Welcome Presentation onSMART CARDCommissioner, Rural Development
Outline of the presentation Objectives Approach Architecture Key Process Roles and responsibilities Phase – I Phase-II Progress at a glance
Objectives To increase the outreach of main stream banking and financial services to the poorest of the poor by using technology based solutions. Ensure efficient and timely transfer of govt. benefits to the poor. Minimize the possibility of fraudulent payments. To achieve Total Financial Inclusion.
Approach To create branchless banking infrastructure. To open accounts and issue Smartcards to the poor. To begin with payments of NREGS and SSP. Banks subsequently deliver banking services. To establish a banking out post in each village.
Architecture Banks lay down the entire infrastructure. Banks will select Service Providers and Business Correspondent through competitive bidding. Service providers to provide technology. -- Technology includes PoS equipment biometric reader and Printer. Business Correspondent delivers financial services to people. PoS is manned by CSPs (preferably from SHGs)
Technology (M/s Fino) Image Receipt Generation Slot Template Arrow Key Slot to Code for starting capture the device thumb print 11001000… F button Slot to insert Operator / Customer card
Technology (M/s Little World ) Based on new generation Near Field Communications (NFC) mobile phones; contact-less RFID smart cards and integrated biometrics. Alternate option of attaching fingerprint scanner + card reader to a PC or PoS. Can also be deployed on PCs - by adding a NFC card reader + fingerprint scanner (both USB peripherals costing about Rs. 6000)
Key- process1. Enrolment – Department gives list of beneficiaries – SSP & NREGS – Concerned bank / Financial institution conducts an enrolment camp in the village. – GPs, VOs assist the organization in identification of beneficiaries. – 6/ 10 finger prints, photo and other details of the beneficiary captured. – An account will be opened in the name of beneficiary. Contd..
Key- process Contd..2. Preparation and issue Smart Card. – Data collected during enrolment is encrypted on the card including biometric. (Encrypted Java smart card with 32 KB memory). – Card is delivered to the beneficiary in the village within three weeks.
Key- process3. Business Correspondent (BC) & Customer Service Provider (CSP) – Bank / FI appoints a business correspondent. – To deliver service at GP level. – BC appoints CSP at the village level. – Training to BC/CSP. – Required hardware like Finger print reader, printer, mobile phone etc., are positioned in the village.
Key- process4. Payment – Government issues instructions to the Banks / FI authorizing payment. • List of beneficiaries and authorized amount will be given. – Individual account of beneficiary is credited. – Cash is physically transported and delivered in the village to CSP.
Key- process5. Disbursement – CSP sits at pre-designated government premises usually GP building etc. – Beneficiary approaches with card. – Card is inserted in the card reader and identity of beneficiary is established. – Based on the a/c balance of the beneficiary as displayed on the screen, cash is paid. – A receipt is generated in duplicate. – A manual acquittance also maintained. – In case of exigencies, manual payment is made.
Key-process6. Data uploading – CSP / BC uploads data of disbursements daily. – MIS report on progress of disbursement is submitted to Government.
Roles and responsibilitiesRole of Rural Development – Policy decisions are taken by the department. – Put in place appropriate systems and procedures for transfer of payments.
Roles and responsibilitiesRole of Banks – MoU with Government. – Conduct enrolment camps at village level. – Open SB account and issue Smart Card to beneficiaries. – Appoint, train and enter into contract with BCs. – Credit pensions / wages to the account of the beneficiaries and disbursement at village level. – Maintaining centralized database. – Provide all required MIS from time to time.
Roles and responsibilities Role of District Collector: – Formation of District Implementation Committee. – Oversee the entire implementation process. – Conduct review meetings every week for a period of 3 months, then have monthly meetings. – Identify bottlenecks and inform to the State Level Steering Committee.
Roles and responsibilitiesRole of DRDAs – Supporting enrolment of beneficiaries – Provide information about SSP beneficiaries. – Facilitate the VOs/SHGs in Identification of CSPs for BCs. Contd..
Contd..– Provide copies of Pension payment orders by 25th of every month.– Transfer pension amount to the bank a/c– Ensuring smooth disbursement of pensions– Consolidating MIS reports and forwarding to Head office.– Pay 2% service charges of the value of pension benefits disbursed in the district by the Bank after reconciliation.– Monitoring and periodical review.
Roles and responsibilitiesRole of DWMAs – To provide list of wage seekers for enrollment. – 1% service charges with e-pay order and 1% service charges after reconciliation to the Banks. – Ensuring smooth payment of wages. – Consolidating MIS reports and forwarding to Head office. – Conducting regular review meeting with the MPDOs.
Roles and responsibilitiesRole of MPDOs. – Shall make necessary arrangements for enrolment process. – Shall send electronic copy and hard copy of Wage payment orders to the Banks. – Transfer funds to the bank A/c – Ensuring smooth disbursement of SSP and payment of wages.
Roles and responsibilitiesRole of Business Correspondent (BC) – Shall be responsible for money evacuation. – Appoint and enter into MoU with CSP. – Provide training and handholding to CSPs. – Ensure smooth disbursement of SSP and Payment of NREGS wages.
Roles and responsibilitiesRole of Customer Service Provider (CSP) – Shall operate the terminals. – Shall disburse the pensions from 1st of every month. – Shall make payment of NREGS wages once in a week. – Shall upload information on a daily basis.
Phase-I districts With service area approachSn. District Bank Service Provider Axis FINO CORPORATION INTEGRA 1 Chittoore INDIAN BANK INTEGRA INGVB FINO SBI ALW UBI FINO Dept of Posts APOnline 2 East Godavari AB ATYATI ICICI FINO INGVB FINO SBI ALW UBI FINO
Phase-I districts With service area approach CONTDSl. District Bank Service ProviderNo. 3 Karimnagar ICICI FINO SBH HCL SBI ALW UBI FINO 4 Mahaboobnagar APGVB ALW ICICI FINO SBH CORAMANDAL SBI ALW UBI FINO
Phase-I districts With service area approach CONTDSl. District Bank Service ProviderNo. 5 Medak APGVB ALW ICICI FINO SBH HCL SBI ALW UBI FINO 6 Warangal AB ALW APGVB ALW AXIS FINO PNB ALW SBH ALW SBI ALW UBI ALW
Phase – II districts – one bank one district modelSl. District Bank ServiceNo. Provider01 Visakhapatnam Union Bank of India FINO02 West Godavari Union Bank of India FINO03 Prakasam Union Bank of India FINO04 Srikakulam Andhra Bank ATYATI05 Guntur Andhra bank ATYATI06 Khammam APGVB ALW07 Nellore State Bank of Hyderabad TCS08 Adilabad State Bank of Hyderabad HCL
Phase – II districts – one bank one district model CONTDSl. District Bank ServiceNo Provider09 Krishana Axis Bank FINO10 Rangareddy Axis Bank FINO11 Ananthpur Axis Bank FINO12 Kurnool Axis Bank FINO13 Nalgonda Department of Posts. APOnline14 Nizamabad Department of Posts APOnline15 Vizianagaram Corporation Bank INTEGRA16 Kadapa ICICI FINO17 Hyderabad ICICI FINO
Overall progress at a glance (Rural) No. of districts : 22 No. of GPs where project is under way. : 21805 Target no. of benfs. under SSP & NREGS : 188.66 lakhs No. of benfs, enrolled : 142.26 lakhs No. of cards issued : 134.57 Lakhs Amount paid : Rs.4179.84 Crs
Overall progress at a glance (RURAL)No. of Districts Enrollment started : 22 SSP NREGA TotalNo.of GPs Enrollment 20913 20294 21024startedTarget (No.of 64.60 lakhs 124.06 lakhs 188.66 lakhsBeneficiaries)No. of beneficiaries enrolled 55.27 lakhs 86.99 lakhs 142.26 lakhsNo. of cards issued 52.16 lakhs 82.41 lakhs 134.57 lakhsGPs Payment started 18249 16776 18789Amount paid Since Inception 1866.28 Cr 2313.56 Cr 4179.84 Cr