBUST BUSINESS CORRESPONDENT CHANNEL AND CSPs
Over the years, the Bank has built a robust network of low-cost Business Correspondent (BC) Channel. BC model is supported by 19 national BCs and 47 Circle BCs, who deliver Banking services through Customer Service Points (CSPs). BC Channel provides banking products and services to the populace in unbanked areas. It also facilitates reduction of footfalls in Bank branches. SBI has leveraged on the advanced in-house “Kiosk Banking” technology to take banking to every corner of the country.
INITIATIVE FOR INCLUSIVE DEVELOPMENT
Financial inclusion and community development go hand in hand at SBI. Education, women empowerment, healthcare and sanitation, arts, culture and heritage, sustainability and environment – are areas in which SBI Foundation’s CSR activities has been consistently working. Various CSR programmes deliver societal benefits to all geographical regions of the country without any regional, linguistic, caste, creed, religious or other barriers. This has made true difference to the lives of over a million beneficiaries from underserved communities.