WelcomePresentation onA.P. SMART CARD PROJECTA.V.V. PRASADAdditional Commissioner of Rural DevelopmentGovernment of Andhra Pradesh
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 mainstream banking andfinancial services to the poorest of the poor by usingtechnology based solutions. Ensure efficient and timely transfer of government benefitsto 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 outpost in each village.
Architecture Banks lay down the entire infrastructure. Banks will select Service Providers and BusinessCorrespondent through competitive bidding. Service providers to provide technology.-- Technology includes PoS equipmentbiometric reader and Printer. Business Correspondent delivers financial services topeople. PoS is manned by CSPs (preferably from SHGs)
Technology (M/s A Little World ) Based on new generation Near Field Communications (NFC) mobilephones; contactless RFID smart cards and integrated biometrics. Alternate option of attaching fingerprint scanner + card reader to a PC orPoS.Can also be deployed on PCs -by adding a NFC card reader +fingerprint scanner (both USBperipherals costing about Rs.6000)
Key- process1. Enrolment– Department gives list of beneficiaries – SSP & NREGS– Concerned bank / Financial institution conducts anenrolment camp in the village.– GPs, VOs assist the organization in identification ofbeneficiaries.– 6/ 10 finger prints, photo and other details of thebeneficiary captured.– An account will be opened in the name of beneficiary.Contd..
Key- process2. Preparation and issue Smart Card.– Data collected during enrolment is encrypted on thecard including biometric. (Encrypted Java smart cardwith 32 KB memory).– Card is delivered to the beneficiary in the village withinthree weeks.Contd..
Key- process3. Business Correspondent (BC) & Customer ServiceProvider (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. Release of funds & Cash delivery– Government issues instructions to the Banks / FIauthorizing payment.• List of beneficiaries and authorized amount willbe given.– Individual account of beneficiary is credited.– Cash is physically transported and delivered in thevillage to CSP.
Key- process5. Disbursement– CSP sits at pre-designated government premises usuallyGP building etc.– Beneficiary approaches with card.– Card is inserted in the card reader and identity ofbeneficiary is established.– Based on the a/c balance of the beneficiary as displayedon 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 to TSP &Bank Servers.– Disbursement data is shared by Bank to MNREGAServer & SSP Server.
Roles and responsibilitiesRole of Rural Development Department– To lay down policy & govern the project.– To allot areas to Banks– Put in place appropriate systems and procedures for transfer ofpayments.– To conduct Monthly Review Meetings at State level
Roles and responsibilitiesRole of Banks– MoU with Government, Technology Service Provider &Business Correspondent.– Appoint, train and supervise BCs.– Open SB account and issue Smart Card to beneficiaries.– Credit pensions / wages to the account of the beneficiaries– Maintaining centralized database.– Provide all required MIS to Govt from time to time.
Role of District Collector:– Oversee the entire implementation process.– Conduct review meetings with Banks, TSP, BC &MPDOs.– Identify bottlenecks and inform to the StateGovernment.Roles and responsibilities
Roles and responsibilitiesRole of DRDAs– Support enrolment of beneficiaries– Provide information about SSP beneficiaries.– Facilitate the VOs/SHGs in Identification of CSPsfor BCs.Contd..
– Provide copies of Pension payment orders by 25thofevery month.– Transfer pension amount to the bank a/c– Consolidating MIS reports and forwarding to Headoffice.– Pay 2% service charges on the value of pensionbenefits disbursed in the district by the Bank afterreconciliation.– Monitoring and periodical review.Contd..
Roles and responsibilitiesRole of DWMAs– To provide list of wage seekers for enrollment.– 1% service charges with e-pay order and 1% servicecharges after reconciliation to the Banks.– Ensuring smooth payment of wages.– Consolidating MIS reports and forwarding to Headoffice.– Conducting regular review meeting with the MPDOs,Banks & Smart Card agencies.
Roles and responsibilitiesRole of MPDOs.– Schedule & organize enrolment process.– Send electronic copy and hard copy of Wage paymentorders to the Banks.– Transfer funds to the bank A/c– Supply 2 copies of physical acquittance– Ensure smooth disbursement of SSP and wages.– Conduct Review Meetings at mandal level
Roles and responsibilitiesRole of Business Correspondent (BC)– Responsible for money evacuation from Bank to CSP &from CSP to Bank.– To contract, position & supervise CSPs.– Provide training and handholding to CSPs.– Ensure smooth disbursement of pensions and wages.– To reconcile with Bank & Govt.
Roles and responsibilitiesRole of Customer Service Provider (CSP)– Operate the terminals & extend services at village level.– To disburse the pensions once a month.– To disburse NREGS wages once in a week.– To pay cash and issue Transaction Print out.– To upload information on a daily basis.
Phase-I districtsWith service area approachSn. District Bank Service Provider1 Chittoor CORPORATION INTEGRAINDIAN BANK INTEGRADept of Post APOnline2 East Godavari AB ATYATICorporation FINOICICI FINODept of Post APOnlineUBI FINO
Phase-I districtsWith service area approachSl.No.District Bank Service Provider3 Karimnagar ICICI FINOSBH HCLUBI FINO4 Mahaboobnagar APGVB ALWICICI FINOSBH CORAMANDALDept of Post APOnlineUBI FINOCONTD
Phase-I districtsWith service area approachSl.No.District Bank Service Provider5 Medak APGVB ALWCorporation FINOICICI FINOSBH HCLDept of Post APOnlineUBI FINO6 Warangal AB ALWAPGVB ALWAXIS FINOCorporation FINOSBH ALWDept of Post APOnlineUBI ALWCONTD
Phase – II districts – one bank one districtmodelSl.No.District Bank ServiceProvider01 Visakhapatnam Union Bank of India FINO02 West Godavari Union Bank of India FINO03 Prakasam Union Bank of India FINO04 Srikakulam Andhra Bank ATYATIDept.of Posts APOnline05 Guntur Andhra bank ATYATI06 Khammam APGVB ALW08 Adilabad State Bank of Hyderabad HCL
Phase – II districts – one bank one district modelSl.NoDistrict Bank ServiceProvider09 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 INTEGRADepartment of Posts. APOnline16 YSR Kadapa ICICI FINO17 Hyderabad ICICI FINOSPS Nellore ICICI TCSCONTD
Overall progress at a glance No. of districts : 22 No. of GPs where project is under way. : 21861 Target no. of benfs. under SSP & NREGS : 207.26 lakhs No. of benfs, enrolled : 169.82 lakhs No. of cards issued : 142.57 Lakhs
Overall progress at a glanceNo. of Districts Enrollment started : 22SSP NREGA TotalNo.of GPs Enrollmentstarted20208 20435 20435Target (No.ofBeneficiaries)70.96 lakhs 136.30 lakhs 207.26 lakhsNo. of beneficiaries enrolled 58.46 Lakhs 111.36 lakhs 169.82 lakhsNo. of cards issued 47.46 lakhs 95.10 lakhs 142.57 lakhsGPs Payment started 17739 19823 19823