1. MSSRF FOUNDATION
Roll of Policy for ICT Enabled
Development.
29th October 2012
Santanu Sengupta
ACMFI
African Centre for Mobile Financial Inclusion
santanu@acmfi.org acmfi2010@gmail.com

2. o Financial Inclusion has been the buzz word
for the governments , across the world, since
the onset of the global financial crisis.
o Developed world are revisiting crisis after
crisis. It’s now the beholden duty for
developing nations led by BRICS & South Africa
To keep the growth wheel churning for the
stability of the world
o There is renewed backlash as S&P
downgrading US & Europe is revisited with
crisis looming in mainland Euro zone

3.  ICT usage deepening will help attaining a comparative financial inclusion at an
affordable, timely and efficient manner where even the most laggard sections
have adopted the services quickly, contributing to social capital asset in the form
of saved transaction costs, optimising services and liquidity acceleration in
compounded return in savings, resulting in tangible GDP growth.
 Experiments show different platforms and designs amidst the varying regulatory
norms indulged in innovative proliferation of mobile money in many forms.
 Kenya’s M pesa to M Kesho journey have been outstanding, with remittances
within the country touching almost unprecedented scale, contributing almost
10% to over all GDP.
 This experiment was carried out in the most structured manner in Brazil as far
back in 1999-2000 in their successful usage of the Postal Union & agent led
models in ushering in the much needed CCTs.
 During the crisis as we are trying to replicate it here in the form of MNREGA
and now Direct Cash transfers, in order to save transaction cost, subsidy, and
most of all to plug the Leakages . .

4.  Having a bank account does not mean financial inclusion for the marginalised
community, but it’s a fact that with more disposable income the have-nots move
up in the social stratum and financial need and spending increase
 It is uniformly acknowledged that the financial needs and usage start from the
tiniest of transactions in the lowest stratum of the society in the developing or
developed nations - in the form of transfers and purchases as a medium of
exchange from the earliest days of civilisation since ‘barter.
 Today big developing nations are still, cash based society. Those professing to
go Cashless gradually, as in UK , are about to shelve cheques by 2014, and
forced to defer till 2019 in shelving the agenda altogether to revisit the same at
a later date.
 Financial inclusion is as varied from CGAP to our own by the venerable Dr
Rangarajan Committee’s definition in a broader sense as - access to credit, as
per their need, timeliness and at a cost affordable to them. Of course the price
discovery of such services vary from one nation to another, as per PPP
parameters

7.  In the developed nations also due to the financial crisis there
are deprived and marginalised people, affected most by the
downturn. Why is it so? Despite TAI of US only the second
best in the world after Scandinavia .
 Why is US thinking the need for a high speed rail network
now after China became the toast of the world It heralds
transparency, less tinkering in delivery of goods and service to
people.
 As nations states develop the gaps & fissures within surface
and it is necessary to readjust and restructure accordingly of
changing pattern of need

8.  US is one of the early adopters of ICT from their military
usage & then thrown open to public and the TAI has been
always on the highest amongst nations.
 ICT can act as great spur in the revolutionary fervour.
SMS & Tweets have galvanised the pink revolution
sweeping across North Africa and the Arab World.
 Hafiz Pasha described the increasing use of ICT by
governments in the Asia Pacific, as the fastest growing
region in the world for the last decade or even before as
planned process, He described it thus: .

9.  Information and Communication Technologies (ICTs) are now widely
accepted by developing countries as a critical tool in their efforts to
eradicate poverty, enhance human development, and achieve
Millennium Development Goals (MDGs). Recognizing this untapped
potential, infrastructure initiatives and development strategies
incorporating ICT are being increasingly promoted and launched
across the Asia-Pacific.” Hafiz Pasha UN Assistant Secretary-General,
UNDP Assistant Administrator, Director, Regional Bureau for Asia and
the Pacific
 Future references will further emphasise the correlation of ICT &
development of the countries & the relative inclusivity of such
growth.” . A study claims that ICT diffusion accounts for up to 90
percent of the increase in the Human Development Index (HDI)
observed in some nations. It is clear that ICTs have an important role
to play in fighting poverty and in achieving the MDGs”

10.  The information economy for the benefit of all, requires vision,
discipline, planning, and method. The vision sets the stage and the
agenda is defined by a strategic plan, followed by an action plan.
 There are three aspects that need to be considered from a strategic
planning standpoint.
 The first is the importance of maintaining a human
development perspective and focusing on the achievement of
benefits for people through the appropriate use of ICTs.
 The second step is defining the process, agreeing on the
steps involved, and managing this process.
 The third aspect is the impact of changes in the international
economy, especially the telecommunications sector, on the
diffusion of technology and of ICTs, in particular.

11. Issues related to human development are
complex and interlinked, a strategic planning
is needed for the following reasons:
 To instil rigour in the ICT planning process;
 (What are we trying to do? What is the ICT
strategy for and why? And
 who is it for?
 What is the ultimate vision or goal? What are
the objectives to achieve the goal? How do
these help countries meet MDGs?

12.  To help identify and consider the main stakeholders and
their concerns;
 To help identify and understand pertinent issues;
 To help compare and contrast practices (especially best
practices);
 Back drop to financial inclusion as conditioned to ICT
intervention.
 The relative costs comparison can be a little way word in
other illustration. But we take it on its face value to arrive at
a price discovery model vis vis efficacy & ease of delivery. It
is to be noted that all channels are ICT based & not normal
branch banking except in the first picture.

18. • Right now world over Financial Inclusion is the
buzzword.
• Mobile inclusion has been phenomenal but
almost 41% of the remain unbanked.
• So UN,G20, world bank, GSMA and most
development organisations are working together
to make FI a success story
• In India there is now a formal committee headed
by Dr K C Chakraborty , Dy Governor RBI to
speed up Financial Inclusion.

20. • Already Aadhaar enabled payment is underway and has been
launched on 20th October formally by Hon PM Dr Manmohan Singh
in Rajasthan
• UID the biggest citizen Identity management scheme is targeting to
get at least 50 Cr Indians enrolled by 2014
• Soon there will be more ICT enabled bank branches, more ATMs,
and more POS and cash dispensing machines for the unbanked
• Plus mobile based FI
• Nothing would have been possible but for the Gigantic efforts put by
all of us and the Government.
• And MS Swaminathan & MSSRF has contributed & done its bit in
paving the way forward