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Online Banking Gets Boost In Rural Areas

Online Banking

In the backdrop of invalidation of Rs 1,000 and Rs 500 notes, online banking will get a boost up in rural areas. Debit and credit cards have already been extensively used in rural areas for last few years.

Thanks to information technology, debit card is available with almost all bank account holders. Following the Pradhan Jan Dhan Yojana (PMJDY) scheme, first-time bank. account holders also got the debit card facility. Due to lack of financial literacy, people in rural and semi-urban areas are unable to utilise the available banking services.

Commercial and private banks are offering online banking services free of cost, but most customers prefer to make physical transactions instead of online services. In view of cancellation of big currency notes, now people are forced to utilise the online banking services Speaking to this correspondent, Mr Srinivas, branch manager with State Bank of Hyderabad, said that only 10 15 customers of his branch were utilising the online banking services and the number is bound to increase, with the decision of the government to demonetise high value currency notes.

Replying to a question, he said that there was no separate charge for online banking, but a majority of the customers are not yet utilising the services.

Strangely, bankers prefer to keep Rs 500 and Rs 1,000 denomination notes in Automatic Teller Machines (ATMs) instead of keeping Rs 100 bunches in ATMs. It is believed that filling of ATMs with Rs 100 notes will be difficult for bankers and customers for the next few days. Mr Praveen, manager at a supermarket, said they receive only 500 and 21.000 notes even for small transactions. It was very difficult to provide change for every customer.