Fig 11Transaction model used by ALW Fig 12SBI Tiny –Zero Smart Card Fig 13ZERO Architecture of A Little World Pvt. Ltd Fig 14Agent-assisted Branchless Banking in Five Countries Abstract Indian banking sector has been undergoing sea changes in recent years due to deregulation, globalization and economic reforms. Several banks have made significant strides to achieve profitability, financial stability and competitiveness to cater to the increasing demand for financial services. However, the benefits of the growth have been limited to a minority of total population of the country.

Banks have not been able to reach underserved and underprivileged sections of the society, for various reasons. In this respect, the current buzzword in the banking sector “Financial Inclusion” is matter of concern for all major participants like Financial Institutions, Government, and regulator RBI. The concept of Financial Inclusion in banking scenario is delivery of banking services like savings, credit, remittances, insurance etc at an affordable cost to vast sections of disadvantaged and low-income groups. Financial Inclusion is not only for social growth but a profitable proposition for banks.

There is vast untapped market in India and the banks can reach out to cater to their financial needs. It is, therefore, imperative to roll out an action plan to cover the highly excluded regions in a very definite, time bound manner. This project on a major platform is one of the initiatives for serving the objective of Financial Inclusion. This report is demarcated into the two phases as per the tasks requirements for the objective fulfillment. The first phase deals with “Branchless Banking”, a pioneering banking model for serving the need of Financial Inclusion.

This section of the project aims at study and analysis of Models of Branchless Banking. “Branchless Banking” – provision of banking services outside traditional brick-and-mortar branches is the greatest innovation in the field of banking to serve the financial services to unreached masses. This is transformational in the sense that it extends to customers who would not be reached profitably through traditional branch-based banking by tapping into existing infrastructure that already reaches unbanked people such as Mobile Phones and Local retail outlets that might be used as agents for cash-in/cash-out transactions.

This phase attempts to study models of Branchless Banking already implemented by various banks like Corp Bank, Andhra Bank. This section also highlights several risks involved in models of branchless banking, issues and challenges in consideration of this banking model. The next part focuses on Information and Communication Technology (ICT) that has emerged as the new pillar of modern Banking. The objective of our study is to evaluate the current delivery models for financial services to rural areas through ICT in terms of their effectiveness, sustainability and viability.

mes and is currently sized for 50 million customer accounts. The backend transaction