Reliance Money goes rural, eyes 10,000 outlets in 5,000 talukas

Reliance Money, the financial products distribution company of Anil Dhirubhai Ambani Group, today launched services in rural markets with an initial target of tapping 1,000 talukas across five states in the country.

The broking and distribution arm of Reliance Capital also announced its tie-up with the Rural Relations, a rural consumer relations organisation, for identifying partners and locations for rolling 10,000 outlets in over 5,165 talukas across the country by the end of this fiscal. A taluka consists of about 1,000 villages on an average.

Rural customers will have to pay an annual premium of Rs 25 for insurance policies, while systematic investment plan of Rs 50 and Rs 100 per month is available for mutual funds.

"This is our effort to take financial instruments to rural masses and give them an opportunity to invest in various financial products like mutual funds, stocks and gold coins and secure their lives and other valuables by taking adequate insurance cover," Reliance Money CEO and Director Sudip Bandyopadhyay told reporters here.

Reliance Money is looking to open over 20,000 outlets and 10,000 kiosks across the country by the end of this year. Out of the total outlets, 10,000 would be for rural markets while the remaining half would be in urban areas.

The company, at present, has presence in 727 cities and towns across India. The new initiative would entail Rural Relations scanning over 100,000 people in 5,000 towns and identifying 10,000 franchisees for Reliance Money over the next one year.

"We have already covered 1,000 talukas and are ready to roll out Reliance Money outlets in these locations, starting with Saswad and Bhor today," Pradeep Lokhande, founder of Rural Relations, said.

The five states that have been covered are Madhya Pradesh Maharashtra, Gujarat, Andhra Pradesh and Karnataka. By the end of this year, Reliance Money will extend its presence in Tamil Nadu, Chhattisgarh, Uttar Pradesh, Uttarakhand and Rajasthan.

As per the arrangement with Reliance Money, Rural Relations will identify youths willing to expand their horizon in distribution of financial products and services.

"This initiative will enhance our customer servicing capabilities, facilitate customer acquisition process and provide customers additional locations for completing their financial transactions," Bandyopadhyay said.

Reliance Money was the first to deploy Internet-enabled retail kiosks for trading to tap more customers and provide them access to a platform for financial transactions.

It plans to deploy over 10,000 such kiosks in the country by the year end that would enable customers to transact in, shares, equity and commodity derivatives and mutual funds among others.