3. (EBT)
G2P Payments (EBT)
G2P Payments mainly comprises of
Social
Welfare
Schemes
Social Transfer of Social Security Benefits
Security • Pension
Benefits
Cash Disbursement under Social Welfare
Schemes
Subsidy • Wage Payments
Subsidy
• Direct Cash Subsidy
G2P Payments
(EBTs)
3
4. (India)
Evolution of EBTs (India)
Government Prior to CBS Post CBS Today
Funds started flowing Funds flows
electronically to the electronically right up to
Value Chain of G2P Payments
point CBS enabled the beneficiary
The funds flowed Bank branches were
from the available • Funds are transferred
Government through Banks except
passing through “Last Mile”
the various
intermediate • BC’s opens
stages up to the beneficiary bank
last beneficiary in accounts and credits,
cash / cheque disburses in these
mode “Last mile” delivery accounts on behalf of
was still done using “Partner” Banks
Cash / Cheque mode
Beneficiary 4
5. Need to move to EBTs
(India)
(India)
Pay the right beneficiary, the right amount at the right time by
Uniquely identifying & authenticating beneficiaries
Eliminating beneficiary Ghosts & Phantoms
Plugging leakages (Siphoning of Cash)
Preventing intermediaries from taking advantage of vulnerability of beneficiaries
Cutting down the delay & Administration Cost in G2P payments
Can provide a major boost to realize the vision of a “financially included &
financially literate”
5
7. BCs Role - Enablement of
EBTs
Opens Bank Accounts of the beneficiaries
STEP – 1
(Enrollment) Captures biometrics, to uniquely authenticate beneficiaries
Issues Smart Cards to operate the Bank Accounts
Credits bank accounts of the right beneficiary with the right
STEP – 2
amount
(Disbursement
& Disburses Cash to the beneficiary at his / her doorstep
Reconciliation)
Provides reconciliation data to Banks / Government
7
9. NREGS - Background
Job Guarantee Scheme initiated by the Government of India in 2006
Provides 100 days to wage-employment to unskilled labor
Wages are paid through Banks (or Post Offices)
Pay Orders are generated in favour of a group of workers
At the time of payment, wage slip is generated for intimation of worker
Amount is disbursed to the worker on production of wage slip
At the end of the pay cycle, all bank payments are reconciled
9
10. NREGS Process
1. Registration for Employment 3. Work Assignment
Wage seeker
registers with Work is
the local requested
Government and allocated
2. Enrollment Muster Rolls are
prepared based on
which the wages are
Worker data with
calculated and e-Pay
demographics is
Order is generated
shared by the
Govt. 4. Payment Disbursement
BC enrolls the Based on the e-Pay
workers whose order, individual
data has been beneficiary accounts
received from the are Credited
Govt.
Workers are issued a
Smart Card and their BC goes to the
Bank Accounts are doorstep of the
opened. Data is shared beneficiary and
with Govt. / Banks disburses the amount
11. Scale of EBT
Operations
States where SRCS is providing EBT Services
Million + Accounts have been opened till date
States where more than 1 mn EBT Accounts have been opened
No. of Active Accounts varies between 50% to 80% from State to State
States with high no. of Accounts opened have
A higher percentage of Active Accounts
Clearly shows EBTs when pushed can be single defining step to FI
11
13. Viability of the Model
itself
• Make the Model as “Customer Centric”
• Look towards BC as an entrepreneur
• Government needs step-in more proactively and help banks in
giving more revenue generation opportunities.
• Open more channels to BC.
• Increasing the volume of the EBTs
• Outsource the BC model to Service Providers
• Providing segment specific add-on products
• Larger sharing of the reduction in transaction costs amongst the
various players working this “ecosystem”
14. Technology is not a
Challenge
• “Customer Centric” Approach should be the focus
• It do not matter what Technology you deploy
• Mobile /POS/Smart Card/Biometric/Magnetic Stripe
• All the above can co-exist
• Technology “ecosystem” perspective it do not matter what is the
Business Model being adopted whether it is Bank led, MNO, BB
• Online and offline mode of executing transactions including ability
to seamlessly switch between the two modes
• Technology itself would not solve of Interoperability issue.
• Interoperability issue is within Banks
• Technology & human driven delivery channels
15. Customer itself
• Do the customer trust the Bank or Government itself.
• They hate current bureaucracy and process
• They feel more safe with local money lender or store keeper
• Creating awareness that the money stored in their accounts is
“safe” and can be consumed whenever required
• Educating beneficiaries on how the different financial products
can provide them a greater “ Financial or Social Security”.
16. Challenges & Way
Forward
1. Viability 3. Awareness
• Increasing the volume of the EBTs • Creating awareness that the money
• Providing segment specific add-on stored in their accounts is “safe” and
products can be consumed whenever required
• Larger sharing of the reduction in • Educating beneficiaries on how the
transaction costs amongst the various different financial products can provide
players working this “ecosystem” them a greater “security”
2. Risk 4. Technology
• Shortening the scheduled cycle of • Judicious mix of
payments to reduce risk of “Cash • Smart Cards / Mobiles / POS and
Carry” such as other devices
• Cash Loss and • Online and offline mode of executing
• Cash Theft in Transit transactions including ability to
seamlessly switch between the two
modes
• Technology & human driven delivery
channels
16
17. SR Consultancy Services
with Difference
If your mission is - SRCS can help you by -
Increase profitability
› Providing easy access to knowledge base
and efficiency by doing › Taking advantage of our delivery excellence
more with less
Respond more rapidly › Capitalizing on a broad set of offerings
and effectively to and Solution proposition
changing market needs › Utilizing our ability to quickly scale resources
Use IT more strategically › Leveraging unique innovation capabilities through
and as a driver for COE’s, Innovation Labs, and Co-Innovation Network
competitive advantage › Freeing up scarce internal resources to focus on
transformational activities
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