INSTITUTE OF LAW, NIRMA UNIVERSITY

VIII SEMESTER

B.COM.LLB (HONS.)

CASE STUDY - INDUSIND BANK’S ‘BHARAT MONEY

STORES’ – ENABLING FINANCIAL INCLUSION FOR THE
MASSES

(LAW ON CORPORATE FINANCE)

Prepared & Submitted By-

PARAS PANJWANI (19BBL098)

SHUBHAM TEJAS (19BBL110)
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 PAGE NO.

1 ABSTRACT 3

2 INTRODUCTION 4

3 BACKGROUND 4

4 IMPLEMENTATION 4

5 IMPACT 5

6 CONCLUSION 6

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ABSTRACT

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A financial inclusion programme called "Bharat Money Stores" by IndusInd Bank aims to
offer banking services to India's unbanked and underbanked people in rural and semi-urban
areas. The programme was introduced in 2017 with the goal of utilising technology to offer
accessible, low-cost financial services to the general public.

The programme is set up to function through a network of "Bharat Money Stores," or local
small business owners, entrepreneurs, and kirana store owners. These correspondents are
given a micro-ATM, a smartphone, and a biometric device in order to offer consumers in their
local communities’ basic banking services including cash deposit and withdrawal, money
transfers, balance inquiries, and bill payments.

The project intends to increase financial literacy and awareness among the population, foster
economic development in these regions, and give new bank customers access to official
banking channels. The program has been able to leverage technology to provide a seamless
and secure banking experience to customers, especially those who are new to formal banking
channels. The micro-ATMs provided to banking correspondents are equipped with a
biometric device to ensure secure and authentic transactions. The smartphones provided to
correspondents are pre-loaded with the bank's mobile banking application, enabling them to
provide banking services to customers in a convenient and easy-to-use manner.

The programme attempts to increase clients' financial literacy and awareness in addition to
offering basic banking services. In conclusion, IndusInd Bank's "Bharat Money Stores"
initiative is a successful financial inclusion program that has enabled millions of unbanked
and underbanked customers in remote and underserved areas of India to access basic banking
services. The program's focus on building a strong network of banking correspondents,
leveraging technology, and promoting financial literacy has been instrumental in its success.
The program has created new opportunities for local businesses and entrepreneurs, driving
economic growth and development in these areas.

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INTRODUCTION
One of India's top private sector banks, IndusInd Bank has a significant presence in both
urban and rural areas. The bank introduced its "Bharat Money Stores" programme in 2017,
with the goal of providing financial inclusion for the general public in isolated and
underdeveloped regions of the nation. The effort has been effective in delivering basic
banking services to millions of unbanked and underbanked consumers in these areas, spurring
economic growth and development.

BACKGROUND

In India, a sizable portion of the populace still has limited or no access to conventional
banking channels and is either unbanked or underbanked. This is particularly true for those
who reside in rural and semi-urban regions, where banks are less prevalent due to logistical
and operational issues. Because of the absence of access to official banking channels, people
are forced to rely on unregulated financial services like payday lenders, who frequently
impose high interest rates and fees. This in turn feeds the vicious cycle of financial exclusion
and poverty.

As a result of realising this situation, IndusInd Bank started the "Bharat Money Stores"
project to combat financial exclusion in rural and neglected areas. The program aims to
provide basic banking services to the unbanked and underbanked population in these areas,
enabling access to formal banking channels and promoting financial literacy and awareness.

IMPLEMENTATION

Through a network of local small business owners, entrepreneurs, and proprietors of kirana
stores, the "Bharat Money Stores" programme operates. These correspondents are given a
micro-ATM, a smartphone, and a biometric device in order to offer consumers in their local
communities’ basic banking services including cash deposit and withdrawal, money transfers,
balance inquiries, and bill payments.

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Customers, especially those who are unfamiliar with conventional banking channels, may
enjoy a seamless and safe banking experience thanks to the program's use of technology. To
ensure safe and genuine transactions, the micro-ATMs given to banking correspondents are
fitted with a biometric device. The bank's mobile banking application is pre-installed on the
smartphones issued to correspondents, allowing them to offer financial services to clients in a
quick and easy way.

The programme attempts to increase clients' financial literacy and awareness in addition to
offering basic banking services. To inform consumers about the advantages of traditional
banking channels and financial planning, IndusInd Bank organises financial literacy camps
and training programmes in partnership with local communities.

The programme has been effective in promoting financial inclusion and generating fresh
economic prospects for residents and small enterprises in the area. The programme has been
successful in developing a scalable and affordable methodology for offering banking services
in off-the-grid and underserved communities. This has been made possible through
collaborating with regional companies and entrepreneurs.

IMPACT

India's financial inclusion has been significantly impacted by the "Bharat Money Stores"
programme. The programme has made formal banking channels accessible and encouraged
financial literacy and awareness by offering basic banking services to the unbanked and
underbanked people in distant and underserved locations.

The program's construction of a network of more than 50,000 banking correspondents in off-
the-grid and underserved regions of the nation has been one of its most significant effects.
Millions of clients in their local communities have been able to access basic banking services
through these correspondents, allowing them to save, invest, and conduct business in a simple
and secure manner. As a result, the programme has made a sizable section of the people who
were previously excluded from official banking channels.

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The programme has had a favourable effect on economic growth and development in these
communities in addition to facilitating financial inclusion. The programme has generated new
revenue streams and job possibilities in these communities by collaborating with
neighbourhood companies and entrepreneurs, fostering economic growth and development.
Thus, the programme has not only made financial services more accessible but also given
rural and underserved communities new business options.

Additionally, by encouraging clients to become financially literate and informed, the

programme has had an influence on society. To inform consumers about the advantages of
traditional banking channels and financial planning, IndusInd Bank organises financial
literacy camps and training programmes in partnership with local communities. This has led
to an increase in financial literacy and awareness among customers, empowering them to
make informed financial decisions and manage their finances better.

CONCLUSION

In India, the "Bharat Money Stores" programme has changed the game in terms of promoting
widespread financial inclusion. The programme has been effective in giving the unbanked
and underbanked population in distant and underserved regions access to basic banking
services, promoting financial literacy and awareness, and fostering economic growth and
development.

IndusInd Bank has developed an affordable and scalable methodology for offering banking
services in rural and underserved regions by utilising technology and collaborating with
regional companies and entrepreneurs. As a result, the programme has been able to address
the issue of financial exclusion and develop new revenue streams and job possibilities in
these sectors.

In order to promote financial inclusion for the majority of Indians, banks and financial
institutions must continue to innovate and create new models. The "Bharat Money Stores"
program's success has highlighted the potential of similar initiatives and the demand for a
more inclusive financial system that meets the demands of all facets of society.
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