eOdisha Summit 2014 - Financial Inclusion Innovations & Initiatives - K M Trivedi, CGM, State Bank of India (SBI), OdishaPresentation Transcript
Innovations & Initiatives
What is Financial Inclusion
comprehensive and holistic process
of ensuring access to financial
services by all the people in a fair,
transparent and equitable manner at
Why Financial Inclusion (FI)
Nearly 60% of the population in Odisha do not
have access to the basic financial services.
Need for making banking and payment
services available to the entire population at
affordable cost and without discrimination.
The financial inclusion helps people to benefit
from the overall socio-economic growth and
development of the State.
Empowering people to take their financial
decisions in the best possible way for
Benefits of encouraging Financial Inclusion
To the Customer:
Affordable access to
practically at the
Availability of Govt
Benefits direct in bank
Loans and Remittance
Release from the
clutches of local
Ride on the Brand
name of the Bank
Customer base for
its own activities
other than banking
Low cost CASA
Reaching out to
migration to urban
5 A’s of Financial Inclusion
Availability – Point of presence & Choice of
Awareness – Information, Education, Communication
Acceptability – Value desired by the customers
Affordability – Value for money
Accessibility – Convenience, lower entry thresholds
Initiatives to facilitate FI
● Liberalised KYC norms
● Allowing engagement of BC/BF by banks for
providing the last mile banking and financial
● Liberalised branch opening by relaxing branch
● Introduction of new banking products such as “Nofrills” accounts (Basic Savings Bank Deposit
Accounts), Small SB Accounts, loan products like
FIP Initiatives of SBI in
● Covered 833 villages with population >2000 by March
● 2685 villages with population below 2000 have been
covered till end of December 2013.
● 2775 more villages will be covered by March 2014.
● Opened 588 rural and semi-urban branches to reach
hinterland of Odisha.
● Have plans to open 27 more branches in unbanked
villages by March 2014.
● More than 800 CSPs of SBI are also operating in
villages. 1000 more will be opened by March 2015
Financial Inclusion: Current
ATM Cards to DBT
Setting up of
Scalability and sustainability (Business Continuity,
Disaster Recovery, etc.)
Technology upgradation is happening at faster pace but
the functionality of BC delivery platform at front-end has to
be simple and user friendly.
Managing multiple and evolving technologies involves
Viability of BC channel
Engaging CSPs in small villages remains unviable.
Acceptability of BC model in rural masses.
Many BC outlets are inactive.
Attrition of CSPs.
Around 60% of accounts opened through BC channel are
Low Business Volume
Low transactions value
Higher capital expenditure in technology & BC roll out.
Overall, Viability remains critical in low potential centres.
Network connectivity in many villages is very poor or
Stable supply of electricity for operations
Law and order position in certain parts of the State.
14 backward/Left Wing Extremism (LWE) affected district
in SBI’s area of operations.
SHGs formation slowing down
Micro Finance Institutions (MFIs)
are slowly adjusting to
Slow progress in Aadhaar enrolment and seeding of
Risks associated with outsourcing
Reputation risk (for poor/discontinued service, frauds, misselling)
Cost of movement of Cash
Risk associated with movement and retention of cash
Financial Learning Centres
Financial Literacy is having basic knowledge of
managing one’s own money and developing thrift
‘A rupee saved is a rupee earned.”
A person who is financially literate can spend wisely,
use scarce resources more effectively.
We have 19 FLCs in the state to impart the knowledge
of the need for and benefits of saving in the formal
Conducted 281 programmes for 10373 villagers.
Conducted audio-visual shows highlighting the risky
nature of chitfund and why formal financial institutions
should be preferred for saving.
FI Products through BCs
SB cum OD
Extensive use of ICT by SBI
● Internet based Kiosk Banking platform for realtime transactions.
● Micro ATM or “Cash at POS” operating on GPRS.
Already 443 of such POS machines are in use by
the BCs of the Bank. Also issued so far 55600
RuPay FI debit cards for use in ATMs and POS
● Mobile phone based handheld devices for banking
● Personal Accident Insurance cover at reasonable
Cash at POS
Debit card and POS machine
Kiosk Banking & POSAccessories
Achievement of SBI in
MARCH ’11 MARCH ’12 MARCH ’13 DEC
thru Br &