Banking & Finance 10 May 2025

CSP - Customer Service Point

In Indian banking, CSP stands for Customer Service Point.

A Banking CSP is a mini branch or kiosk operated by a Business Correspondent (BC)—an individual or entity appointed by a bank to offer basic banking services, especially in rural and semi-urban areas where traditional bank branches are not easily available.

Services provided by a Banking CSP

• Cash deposit and withdrawal
• Account opening (especially PMJDY – Pradhan Mantri Jan Dhan Yojana accounts)
• Money transfer (Domestic Money Transfer, DMT)
• Balance enquiry and mini statement
• Aadhaar Enabled Payment Services (AEPS)
• Utility bill payments (electricity, mobile recharge, DTH recharge, etc.)
• Direct Benefit Transfer (DBT) disbursements (government subsidies, pensions, etc.)

Why are CSPs important?

• They bring banking services to unbanked and underbanked populations.
• Reduce travel time and cost for rural customers.
• Promote financial inclusion in India.

Example:

A person running a CSP outlet in a village, partnered with SBI or PNB, allows locals to withdraw or deposit money using Aadhaar authentication or passbooks — even if the nearest bank branch is 20 km away.

If you’re asking from the business opportunity angle — many people start CSP outlets as a small business to earn commissions on transactions.

How to open a CSP outlet?

• Eligibility criteria:
• Age: 21 years and above
• Education: Minimum 10th pass (some banks prefer 12th pass)
• Basic computer knowledge
• A clean financial & police record

Requirements:

• Small shop or space (100–150 sq. ft) in a good location
• Computer or laptop
• Printer & scanner
• Internet connectivity
• Biometric device (fingerprint scanner)
• Passbook printer (optional but helpful)

Application process (2 routes):

• Directly with a bank: Contact the local branch of banks like SBI, PNB, Bank of Baroda, etc., and express interest to become a Business Correspondent / CSP.
• Through CSP service providers (BC aggregators): Companies authorized by banks to appoint CSPs — like Fino Payments Bank, PayNearby, Roinet, Oxygen, Spice Money, etc.

Documents required:

• Aadhaar Card, PAN Card
• Address proof
• Educational certificates
• Passport-size photos
• Police verification certificate
• Bank account details

Earnings of a CSP outlet

CSP operators earn commission and incentives based on transactions. Approximate monthly income can be:

1. Service Average Commission
2. Cash withdrawal / Deposit ₹0.50 to ₹2 per transaction
3. Account opening ₹15–₹25 per account
4. Money transfer (DMT) ~0.5%–1% of transaction value
5. Aadhaar Enabled Payment System (AEPS) ₹5–₹15 per transaction
6. Bill payments / Recharge ₹2–₹10 per transaction

Average monthly income = ₹10,000 to ₹30,000 (depending on footfall and services)

Top banks that appoint CSPs:

• State Bank of India (SBI CSP)
• Punjab National Bank (PNB CSP)
• Bank of Baroda (BOB CSP)
• HDFC Bank CSP
• ICICI Bank CSP
• Axis Bank CSP
• Indian Bank
• Union Bank of India