Branchless banks, a new system for rural India

Kolkata, Jul 10: Branchless banking is likely to be the future of the new age banking system in rural India.

Speaking to mediapersons at a banking conclave organised by FICCI here today Corporation Bank Managing Director B Sambamurty said branchless banking could be apart of Finanacial Inclusion (FI) in the rural areas.

The FI is a process through which the basic banking services reach the deprived section of the society.

''We have started implementing branchless banking in six villages in Karnataka, which will be replicated in 100 more villages.'' he said adding that in urban areas cashless banking would replace debit and credit card in near future.

Mobile phones would play the role of catalyst in developing the cashless transaction system, Mr Sambamurty said.

Talking about the bank's plan to raise money, Mr Sambamurty said the bank had headway to raise Rs 4000 crore capital through TIER-II bond.

However, he refused to give any time-frame as when the bank would raise money for the same.

The total business of the Corp Bank in 2006-07 was Rs 72,000 crore and the net profit reported as Rs 556 crore.

UNI