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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