IndusInd Bank`s `Bharat Money Stores`- Enabling Financial Inclusion for the Masses
| Case Code: FINC198 Case Length: 6 Pages Period: 2017-2021 Pub Date: 2022 Teaching Note: Available |
Price: Rs.300 Organization: Bharat Financial Inclusion Ltd Industry: Banking Countries: Asia Themes: Banks and Banking, Business Models, Technology in Financial Services, |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
The Need for the Financial Inclusion
A large proportion of India’s1.3 billion population lived in villages in the rural areas. The total rural population was 898 million as of 2022. It was this large proportion of the rural population that lacked easy access to financial services at affordable prices. Most of the individuals living in these villages were unbanked and had no access to banking services due to the lack of banks or their services in the villages..
The Business Model
The BMS, a banking and transaction platform, was developed by IndusInd Bank and BFIL by adopting the latest existing technology. The platform enabled the small merchant shops or grocery store owners to provide financial services to the rural population in the villages and remote areas. By using the Bharat Money RDSP CSP app , the merchants were able to provide digital banking services to the rural population at a single location..
Reaction of Merchants and Beneficiaries
During the Covid-19 pandemic, the government had embarked upon the Direct Beneficiary Transfer (DBT) scheme to transfer money to those who had lost their livelihoods due to various factors. Numerous affected people had withdrawn money through the BMS merchants and availed of the easy mode of cash deposit, withdrawal, and other banking related transactions. Raghvendra, a BMS merchant in Chincholi, Karnataka..
Road Ahead
As of June 2021, BMS had 65,000 small merchant shops in 27,500 villages across ten states in India. In the following two years, that is, by 2023, BMS planned to open 300,000 RDSPs in 180,000 villages across the country. The success of BMS’s business model could be gauged from the fact that during the Covid-19 pandemic, there was a 300 percent increase in bank withdrawals due to the government’s DBT scheme..
Exhibit
Exhibit I: Details of the Competitors to BFIL
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