How to open a CSP for any bank in 2023?

How to open a CSP for any bank in 2023?

Today in this article, we are gonna talk about CSP (Customer service point) for the person who wants to open a CSP of any bank, so for all of you this article is gonna be very informative, the biggest reason for that is I have given all the information for those people who wants to open a CSP

If you have applied for any bank whether it is for SBI (State Bank of India), BOB (Bank of Baroda), or maybe for PNB (Punjab National Bank) this process is almost for all those banks that’s why I have covered total 5 points like:

  1. What is CSP (Kiosk Banking)?
  2. What is the need for CSP?
  3. What are the services you can provide through CSP?
  4. Eligibility criteria for CSP?
  5. Investment requirements for CSP?

What is a CSP?

The CSP plant has started via RBI (Reserve bank of India) to provide almost all the banking services to common people & the main purpose to open a CSP is to reduce the rush in all banks, it is also known as booth, stand center and Counter as well, and through this, banks provide commissions to these CSP

What is the need for CSP?

As you know the day-by-day rush is getting concerned for banks also as the government pushing banks to open Jan Dhan Yojana accounts that’s why the banks are getting so much pressure to maintain these loads and because of this banks are not able to give services very good to their customer that’s why RBI has started this plan so far, also there is a small benefit where both customer & banks are getting CSP benefits is that where directly a bank cannot open a branch they can open a CSP instead of it so can all customer get the services without struggling,

What are the services you can provide through CSP?

Currently, all the CSPs provide banking services like Account opening, cash deposit, cash withdrawal, linking PAN Card, Mobile Number, Aadhar Card, ATM Card, passbook printing, Insurance services, RD & FD Accounts, APY (Atal Pension Yojana), Pradhan Mantri Suraksha Bima Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana, KYC Updating, Money Transfer, CSP technology and so many more and also on all these services banks provide commission to these CSP,

Documents/Eligibility Criteria:

First of all, you will need a police verification/character certificate not older than three months cause it is a matter of money transfer and then you have to issue an authorization letter from the bank also you have to make that there is no CSP already in your otherwise your application may get rejected after you will need PAN Card, Id proof (Voter id/Driving license/Passport), Shop Address Proof (Ownership/Rent agreement), Bank Details, Resident address proof (Electricity bill/Ration Card), age must be above 18 years as per your documents, Qualification 12th Pass with all these documents you can open a CSP,

Investment Requirement:

Investment of Rs. 1.50 lacs for store setup is approximate, I have not included the cost of shopping these stats only for the store setup you will need at least office space 150sqft to 200sqft to open a CSP, Computer/laptop, printer, fingerprint scanner, Net Connection it would be better for backup if you purchase inverter/UPS and lastly interior setup appear CSP technologies

Now, let’s talk about the Commissions and how much a CSP can earn for reference I have taken the SBI commission chart:

  • Account opening (Rs. 15/- to Rs. 20/-)
  • Opening of RD account (Rs. 15/- per account Minimum deposit – Rs. 50/-)
  • Opening of STDR (0.50% of amount deposit Maximum Rs. 50/-)
  • Cash deposit transaction up to Rs. 10,000/- (0.25% Minimum Rs. 2/- Maximum Rs. 8/-)
  • Cash deposit transaction up to Rs. 10,000/- to Rs. 15,000/- (Rs. 10/-)
  • Cash deposit transaction up to Rs. 15,001/- to Rs. 20,000/- (Rs. 12/-)
  • Deposit in the loan (0.40% Minimum Rs. 2/- Maximum 10/-)
  • Cash withdrawal transaction amount Rs. 100 & above up to Rs. 10,000/- (0.5% Minimum Rs. 3/- Maximum 15/-)

These are the basics of the commission chart which is given here but to see the accurate commission chart you have to contact the bank only they can provide you the accurate stats of commissions,

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love How to open a CSP

what is CSP?

CSP stands for “Customer Service Point“. It is a banking service model introduced by the Government of India to provide basic banking services to customers in remote areas where bank branches are not present. CSPs are usually set up in partnership with authorized entities, such as individuals, retail outlets, or organizations, who act as intermediaries between the bank and the customers.

CSPs offer a range of banking services, including account opening, cash deposits and withdrawals, fund transfers, balance inquiries, and bill payments. They function as a last-mile connection between the bank and customers, especially those in rural and semi-urban areas, who may not have access to formal banking channels. CSPs help to promote financial inclusion by providing access to basic banking services to all sections of society.

CSPs are typically operated through a computerized system, and the authorized entity is required to comply with certain guidelines and regulations set by the bank and the regulatory authorities. The CSP model has been adopted by several banks in India, including public sector banks like State Bank of India, Bank of Baroda, and Punjab National Bank, as well as private sector banks like ICICI Bank, HDFC Bank, and Axis Bank.

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