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Welcome  A.P. SMART CARD PROJECT (Financial Inclusion for Good Governance) A.V.V.PRASAD Additional Commissioner Department of Rural Development Govt of Andhra Pradesh
Extent of Financial Exclusion ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],In million Source:  Report on Currency and Finance 2006-08 (IIMS Survey, 2007), NABARD report Households Social Group Population in ‘000 % Included % Excluded S.C 15592.6 50.23 49.77 S.T 11924.1 36.32 63.68 OBC 37043 51.42 48.58 Others 24688.4 49.42 50.58 Total 89248.1 48.64 51.36 Institution / End-March 1993 2002 2007 Scheduled Commercial Banks 246 246.5 320.9 Regional Rural Banks 30.5 36.7 52.7 Primary Agricultural Credit Societies 89 102.1 125.8 Urban Co-operative Banks 41.6 42 50 Post Offices 47.5 60.2 60.8 Total 454.6 487.1 610.3 Total Accounts per 100 adult persons 51 46 54
Financial Inclusion ,[object Object],[object Object],[object Object],Financial Inclusion STATE DRIVEN INTERVENTION VOLUNTARY EFFORT BY BANKS “ A small loan, a savings account or an insurance policy can make a great difference to a low-income family. They enable people to invest in better nutrition, housing, health and education for their children. They ease the strain of coping with difficult times caused by crop failures, illness or death. They help people plan for the future.”  - Kofi Annan, Secretary General of the United Nations Source: 1.Commemorative Lecture by Shri V.Leeladhar, Deputy Governor Reserve bank of India at the Fedbank Hormis Memorial Foundation at Ernakulam on December 2, 2005.  2. Building Inclusive Financial Sectors for Development, The Blue Book.  3. The NABARD Report, January 2008 Comprehensive financial inclusion Credit, insurance etc Financial literacy Opening of a bank account
A.P.Smartcard Project ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Banking outpost in each Gram Panchayat SSP pensioners  & MG-NREGS wage seekers have bank a/c s TOTAL FINANCIAL INCLUSION
Key-Processes 1) 2) Allots districts/GPs Bank Bank Bid Bid Bid Bid Technology Service Providers Business Correspondents Enrollment ,[object Object],[object Object],[object Object],[object Object],3) Issue of ,[object Object],[object Object],[object Object],4)
Smartcard Business Cycle BUSINESS CORRESPONDENT CSP BANK The AP Smart Card Project 5) Unspent money Reconciled statement Reconciled statement Unspent money Unspent money Acquittanc e CASH DISBURSEMENT Acquittanc e e-payorder &  Fund Acquittanc e e-payorder CASH Acquittanc e
CSP Disbursement cycle ,[object Object],Download-data Biometric authentication Cash disbursement 6) Upload -data
PILOT Started in 6 mandals in Warangal District Service area Approach, ALW as TSP with 6 banks Enrollment started March,2007 - payments started in April, 2007 Service Area Approach GPs in six districts are allocated to different banks based on the service area From March, 2008 onwards, enrollment started The  GPs are allocated to 12 banks in service area approach One Dist- One Bank model One single district is completely allocated to one single bank From November, 2008 onwards, enrollment started 7 banks & DoP are operating in this model. Project Implementation OVERALL PROGRESS AT A GLANCE No. of districts  :  All  23 Total no of GPs 21792 No. of GPs where enrollment is effected 21387 No of GPs where payments commenced 16423 Target  (No.of  Beneficiaries) 211 lakhs No. of beneficiaries enrolled 144 lakhs No. of cards issued 123 lakhs Amount paid (from May 2007) Rs. 3154 Cr.
Process Improvements made: Electronic Fund Management System Server to Server Integration & data transfer for payment and reconciliation Appointment of one Management Graduate as Coordinator for every district for better monitoring.
Challenges and way forward: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
 
Service Providers ALW FINO Integra Atyati TCS HCL Coromondal APOnline Banks Axis Bank Union Bank of India APGVB State Bank of India Andhra Bank Corp Bank Deccan Grameen Bank State Bank of Hyderabad ICICI Bank Indian Bank Punjab National Bank ING Vysya Bank Post Office
Financial Inclusion: Potential for Banking Business per district ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
FINANCIAL EXCLUSION ,[object Object],[object Object],[object Object],[object Object],[object Object]
FI: The Rights Approach ,[object Object],[object Object],[object Object],[object Object],[object Object]
Towards faster & better FI ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
 

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A.V.V. Prasad

  • 1. Welcome A.P. SMART CARD PROJECT (Financial Inclusion for Good Governance) A.V.V.PRASAD Additional Commissioner Department of Rural Development Govt of Andhra Pradesh
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  • 6. Smartcard Business Cycle BUSINESS CORRESPONDENT CSP BANK The AP Smart Card Project 5) Unspent money Reconciled statement Reconciled statement Unspent money Unspent money Acquittanc e CASH DISBURSEMENT Acquittanc e e-payorder & Fund Acquittanc e e-payorder CASH Acquittanc e
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  • 8. PILOT Started in 6 mandals in Warangal District Service area Approach, ALW as TSP with 6 banks Enrollment started March,2007 - payments started in April, 2007 Service Area Approach GPs in six districts are allocated to different banks based on the service area From March, 2008 onwards, enrollment started The GPs are allocated to 12 banks in service area approach One Dist- One Bank model One single district is completely allocated to one single bank From November, 2008 onwards, enrollment started 7 banks & DoP are operating in this model. Project Implementation OVERALL PROGRESS AT A GLANCE No. of districts : All 23 Total no of GPs 21792 No. of GPs where enrollment is effected 21387 No of GPs where payments commenced 16423 Target (No.of Beneficiaries) 211 lakhs No. of beneficiaries enrolled 144 lakhs No. of cards issued 123 lakhs Amount paid (from May 2007) Rs. 3154 Cr.
  • 9. Process Improvements made: Electronic Fund Management System Server to Server Integration & data transfer for payment and reconciliation Appointment of one Management Graduate as Coordinator for every district for better monitoring.
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  • 12. Service Providers ALW FINO Integra Atyati TCS HCL Coromondal APOnline Banks Axis Bank Union Bank of India APGVB State Bank of India Andhra Bank Corp Bank Deccan Grameen Bank State Bank of Hyderabad ICICI Bank Indian Bank Punjab National Bank ING Vysya Bank Post Office
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