CORPORATION BANK TO EXTEND BRANCHLESS BANKING UNITS

As told by Mr. J.M. Garg, Chairman & Managing Director, Corporation Bank, the bank is planning to operationlise 2000 branchless banking units by the end of this financial year. This is apart from its plan to expand its 'brick and mortar' branch network in tier-3 to tier-6 centres.

In the branchless banking unit model, the bank appoints a business correspondent in an un-banked area who uses biometric smart-cards and voice-guided systems to provide secure banking facilities to its customers.

So far, the bank opened around five lakh no-frill accounts, mobilised Rs.25 crore of deposits and disbursed around Rs.20 crore loans under branchless banking model.

Apart from deposits and loans, the bank has also introduced a remittance service where an account holder can pay the bank-appointed business correspondent for money transfer to another account. The beneficiary can withdraw through the business correspondent at the other end. The bank is using Tata Teleservices Network for the transactions.

Source: http://www.blonnet.com/2009/12/28/stories/2009122851741000.htm