Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

ICT in Financial Inclusion- Leveraging Technology- Balkrishna Sharma, Finance, SiS

4,872 views

Published on

Published in: Economy & Finance, Business
  • Dating direct: ❶❶❶ http://bit.ly/2Q98JRS ❶❶❶
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Follow the link, new dating source: ❶❶❶ http://bit.ly/2Q98JRS ❶❶❶
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

ICT in Financial Inclusion- Leveraging Technology- Balkrishna Sharma, Finance, SiS

  1. 1. 7th e-India – ICT Event eindia.eletsonline.com
  2. 2. The Scenario • Post 1991 reforms paved the way for Economic Transformation of the country. • Phenomenal growth in all sectors. • India inching towards becoming a Asian Power. • GDP Growth rate at an Impressive level • Telecommunication & Banking sectors bring about a complete change in the way we live.7th e-India – ICT Event eindia.eletsonline.com
  3. 3. The Agenda • Benefit of development to reach all sections of society. • Real Empowerment to every single citizen of the country. • Social Identity for every common man • Transforming the journey from Financial Exclusion to Financial Inclusion.7th e-India – ICT Event eindia.eletsonline.com
  4. 4. Financial Exclusion - Meaning • No Savings • No Insurance • No Access to Money • No Affordable Credit • No Bank Account • No Assets7th e-India – ICT Event eindia.eletsonline.com
  5. 5. Types of Financial Exclusion A. No access at all to regulated financial system B. Limited access to banks & other financial services. C. Individuals who have inappropriate products.7th e-India – ICT Event eindia.eletsonline.com
  6. 6. What leads to Financial Exclusion ? Social Factors • Lack of Information • Insufficient Documentation • Lack of Awareness • High Transection Charges • Lack of Access & Literacy7th e-India – ICT Event eindia.eletsonline.com
  7. 7. What leads to Financial Exclusion ? Financial Factors • Large cost to banks in extending services • High Maintenance cost for such accounts • Small ticket size for each transaction • Localization of Services • Large scale converge7th e-India – ICT Event eindia.eletsonline.com
  8. 8. Who are Excluded? • Landless labors • Unorganized sector • Urban slum dwellers • Migrants • Socially excluded groups • Marginal farmers • Ethnic minorities7th e-India – ICT Event eindia.eletsonline.com
  9. 9. The Journey …...7th e-India – ICT Event eindia.eletsonline.com
  10. 10. What is Financial Inclusion ? “Financial inclusion is the process of ensuring access to appropriate financial products and services needed by vulnerable groups such as weaker sections and low-income groups at an affordable cost in a fair and transparent manner by mainstream institutional players”Indian Contexts:- “Ensuring a bare minimum access to a savings bank account without frills, to all”International Contexts:- customers who are actively and persistently courted by the financial services industry, and who have at their disposal a wide range of financial services and products. eindia.eletsonline.com
  11. 11. Need for Financial Inclusion • Expansion of bank branches from 8700 at the time of bank nationalization in 1969 to 85,300 presently. • Only 38% of bank branches are in rural areas, even while 70 % of India is in rural areas. • Only 40 % of Indians have access to Banking facilities. • More than 73,000 habitations having a population of over 2,000 needs Banking Services7th e-India – ICT Event eindia.eletsonline.com
  12. 12. Bridging the Gap – Why through ICT ? Herculean task to cover entire population: • Limitations of physical Infrastructure • Physical distance • High Cost of maintaining setup Need for Efficient, Transparent & Effective mechanism ICT will be Secure, Reliable, Supportive, Cost Effective & above all Empowering the individual. Hence the need for ICT7th e-India – ICT Event eindia.eletsonline.com
  13. 13. Role of ICT • Smooth flow of Information • One time & minimum Documentation • Customer education and counseling through most popular media – Mobile • Low transection cost because of Virtual delivery model • 100% mobile penetration to ensure access7th e-India – ICT Event eindia.eletsonline.com
  14. 14. Financial Inclusion: How To Financial Existing Exclusion Financial Of poor Structure More People to Banking Channel Financial Inclusion7th e-India – ICT Event eindia.eletsonline.com
  15. 15. How ICT will facilitate Financial Inclusion Very difficult to access, Costly Customers who Banks which & Time Consuming provide needs financial financial service serviceUses Technology to access Low cost & easy to access the data from the Banks ICT which enables Financial Inclusion7th e-India – ICT Event eindia.eletsonline.com
  16. 16. How ICT will facilitate Financial Inclusion • Facilitate unique Identification • Multiple channels of delivery • Offer multiple financial products (Banking, Insurance, Capital Market) • Ensuring consumer protection • Micro finance • Affordable & Appropriate products tailored to local needs and segments • Multi –lingual (Information and Advice)7th e-India – ICT Event eindia.eletsonline.com
  17. 17. Financial Inclusion : A huge opportunity for ICT 80 700,000,000 70 600,000,000 60 500,000,000 50 400,000,000 Mobile 40 Mobile % 300,000,000 Subscriber in Bank Accounts % 30 Million 200,000,000 20 100,000,000 10 0 2006 2008 2009 2010 0 World India Source:- www.indexmundi.com Source: The Hindu7th e-India – ICT Event eindia.eletsonline.com
  18. 18. Financial Inclusion : A huge opportunity for ICT • Out of the 6.9 billion people on the planet, just 2.1 billion (30 %) have bank accounts • 5.2 billion people (75 %) have mobile phones. • In India, only 200 million (17%) people have bank account while 811 million (68%) have a mobile phones. - The Hindu • 121 million internet users in India in 2011- (IAMAI) and IMRB • Mobile VAS in India to Grow to Rs. 48,200 Crores by 2015 • Mobile Subscribers growing with CAGR 40% - Deloitte Report7th e-India – ICT Event eindia.eletsonline.com
  19. 19. Recent Initiatives • Formulating a sub-committee of State Level Bankers Committee (SLBC) to identify unbanked areas and formulate an action plan for providing banking facilities in the next 3 years. • Government has identified 60,000 areas with population of more than 2000 lacking banking facilities • One-time grant-in-aid of Rs.100 Crore for 2010-11 as to ensure provision of at least one centre or point of sales for banking services in all unbanked blocks in the country. • Standalone and Mobile ATMs – Act as a mobile branch of the bank. Connecting every village having a population of 2000 with at least once a week.7th e-India – ICT Event eindia.eletsonline.com
  20. 20. Recent Initiatives S.B.I Bank –K.D.F.S • State Bank of India with K.D.F.S (Kalanjiam Development Financial Services) • Acts as financial linkage institution to meet the needs of the poor wherever there is no commercial bank in the place of operation of the locations. Objectives • Credit facilities to poor individuals joined together as „self-help groups‟ • Liaise with government, resource institutions for establishing financial and other linkages • To promote, develop, finance rural and urban industries for interest of the poor7th e-India – ICT Event eindia.eletsonline.com
  21. 21. Recent Initiatives L.I.C- Jeevan Madhur • A micro-insurance policy that is providing social security to under-privileged people at a minimum premium of 25 rupees payable on a weekly basis for a life cover ranging from 5,000 rupees up to 30,000 rupees PNB in Tineri - Bihar A financial literacy project, in association with Panjab National Bank with Panchayat representatives Aim:- Spreading awareness about benefits of banking. Result:- in 100% financial inclusion of the village7th e-India – ICT Event eindia.eletsonline.com
  22. 22. Measures taken by R.B.I •No Frill account •Easier credit facility •Simpler KYC norms •Use of Information Technology - Smart Card •EBT (Electronic Benefit Transfer) through banks •OTS (One Time Settlement Scheme) for Small Borrowers and •Bank Branch and ATM Expansion Liberalized •Project Financial Literacy • Financial Literacy and Credit Counselling • Business Correspondent Model7th e-India – ICT Event eindia.eletsonline.com
  23. 23. “Swabhimaan”: A unique financial inclusion initiative • A path-breaking initiative - by the Government and the Indian Banks‟ • Association to cover economic distance between rural and urban India. • Launched:- February, 2011 • Aim:- “To Bring the deprived sections of the society in banking network to ensure that the benefits of economic growth reach everyone at all levels” • Scope:- • Basic banking services to 73,000 unbanked villages with a population of 2,000 • 5 Crore new accounts will be opened • Facilities like- • Savings Bank, Recurring Deposits, • Fixed deposits, Remittances, Overdraft facility, • Kisan Credit Card (KCCs), General Credit Cards (GCC)7th e-India – ICT Event eindia.eletsonline.com
  24. 24. Bank Account – A Passport to Progress A bank account does not merely store your money but acts as a Power House of your Identity, Self- esteem & Self – Respect. It empowers you in the real sense7th e-India – ICT Event eindia.eletsonline.com
  25. 25. 7th e-India – ICT Event eindia.eletsonline.com
  26. 26. 7th e-India – ICT Event eindia.eletsonline.com

×