Mumbai, Jan 9 (UNI) The banking system needs to innovate and adopt the model of ''mobile banking'' to bring the rural masses under its ambit, National Knowledge Commission chairman Sam Pitroda today stressed.
Delivering the keynote address at the Banking Technology conference here today, Mr Pitroda said, ''Banking is an instrument of social change. But, in India, the banking system has not been benefical to the rural masses.'' Banking institutions should adopt new concepts to distribute money, he emphasised.
He said that to widen the reach of banking network in the country, banks should look at indigenous models such as existing STD-PCO network as an extension of banking instrument to reach to the rural masses in transactions of small amount of cash.
While referring to the large chunk of population which is still outside the banking ambit, he said, ''All the technological innovations have no meaning if the issues and challenges of rural banking can't be solved.'' He urged the banks to take advantage of the fast growing telecom network in the country and use mobiles as a business correspondence for transactions where banking facility is not available.
He pointed out that its no longer about traditional banking.
It is only about transactions and the banking system should strive to provide low cost transactions to the poorest of the country.
UNI AD MAZ SM1352