Interlinking eLounges in India-Break the Silo Mentality
In the last year, Banks in India have
been setting up eLounges across the country to encourage customers to migrate
to Digital Transactions.
Q: What is eLounge?
Ans: In layman’s language, eLounge is a
self-serviced banking kiosk to enable bank customers to transact a variety of
transactions at their own pace.
eLobby Banking can be understood as the automated delivery of new and
traditional banking products and services without the intervention of the bank
staff and through the interactive communication channels.
The following links show the spread of
eLounge/eLobby in Banking sector in India.
State Bank Tech
Learning Centre – Interactive learning session to familiarise Bank’s
alternate banking channels viz Net Banking, Mobile Banking, Green Channel,
ATMs, CDMs, Plastic Banking(Cards), Pass Book digital printing & more
One of the main reasons for low adoption
of eTransactions in the rural areas is the absence of safe transaction
environment.
One way of reducing
the fear of unsafe transaction environment is to ensure safe transaction
environment.
Another
challenge is the frequent disruptions due to power cuts or internet failures.
The above links show that major banks
in India have invested heavily to offer Safe eBanking environment to their
customers. Please note this eLounge services is restricted to their CUSTOMERS. Other bank customers can only access
ATM services.
These eLounges’/eLobbies’ offer the
following services, depending on the respective bank’s vision for increasing
digital transactions:-
- Cash Dispenser
- Passbook Printing kiosk
- Coin Vending Machine
- PCs for Netbanking facility
- Cash Deposit Kiosks
- Cheque Deposit machines
- Self service terminals
- Automated Pass Book Printing
All the above services operate in
silos i.e they offer service to their respective bank customers only and no inter-operability
is possible.
This means a Bank of Baroda customer
cannot access his/her account at Corporation Bank eLobby.
Drawbacks of the Silo Mentality:
a)
Low
number of transactions
b)
High
maintenance cost
c)
Low
turnover of transactions
d)
Reduction
in Management interest
e)
Gradual
shutdown of eLounge/eLobby
Reserve Bank of India vide its circular No RBI/2015-16/288
DBR.No.BAPD.BC.72/22.01.001/2015-16
dt.January 14, 2016 outlined the “Facilities which can be provided through
ATMs”.
Broad interpretation of this circular
indicates that customer of any bank should experience Safe Digital transactions
environment in any ATM and should not be tied down only to his/her Bank
eLounge.
ATMs should be kept free for cash
transactions only and other machines in the ATM lobby may be made available for
other facilities.
The average time for a cash transaction at
ATM is 60 seconds and the average time for a non-cash transaction ranges from
60 seconds to 180 seconds.
The
Alternates:
a)
Linkages
of all banks eLounge/eLobby
b)
Customers
of any bank can access basic electronic banking service at any bank
eLounge/eLobby
As
the basic infrastructure is already in place, linkages of eLounges’/eLobbies’
are feasible with minimal investment by the respective banks.
Advantages of such linkages:
01)
Increase
in footfalls at the eLounges’/eLobbies’
02)
Increase
transactions turnover at the eLounges’/eLobbies’
03)
Reduce recurring expenditure
04)
Assist in the spread of Digital India Vision
The broad contours of a typical
eLounge for Safe eTransactions are as under:-
1.
Each hub to have a minimum of 3 high end computers
2.
Each hub to have broadband connection
3.
3 FA (3 Factor Authentication)
A.
1st Factor
– something the user knows
B.
2nd Factor
– something the user has
C.
3rd Factor
– something the user has
4.
The hub to be protected from internet viruses and other threats
Bank eLounges can be set up "CSC
eGov” service centres. 1,40,000 CSC eGov service centres are spread over India.
The number is expected to be scaled up to 2,50,000 in the next couple of years.
Difficult to believe!! Check
this out.
At a single stroke, the footfalls in
CSC service centres will increase and boost ancillary services too.
Comments
Post a Comment