This document provides an overview of Andhra Pradesh's smart card project for rural development. The objectives are to increase banking access for the poor, ensure timely benefits delivery, and achieve total financial inclusion. Banks set up the infrastructure using service providers and business correspondents. Over 142 lakh beneficiaries have been enrolled across 22 districts, with payments starting in over 19,000 villages. The roles of various stakeholders like banks, government departments, and business correspondents are also outlined.

1. Welcome
Presentation on
A.P. SMART CARD PROJECT
A.V.V. PRASAD
Additional Commissioner of Rural Development
Government of Andhra Pradesh

2. Outline of the presentation
 Objectives
 Approach
 Architecture
 Key Process
 Roles and responsibilities
 Phase – I
 Phase-II
 Progress at a glance

3. Objectives
 To increase the outreach of mainstream banking and
financial services to the poorest of the poor by using
technology based solutions.
 Ensure efficient and timely transfer of government benefits
to the poor.
 Minimize the possibility of fraudulent payments.
 To achieve Total Financial Inclusion.

4. 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.

5. Architecture
 Banks lay down the entire infrastructure.
 Banks will select Service Providers and Business
Correspondent through competitive bidding.
 Service providers to provide technology.
-- Technology includes PoS equipment
biometric reader and Printer.
 Business Correspondent delivers financial services to
people.
 PoS is manned by CSPs (preferably from SHGs)

6. Technology (M/s Fino)
11001000…
Image
Template
Code
Receipt
Generation Slot
Receipt
Generation Slot
Slot to
capture
thumb print
Slot to
capture
thumb print
Slot to insert
Operator /
Customer card
Slot to insert
Operator /
Customer card
Arrow Key
for starting
the device
Arrow Key
for starting
the device
F buttonF button

7. Technology (M/s A Little World )
 Based on new generation Near Field Communications (NFC) mobile
phones; contactless RFID smart cards and integrated biometrics.
 Alternate option of attaching fingerprint scanner + card reader to a PC or
PoS.
Can also be deployed on PCs -
by adding a NFC card reader +
fingerprint scanner (both USB
peripherals costing about Rs.
6000)

8. Key- process
1. Enrolment
– Department gives list of beneficiaries – SSP & NREGS
– Concerned bank / Financial institution conducts an
enrolment camp in the village.
– GPs, VOs assist the organization in identification of
beneficiaries.
– 6/ 10 finger prints, photo and other details of the
beneficiary captured.
– An account will be opened in the name of beneficiary.
Contd..

9. Key- process
2. Preparation and issue Smart Card.
– Data collected during enrolment is encrypted on the
card including biometric. (Encrypted Java smart card
with 32 KB memory).
– Card is delivered to the beneficiary in the village within
three weeks.
Contd..

10. Key- process
3. Business Correspondent (BC) & Customer Service
Provider (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.

11. Key- process
4. Release of funds & Cash delivery
– Government issues instructions to the Banks / FI
authorizing payment.
• List of beneficiaries and authorized amount will
be given.
– Individual account of beneficiary is credited.
– Cash is physically transported and delivered in the
village to CSP.

12. Key- process
5. Disbursement
– CSP sits at pre-designated government premises usually
GP building etc.
– Beneficiary approaches with card.
– Card is inserted in the card reader and identity of
beneficiary is established.
– Based on the a/c balance of the beneficiary as displayed
on the screen, cash is paid.
– A receipt is generated in duplicate.
– A manual acquittance also maintained.
– In case of exigencies, manual payment is made.

13. Key-process
6. Data uploading
– CSP / BC uploads data of disbursements daily to TSP &
Bank Servers.
– Disbursement data is shared by Bank to MNREGA
Server & SSP Server.

14. Roles and responsibilities
Role 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 of
payments.
– To conduct Monthly Review Meetings at State level

15. Roles and responsibilities
Role 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.

16. Role of District Collector:
– Oversee the entire implementation process.
– Conduct review meetings with Banks, TSP, BC &
MPDOs.
– Identify bottlenecks and inform to the State
Government.
Roles and responsibilities

17. Roles and responsibilities
Role of DRDAs
– Support enrolment of beneficiaries
– Provide information about SSP beneficiaries.
– Facilitate the VOs/SHGs in Identification of CSPs
for BCs.
Contd..

18. – Provide copies of Pension payment orders by 25th
of
every month.
– Transfer pension amount to the bank a/c
– Consolidating MIS reports and forwarding to Head
office.
– Pay 2% service charges on the value of pension
benefits disbursed in the district by the Bank after
reconciliation.
– Monitoring and periodical review.
Contd..

19. Roles and responsibilities
Role of DWMAs
– To provide list of wage seekers for enrollment.
– 1% service charges with e-pay order and 1% service
charges after reconciliation to the Banks.
– Ensuring smooth payment of wages.
– Consolidating MIS reports and forwarding to Head
office.
– Conducting regular review meeting with the MPDOs,
Banks & Smart Card agencies.

20. Roles and responsibilities
Role of MPDOs.
– Schedule & organize enrolment process.
– Send electronic copy and hard copy of Wage payment
orders 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

21. Roles and responsibilities
Role 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.

22. Roles and responsibilities
Role 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.

23. Phase-I districts
With service area approach
Sn. District Bank Service Provider
1 Chittoor CORPORATION INTEGRA
INDIAN BANK INTEGRA
Dept of Post APOnline
2 East Godavari AB ATYATI
Corporation FINO
ICICI FINO
Dept of Post APOnline
UBI FINO

24. Phase-I districts
With service area approach
Sl.
No.
District Bank Service Provider
3 Karimnagar ICICI FINO
SBH HCL
UBI FINO
4 Mahaboobnagar APGVB ALW
ICICI FINO
SBH CORAMANDAL
Dept of Post APOnline
UBI FINO
CONTD

25. Phase-I districts
With service area approach
Sl.
No.
District Bank Service Provider
5 Medak APGVB ALW
Corporation FINO
ICICI FINO
SBH HCL
Dept of Post APOnline
UBI FINO
6 Warangal AB ALW
APGVB ALW
AXIS FINO
Corporation FINO
SBH ALW
Dept of Post APOnline
UBI ALW
CONTD

26. Phase – II districts – one bank one district
model
Sl.
No.
District Bank Service
Provider
01 Visakhapatnam Union Bank of India FINO
02 West Godavari Union Bank of India FINO
03 Prakasam Union Bank of India FINO
04 Srikakulam Andhra Bank ATYATI
Dept.of Posts APOnline
05 Guntur Andhra bank ATYATI
06 Khammam APGVB ALW
08 Adilabad State Bank of Hyderabad HCL

27. Phase – II districts – one bank one district model
Sl.
No
District Bank Service
Provider
09 Krishana Axis Bank FINO
10 Rangareddy Axis Bank FINO
11 Ananthpur Axis Bank FINO
12 Kurnool Axis Bank FINO
13 Nalgonda Department of Posts. APOnline
14 Nizamabad Department of Posts APOnline
15 Vizianagaram Corporation Bank INTEGRA
Department of Posts. APOnline
16 YSR Kadapa ICICI FINO
17 Hyderabad ICICI FINO
SPS Nellore ICICI TCS
CONTD

28. 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

29. Overall progress at a glance
No. of Districts Enrollment started : 22
SSP NREGA Total
No.of GPs Enrollment
started
20208 20435 20435
Target (No.of
Beneficiaries)
70.96 lakhs 136.30 lakhs 207.26 lakhs
No. of beneficiaries enrolled 58.46 Lakhs 111.36 lakhs 169.82 lakhs
No. of cards issued 47.46 lakhs 95.10 lakhs 142.57 lakhs
GPs Payment started 17739 19823 19823