Rural Banking(37,43,56)
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Transcript of Rural Banking(37,43,56)
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Mobilizing Bank Deposits
from Rural India
Presented by:
Darshan Patil M-11-37
Varun Rajegore M-11-43
Sunil kumar Singh M-11-56
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Rural India A Profile
Population1 Billion (approx.)
2/3rd of Indian population is in rural areas
Indian households avg. Income - 4,579/annum
rural india - 3,500/annum
Main sources of rural income :-
Agriculture (47.9%)
Agriculture wage (13.3%)
livestock (6.6 %)
Rural consumer now demands for consumer durables &non - durables
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Bank Deposit Potential
in Rural India Commercialization of agriculture
Diversified activities
Invest their surplus in insurance & deposits and keep
balance savings in a local bank.
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Approach to Rural Banking
SBI - 1955
Expand banking facilities, in rural & in semi - urban
areas.
1969 - Nationalization of 14 commercial banks - control
economy.
1975 - RRBs - focus only on rural areas - efforts of
cooperatives & commercial banks
1982 - Promote & supervise institutions & channelise
credit to rural areas - NABARD
kissan credit cards self help group
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Rural Choice Architecture
Financial institutions in rural areas are
Agricultural credit societies
Cooperative banks
Commercial banks
Regional rural banks (RRBs)
In view of poor resources , these institutions extend
themselves to more of lending than collecting deposits.
Post Offices - mobilize savings
Offers saving bank accounts, accept term deposits and small
saving scheme.
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Attributes in choosing with
whom to bank in rural India
Convenience of location
Bank reputation
Province of head office
Interest on savings
Bilingual staff
W-O-M validity
Service charges
Attractiveness of branch
Safety of funds
Availability of credit
Inter branch facilities
Speed of processing
Interest on loans
Hours of operation
Cultural orientation of bank
Efficiency of personal
Impression of manager
Range of services offered
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Challenges in Rural Promotion
Advertising + Public relations
Ineffectiveness of traditional media
Print ( 9% reading population)
TVC (31% TV audience)
Radio ( 32% radio listeners)
Low literacy levels
Total: 52% ( 63% M , 39% F)
Scepticism
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Questions for effective promotion
What are the exclusive tools of rural promotion?
What will be the most profitable rural media mix?
What should be the most appropriate delivery
formats for the advertising message?
What will be the best allocation of media budget?
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First Building Block
Puppet shows by UBI
Village haats
Hoardings Sheds
Microphone ads
Melas and fairs
Alleppey boat race, Kerala
Kisan melas
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Rural Media mix
Medium Urban Rural
TV 79 35
Press 51 20
Radio 66 43
Cinema 47 43
All Media 92 70
Source: Business India
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Non-Mass Media
Sarpanch
Developmental Official
Returning locals
Educational persons Social workers
Shopkeepers
Rumours and folklore
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Opinion Leaders
Social workers
Schoolteachers
Doctors
Returnees from Cities
Religious people
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Hoardings and Billboards
Hoardings at market places, bus, railway station
etc.
Should be simple & easy to remember
Written in regional language Customize hoardings at bus shelters
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Word-of-Mouth
Yet to be tapped
Villagers unaware of Banking Brands
The landlords, village elders and moneylenders
General distrust of big financial institutions
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Video Films
Give information about various developmental
schemes
Youth club, farmersfora
Reach to potential depositors Follow up discussion
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Delivery Formats For
Rural Communication
Combine Traditional folk media with modern media
Participation in traditional folk events
Sponsor events & programmes
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Allocation of Media budget
Launch of special events
Promotional campaigns
Reaching new areas
Meet new priorities
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Barriers to Rural Promotion
Bankers doubt effectiveness of advertising
Advertising is waste of resources