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    Financial inclusion aims to provide banking services to disadvantaged groups at affordable costs. Over 40% of Indians are unbanked, especially in rural areas. Most rural households lack access to formal credit sources. The document outlines the bank's plan to promote financial inclusion over three years by opening millions of no-frills accounts, issuing smart cards and utilizing mobile technology to expand access to banking in remote areas. Progress to date includes opening over 35 million no-frills accounts and issuing over 450,000 smart cards.

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    Financial inclusion aims to provide banking services to disadvantaged groups at affordable costs. Over 40% of Indians are unbanked, especially in rural areas. Most rural households lack access to formal credit sources. The document outlines the bank's plan to promote financial inclusion over three years by opening millions of no-frills accounts, issuing smart cards and utilizing mobile technology to expand access to banking in remote areas. Progress to date includes opening over 35 million no-frills accounts and issuing over 450,000 smart cards.

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    Financial inclusion aims to provide banking services to disadvantaged groups at affordable costs. Over 40% of Indians are unbanked, especially in rural areas. Most rural households lack access to formal credit sources. The document outlines the bank's plan to promote financial inclusion over three years by opening millions of no-frills accounts, issuing smart cards and utilizing mobile technology to expand access to banking in remote areas. Progress to date includes opening over 35 million no-frills accounts and issuing over 450,000 smart cards.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    36 views17 pages

    FI Presentation

    Uploaded by

    amiitsiingh
    Financial inclusion aims to provide banking services to disadvantaged groups at affordable costs. Over 40% of Indians are unbanked, especially in rural areas. Most rural households lack access to formal credit sources. The document outlines the bank's plan to promote financial inclusion over three years by opening millions of no-frills accounts, issuing smart cards and utilizing mobile technology to expand access to banking in remote areas. Progress to date includes opening over 35 million no-frills accounts and issuing over 450,000 smart cards.

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    of 17

    Priority Sector Credit & Rural Development Department, Head Office, Star House, Mumbai.

    Financial Inclusion

    Financial Inclusion
    Financial Inclusion is delivery of banking services at an affordable cost to the vast section of disadvantaged and low income group. Financial inclusion also means extending the banking habit among the less privileged in urban and rural India and weaning them away from unorganized money markets and moneylenders.
    2

    Financial Exclusion in India

    41% of the population in India is unbanked 40% is unbanked in urban areas 61% is unbanked in rural areas Higher in North Eastern(63%) and Eastern regions (59%) Only 14% of adult population have loan accounts 9.5% in rural areas 14% in urban areas North Eastern(7%) and Eastern regions (8%)

    (Source RBI)

    Financial Exclusion in India


    203 million households in India 147 million households in rural areas 89 million are farmer households 51.4% of farm households have no access to formal or informal sources of credit 73% of farm households have no access to formal sources of credit Share of moneylenders in debt finance has increased

    (Source RBI)
    4

    Financial Inclusion & Business Prospects

    Taking Banking Services to the Common Man Through Financial Inclusion


    Implementation of Unique Identification (UID) coupled with new technologies will expedite the process of financial inclusion in the country

    How Financial Inclusion is useful to Banks


    Extend reach to unbanked people Increase deposit base through SHGs/villagers Earnings from loan disbursements

    Help rural India by providing Microcredit


    Enables Micro Insurance Earnings through money transfers Can participate in Govt. business like NREG scheme pension disbursements etc.

    F I Solution : Features
    Customer creation No frills Saving Bank Account creation (optional) Cash deposit Cash withdrawal Loan disbursement Loan repayment Balance enquiry Funds transfer Addition of new accounts to the card Mini statement Statement of Account
    7

    Technical Requirements
    Secure identification and biometric authentication system. Local language enabled voice guided systems. Issue a printed slip as proof of transaction.

    Should work in harsh and diverse rural environments.


    Easy integration into existing Core Banking Systems. Save on Branch establishment cost. Should facilitate operation by ordinary villagers through BCs. Doorstep delivery of basic banking services at affordable cost.

    Ability to extend other services - cross selling.


    8

    Financial Inclusion Methodology


    2. Issuance of Biometric Enabled Multi-Function Card Diverse points of usage Hand-held devices

    1. Enrolment Process Data Collection System Demographic Details Biometric Details etc.

    4. Transaction data loading to Integrated Back-end system & then to CBS

    3. Financial Transactions through Field Devices Single Device supports multiple application

    Financial Inclusion with Smart Card


    GPRS/GSM/PSTN /CDMA Internet
    Transactions

    Cash deposit

    Cash withdrawal
    Loan disbursement Loan repayment

    d i gi t a l

    FI Gateway

    Funds transfer*
    Balance enquiry
    CUSTOMER

    Mini Statement Addition of new accounts to the card*


    * Not supported in Offline mode

    10

    Mobile based Financial Inclusion

    Mobile Telephone proliferated in the country very fast Mobile phones could be used to achieve financial inclusion for large number of population Mobile Device with Biometric Authentication can obviate the need for cards which are High on Cost and Maintenance

    11

    Banks Financial Inclusion Plan


    Project tenure 3 years Opening of 125 lac no-frill accounts in next three years (inclusive of 12.00 lac no frill accounts in urban area) Provision of inbuilt Overdraft in all the no-frill accounts

    Entrepreneurship credit to 67 lac households through credit products like KCC/GCC etc. 40,000 villages to be covered out of which 7400 villages to be covered by March 2011
    12

    ICT enabled Solution

    Smart Cards and Mobile based solution


    Multiple vendors Opex Model

    13

    Progress made so far


    Technology enablement IT Vendors finalised HCL , TCS and Integra Micro System P Ltd. for Smart Card based solution Integra for Mobile based solution

    PILOT has commenced with HCL (Ranchi and Thane)


    And TCS (Bhagalpur and Khandwa)

    14

    Progress made so far :


    Manpower deployment Appointment of additional Agricultural Officers devoted specially to the implementation of Financial Inclusion Plan Channel Management Partners (CMPs) appointed in 3 Zones. Appointment of CMPs in other zones is in progress Adequate no of Business Correspondents engaged

    15

    Progress made so far :


    Progress under FIP: 35.67 lac No-frill accounts opened up to June 2010

    Inbuilt overdraft facility - approx 15.00 lac accounts


    4.50 lac Smart cards issued up to June 2010 GCC/KCC issued in more than 72,000 accounts.

    16

    Future Plans :

    Pilot at Ranchi in collaboration with UIDAI. After successful Pilot project, Zones will be distributed to three vendors Names of villages assigned by various SLBCs uploaded on Banks website.

    17

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