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eGov KE Lonavla 2014 - Pradeep Kumar, CEO, Vakrangee Limited
eGov KE Lonavla 2014 - Pradeep Kumar, CEO, Vakrangee Limited
eGov KE Lonavla 2014 - Pradeep Kumar, CEO, Vakrangee Limited
eGov KE Lonavla 2014 - Pradeep Kumar, CEO, Vakrangee Limited
eGov KE Lonavla 2014 - Pradeep Kumar, CEO, Vakrangee Limited
eGov KE Lonavla 2014 - Pradeep Kumar, CEO, Vakrangee Limited
eGov KE Lonavla 2014 - Pradeep Kumar, CEO, Vakrangee Limited
eGov KE Lonavla 2014 - Pradeep Kumar, CEO, Vakrangee Limited
eGov KE Lonavla 2014 - Pradeep Kumar, CEO, Vakrangee Limited
eGov KE Lonavla 2014 - Pradeep Kumar, CEO, Vakrangee Limited
eGov KE Lonavla 2014 - Pradeep Kumar, CEO, Vakrangee Limited
eGov KE Lonavla 2014 - Pradeep Kumar, CEO, Vakrangee Limited
eGov KE Lonavla 2014 - Pradeep Kumar, CEO, Vakrangee Limited
eGov KE Lonavla 2014 - Pradeep Kumar, CEO, Vakrangee Limited
eGov KE Lonavla 2014 - Pradeep Kumar, CEO, Vakrangee Limited
eGov KE Lonavla 2014 - Pradeep Kumar, CEO, Vakrangee Limited
eGov KE Lonavla 2014 - Pradeep Kumar, CEO, Vakrangee Limited
eGov KE Lonavla 2014 - Pradeep Kumar, CEO, Vakrangee Limited
eGov KE Lonavla 2014 - Pradeep Kumar, CEO, Vakrangee Limited
eGov KE Lonavla 2014 - Pradeep Kumar, CEO, Vakrangee Limited
eGov KE Lonavla 2014 - Pradeep Kumar, CEO, Vakrangee Limited
eGov KE Lonavla 2014 - Pradeep Kumar, CEO, Vakrangee Limited
eGov KE Lonavla 2014 - Pradeep Kumar, CEO, Vakrangee Limited
eGov KE Lonavla 2014 - Pradeep Kumar, CEO, Vakrangee Limited
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eGov KE Lonavla 2014 - Pradeep Kumar, CEO, Vakrangee Limited

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  1. Relevance of Financial Inclusion for Business and Technology e Governance Knowledge Exchange Meet at Hotel Fariyas, Lonavala Mr. Aditya Jha,+91 9167226385 Mr. Manojkumar Latpate, +91 9167766747 2nd August 2014
  2. Introduction to Vakrangee • NSE BSE listed public limited company • #1 UIDAI Enrolment Agency - 4.6 Crore • Common BC for Maharashtra and Rajasthan Clusters • Successfully Implemented CSC project in 14 districts of Rajasthan and 2 Districts of Punjab • Successfully implemented E Mitra at 5 Districts in Rajasthan • LSK Project in Madhya Pradesh • IGRS Project in 2 Divisions in Maharashtra • Flagship Project of Voter Identity Card and Voter’s List • Land Record Digitization of Phillipines • 24 years of Sustained Brilliance in the e-Governance and Citizen Centric Projects
  3. What is Financial Inclusion “Financial inclusion is the process of ensuring access to appropriate financial products and services needed by all members of the society in general and vulnerable groups in particular, at an affordable cost in a fair and transparent manner by mainstream institutional players” - RBI
  4. The FI Journey thus far 4 Private & Confidential • All banks to have FI Gateway • Complete control • Standard compliant front end application
  5. Process • Bank Led Model – Mainstream Banking Institutions • Branches • Business Correspondents – Other Intermediaries • Telcos • Technology Partners • MFIs/NBFCs/NGOs • Serve the important objective of Bringing People and Communities in the fold of Financial Inclusion
  6. Bank Server Bank Branch New Bank Account Enrolment Process KYC Documents VLE Finger print Capture Photo Upload KYC Documents Note: 1) BCA has to verify the id proofs correctly before filling KYC form 2) While capturing fingerprint and photo, BCA has to make sure that the photos and finger print are Approve captured correctly else repeat the process Bank Manager Vakrangee Limited 6
  7. Fund Withdrawal Process VLE Customer ‘X’ Withdraw or Deposit? Receipt Finger print Withdraw Amount VLE Settlement A/C Customer Account (+ve) ‘X’ Amount (-ve) ‘X’ Amount Vakrangee Limited 7
  8. Vakrangee Accounts LIC Division Office New LIC Enrolment Process VLE Upload Vakrangee Server POI / POA / Photo Enrolment Form Receipt Note: 1) BCA has to verify the ID proofs and correctly fill the form LIC Officer Policy Bond / FPR Approve Vakrangee Limited 9
  9. Vakrangee Mart – Infrastructure Setup Equipment List Laptop + Charger Web Camera Printer – Scanner – Copier DG Set Furniture & Fixtures VSAT Connection Banking POS Machine Vakrangee Limited 10
  10. Technical Architecture of Financial Inclusion
  11. What is Financial Inclusion ? • Appropriate Financial Products and Services • Affordable Costs • Society in General and the Vulnerable in Particular • Society in General and the Vulnerable in Particular • Mainstream Institutional Players • Initiatives & Constraints • Challenges of Rural Branches • How Bank Led BC Model Can Help The Branch ? • Risks in adopting BC Model • A Model BCA Outlet • Ways to Adopt
  12. Appropriate Financial Products and Services • Majority require – A basic No Frills Savings Account – A basic ‘No Questions Asked’ Credit – A basic Insurance of Life • Many require – Fixed Deposits – Recurring Deposits – KCC – GCC – Other Loans • Housing • Consumer • Small and Medium Business
  13. Society in General and the Vulnerable in Particular • Vulnerable – Inability to withstand the effects of a hostile environment • Resources required to withstand – Money • Savings • Earnings Growing at par with Inflation • Future Protection – Knowledge • Possible hazards • Remedies
  14. Affordable Costs • For the Consumer – Cost not to exceed the Benefit – Costs have been a primary reasons for exclusion • For the Provider – Pricing of products and services not to be less than cost – Technology has made it possible to match the expectations • Telecommunication • CBS • Power
  15. Fair and Transparent Manner • Success of a System depends on its acceptance and credibility – Delivery of Service • Should be fair to the consumer – Provide satisfying evidence – Provide an opportunity to escalate • Should be transparent to – Stakeholders » Regulator » Government » Bank Management » Public in General
  16. Mainstream Institutional Players • Banks – Commercial – Regional Rural – Cooperative • LIC • GIC and its Subsidiaries
  17. Initiatives • SHG-Bank Linkage Model, one of the largest micro finance models in the world, under which 4.79 million SHGs have been credit linked, covering 97 million poor households (till March 2012) • Core Banking Platform • Substantially liberalised the BC based service delivery model in phases. • Permitted domestic scheduled commercial banks to freely open branches in Tier 2 to Tier 6 centres. • Mandated banks to open at least 25% of all new branches in unbanked rural centres. • Substantially relaxed the Know Your Customer (KYC) documentation requirements for opening bank accounts for small customers. • Encouraged Electronic Benefit Transfer for routing social security payments through the banking channel. • Pricing for banks totally freed; Interest rates on advances totally deregulated. • Separate programme for Urban Financial Inclusion initiated.
  18. Constraints • Demand side – Low Literacy Levels – Irregular Income – Frequent Micro Transactions – Lack of Trust in Formal Banking System – Cultural ( Gender and other values) • Supply side – Outreach – Regulation – Business Models ( High Fixed Costs) – Limited number of Service Providers – Products and Services and Not Aligned – Age Factor – Bank Charges
  19. Challenges of Rural Branches • Large Operational Area • Acute Shortage of Staff • Low Value Customers • Social Schemes • Maintaining Profitability and Productivity • Local Geographical and Political stresses
  20. How Bank Led BC Model Can Help The Branch • Have extended arms in relatively remote areas – Add a customer base without the conventional acquisition cost – Achieve the objective of 100 % Inclusion – Greater and better supervision of customers – Drive small value transactional crowd away – Reduce the cost of Banking for the customers – Improve Productivity and Profitablity
  21. Risks in adopting BC Model • Continuity – Attrition – Infrastructure Disruptions • Uniform Experience to the Customer – Products and Services – Charges • Acceptability and Reputation of the BCA
  22. A Model BCA Outlet • Permanent Outlet • Infrastructure – Power Independent – Network Independent • FI Application integrated to the Sponsor Bank • Biometric Authentication • AEPS compliant • IFIS Compliant
  23. Ways to Adopt • Train the BCA – Familiarise with Products and Services of the Bank – Familiarise the BCA with Ethics and Code of Conduct – Make him aware of the Organizational Vision and Mission of the Bank • Close Supervision – Meet the BCA frequently at his place – Let the people know that BCA is your representative just as you would do for your staff – Inform him regularly about the changes that are taking place • New Products • Interest Rates – Best to give him Targets ( just like any other staff member) and apprise him of his achievements and shortfalls

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