This document discusses marketing strategies for rural banking services in India. It notes that rural banking started with the establishment of the banking sector in India and mainly focused on the agricultural sector. There are over 14475 rural banks in India, with over 2126 located in remote rural areas. The document recommends that banks provide more financial inclusion and use of microcredit/self-help groups. It also suggests using new technologies, alternative distribution channels, and improving service levels in rural areas. The government is asked to establish an authority for rural banking and a strategic action plan for remittance facilities between banks and post offices. Banks should expand their reach through partnerships and kiosk banking, educate customers, be cost-effective through low-cost AT

1. Marketing Strategies for Rural Banking
Services
Presented By
Sachin K S

2. Rural Banking - Introduction
 Rural Banking in India started since the
establishment of banking sector in India.
 Rural Banks mainly focussed upon the Agro-sector
 In India, there are 14475 rural banks in the country
of which 2126 (91%) are located in remote rural
areas.
 SBI is the first bank to enter the Rural Banking
 175million A/c in India (World Bank)

3. THE CURRENT STATUS
 Started since the establishment of banking sector in India.
 Mainly focus upon Agro sector
 There are 32,528 rural bank offices and 20,771 semi-urban bank offices in the
country
 SBI and NABARD
 Rural population of about 780 million has limited access .
 Current demand for credit in rural India is around Rs. 1, 50,000 Cr.
 Commercial bank branches cover only 7 % of rural sector
and large market is still untapped.

4. 0
10
20
30
40
50
60
70
80
90
Cash at Home Deposit with Bank Insurance Deposit with Post Office Deposit with a corporative
Society
Others
Money Concentration in Rural Area

5.  More financial inclusion
 Micro credit / SHG’s
 Use of technology
 Alternate Distribution channels
 To extend banking services at customers convenience
 Improvement in service levels in rural area
WHAT IS NEEDED FROM THE
BANKS?

6. WHAT IS NEEDED FROM THE
GOVERNMENT?
 An authority for Rural Banking
 Road map
 Establish open standard for technology to be used
 Financial literacy and credit counselling.
 Strategic action plan for remittance facility for both
inter banking/ intra bank and post office

7. STEPS TO BE TAKEN
 Expand reach
◦ Tie up with India post.
◦ Partner with NGO/ MFI.
 Kiosk banking.....Offer convenience
◦ Banking services at mini branch.
◦ Making kiosk.
◦ The bio metric authentication.
◦ Improved business.

8.  Educate customers
 Be cost effective
◦ Low cost ATM.
◦ Costs just 1/ 10th that of the traditional ATM.
◦ Transfer of funds from NREGA.
◦ e – governance model
 Innovate and adopt technology
◦ Smart cards, biometrics scanning
◦ Improve the service delivery.

9. TheFourP’s
PRODUCT PRICING PLACEMENT (or
DISTRIBUTION)
PROMOTION
Multiple ‘basic’
financial services.
Devised to ensure
usage as well as
profitability.
Conveniently
located. No
discrimination .
Human groups and
Institutions of the
area .
Insurance (Cattle,
Farm Produce etc) .
Maximizing
consumer
satisfaction.
Comprehensive
offering of different
services.
Demographics,
culture, environment.
Services in native
language.
Single uniform
pricing.
Choice between
managerial models.
Psychological
methods .
Microfinance. Quantity discounts,
and ease in
payment modes.
Additional risks for
narrow diversified
entities.
Collaborating with
NGO’s to develop
knowledge.
Financial advisory
services
Agenting model
(service points)
Loan Gateway Biometric ID’s

10. THANK YOU