Capex drives tech modernization
Karnataka Gramin Bank has taken a series of technology-based initiatives during the covid pandemic:
With the splendid support from the IT team of sponsor bank Canara Bank, Karnataka Gramin Bank is one among the first few RRBs to deploy its own ATMs. The bank has 241 ATMs and 5 mobile ATMs. All the ATMs were effectively deployed to render service to the customers in view of the limited service through branches. It is proposed to open at least 25 more ATMs in the current financial year.
A unique feature has been the deployment of 5 mobile ATM vans in Bellary, Kalburgi Chitradurga and Mysore districts. The bank’s chairman Shreenath Joshi says the mobile ATMs were pressed into service during the lockdown period, rendering ATM services to the customers at their doorstep and market places. These ATMs could clock average monthly financial transactions of 940 and nonfinancial transactions of 360.
IN-HOUSE TEAM, HUGE CAPEX
The bank is one of the very few RRBs, which have sought to develop its own IT infrastructure on a capex model. It has an in-house team of over 60 employees deployed exclusively to cater to the IT initiatives.
In the initial years of automation, the bank intended to automate mundane banking operations. However, this has changed and Shreenath says realizing the pivotal role technology can play, the bank deployed the best of the manpower and incurred huge expenditure to put in place the most enviable technology among RRBs. For 2020-21, the total capex of the bank is `270 million and the total revenue expenditure is `717 million. It has been aptly conferred with the ‘Technology Bank of the Year’ (Runners up) award by the Indian Banks’ Association at its 16th annual edition held in March 2021.
HIGHEST RUPAY CARDS
The bank has been in the forefront in technological inter ventions and
innovations in the field of financial inclusion initiatives of the government. It has been awarded for the issuance of highest number of RuPay cards - 1.56 million. Shreenath says it has provided the best of the IT products, alternate banking channels and technology enabled services and brought out the best of the technology-based banking products, on par with the scheduled commercial banks.
BC WITH MICRO-ATM
The bank was also the first among a few banks in introducing AEPS. Shreenath says the bank has over 1300 BCs with micro-ATMs enabled for carrying out all the transactions prescribed by the finance ministry. It is the first among the banks to introduce off-us transactions, enabling RuPay card transactions in the micro-ATMs, dual authentication services, etc. During 2020-21, BCs have put through 9.7 million transactions (previous year 7.5 million) amounting to `30.60 billion, (against `21.88 billion a year ago) registering a growth of 40% in terms of transaction value and 29% in terms of number of transactions.
Says Shreenath: “Duri n g the lockdown periods, when branches were functioning intermittently with limited working hours and manpower, these 1300 BCs have put up a brave face for the bank by rendering doorstep services to the rural masses in the remotest places. With the latest hand-held micro-ATMs, they have been providing great service through channels like AEPS, both on-us and off-us, inter operable RuPay card transactions, dual authentication for SHG transactions, opening of e KYC accounts, Aadhaar seeding, etc.”
“The pandemic,” he adds, “has brought about a sudden surge in our AEPS transactions nearing 10 million mark, most of which emanating from rural areas.”
UPI VIBRANT PLATFORM
UPI transactions of the bank reached an all-time high of 300,000 transactions per day. During 2020-21, the bank enrolled 100,000 new customers for mobile banking and 20,000 customers for internet banking. Shreenath feels with the advent of UPI, customers are leaning towards it as it is more convenient and customer friendly. It is, he says, yet another platform, which has become more vibrant during the pandemic.
LEVERAGING SOCIAL MEDIA
The bank has been active on social media. For example, when any new customercentric applications like mobile banking or internet banking are launched, tutorials on the registration process and usage will be uploaded on the bank’s official YouTube channel. “This has given wonderful response from the customers, as navigation of the application becomes easy for them. We closely monitor the
activities in Google Play Store and Apple App Store regarding feedbacks and suggestions published and give
replies to each issue raised thereon,” says Shreenath.