Physical bank branches play key role in rural areas

Physical bank branches will continue to play important part in rural areas, in spite of the adoption of digital transactions seeing a huge leap in these areas in the last 18 months, say bankers.

“Rural is becoming digital yet it needs a physical presence. Rural will consistently stay somewhat physical,” IndusInd Bank Managing chief and Chief Executive Officer Sumant Kathpalia said during a board conversation at the Financial Inclusion Summit coordinated by The Economic Times. He was talking on the theme Taking Digital Banking to Rural India.

Kathpalia said over the most recent year and a half there has been a massive digital transformation in rural India. He said his bank is presently able to disburse the loan in seven minutes as against seven days earlier.

As indicated by him, the next generation of rural India is mobile ready.

Kotak Mahindra Bank Joint Managing Director Dipak Gupta said although retail clients have received phygital very quick, the non-retail clients are steal dealing in cash.