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Plastic Money-"is Rural India ready for it?"
The presentation discusses various forms of plastic money, highlighting their advantages and disadvantages, as well as the state of banking in India. It reveals that a significant portion of the Indian population remains unbanked, especially in rural areas, despite improvements in literacy and banking infrastructure. The document emphasizes the need for financial inclusion initiatives and collaboration between banks and government to enhance rural banking accessibility.
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Plastic Money-"is Rural India ready for it?"
- 1. A PRESENTATION BY TARUNBOOTI CRO0394438 tarunbooti@ymail.com
- 2. Plastic moneyis the name given to all types of plastic bank cards. They come in different forms such as Credit cards, Debit cards, Pre-paid cash cards and ATM cards etc.
- 4.
- 5. (1) isthe Bank Logo. (2) is the EMV chip(commonly referred to as 'Chip&Pin') (3) is the Hologram(This represents a valid card and is a sign that the card is legal) (4) is the 16 digit card number (5) is the logo of the card type (6) is the expiry date (7) is the name of the cardholder
- 6. (1) isthe Magnetic stripe. (2) is the Signature strip (3) is the CVV(Card verification code or value)code
- 7. Easy tohandle Easy to pay Easy availability Reward Points Credit Facility Risk of theft minimized No need to Deposit cash TraceableTransactions Transparency
- 8. Loss &Misuse Non Acceptance at Small Retails Outlets Service Charges High Interest Rates Spending Habits Less Global Acceptability Susceptible to damage
- 9. According tothe 2011 census of India, 68.84% of Indians (around833.1 million people) live in 640,867 different villages. 31.16% of Indians live in urban ares. The literacy have shown improvement in Census 2011 compared to the last Census.The literacy rate in the country as a whole is 74.04%. In the rural and the urban areas the literacy rates are 68.9% and 84.9% respectively.
- 10. 41% ofthe Population in India is unbanked. 40% is unbanked in urban areas. 61 % is unbanked in rural areas. India has about 600,000 villages but only 74,000 of those are banked. In 2015, there were 7.8 branches for one lakh people in rural India, but 18.7 branches in urban India.
- 11. Particulars Year Ended 2010 Year Ended 2014 YearEnded 2015 Banking outlets in villages – Branch Mode 33,378 46,126 49,571 Banking outlets in villages - Branchless Mode 34,316 3,37,678 5,04,142 Total 67,694 3,83,804 5,53,713
- 12. Distribution of ATMs(Rural-Urban) 2013 Banks Metro Centres Urban Centres Semi Urban Centres Rural Centres Public Sector Banks 21,366 24,469 20,412 9,645 Private Sector Banks 18,115 13,742 9,664 3,190 Foreign banks 968 228 20 28 Total 42,226 40,884 33,015 13,700
- 13. Distribution of ATMs(Rural - Urban) 2014 Banks Metro Centres Urban Centres Semi Urban Centres Rural Centres Public Sector Banks 26,767 35,093 32,994 21,810 Private Sector Banks 19,163 14,535 11,394 3,982 Foreign Banks 903 201 20 32 Total 46,833 49,829 44,408 25,792
- 14. Financial Inclusion:According to the Planning Commission (2009), Financial inclusion refers to universal access to a wide range of financial services at a reasonable cost.These include not only banking products but also other financial services such as insurance and equity products.
- 15. ATMs: Encouragingbanking habits amongst the unbanked masses by installing audio- video enabledATMs to announce simple instructions in the local language to assist the customer in the unbanked areas. Training and Financial Literacy:There could be regular interactive training workshops organised by banks or gram panchayat offices on financial products suited to the local population.
- 16. BankingTechnology:A solutionwherein cashless payments are enabled through payment transfers by a mere swipe of the card using Point of Sales device at each prospective transaction points (like retail stores, equipment vendors, commuting medium like buses etc.). By having such terminals, the user would just be required to swipe his/her card to effect the payment.
- 17. Infrastructure facilities. Government Intititatives. Etc.
- 18. Though thetask might appear to be a daunting one, a joint effort by banks and government can make rural banking a success. “If we can do it in a generation, it would be wonderful. I don’t think we should look at early gains,” “This is a journey”.
- 20.