4. Geographic Area - Bihar
• Third largest state by population
• Fastest growing population in
India
• 85% of Bihar’s population live in
rural areas
• Well connected to the rest of
India through developed railways
and air travel
• Many people work in agriculture
and live in poverty (lack of access
to irrigation equipment)
5. Nawada and Nalanda Districts
Nalanda Nawada
Population 2,872,523 2,216,653
Literacy
Rate
66% 63%
Percentage
in Poverty
45% 27%
Number of
ADHAAR
Cards Issued
485,190 996,581
6. Why Should People Save Money?
• 76% of Bihar is at risk of
flood devastation
• These reoccurring floods
devastate crops and have
affected over 6 million people
(2013)
• If enough money is saved to
install irrigation systems,
crops can be saved thus
creating more a sustainable
revenue source.
• Smart pooling of monsoon
rains can enable farmers to
collect water for the dry
season.
7. Outline of 4 Phases
Phase 1
•ID Distribution & HQ Set-Up
Phase 2
• Infrastructure Rollout & HR Dev
Phase 3
• Village Integration
Phase 4
• Expansion & Scalability
9. State Headquarters Set-Up
• Patna
Large city where Bank of India already has
strong presence
Centralized within Bihar, well connected to
Nawada/other districts by road
• Functions of the Headquarters:
Will regulate cash in transfer
Will ensure a float is maintained at each
PCO
Will have a centre where PCO workers can
call for support/inquiries
In long-term, will be an arms-length base
for other services, e.g. insurance
10. AADHAAR Cards
• A form of biometric-enabled ID card, that links citizens to a “unique
identification number” (UID) and 10-fingerprint/iris scans
Plans to make it mandatory for gov’t programs, e.g. PDS
• Citizens’ ID numbers will link them to their bank accounts, and their
fingerprints will serve as a “pin” when they wish to deposit/withdraw
money
• In Sept. 2014, gov’t approved plans to roll out AADHAAR cards in Bihar
(>27% of residents already have AADHAAR Cards)
AADHAAR Cards have been the subject of constitutional legal disputes; we
assume the project will go ahead as planned
11. Issuance of AADHAAR
• You must have another piece of ID in
order to obtain an AADHAAR card:
Ration Cards, Passports, Voter’s Card etc. all
acceptable
• Gov’t of India sends “Biometric Camps”
across country, issuing cards
• Biometric camps would be sent to Nawada
and Nalanda to issue AADHAAR cards
Associate new bank accounts with the UID
number of each card/give people with existing
cards the chance to sign up for an account
13. Access Point 1:
Public Call Offices (PCOs)
• Manned and unmanned
“telephone booths” that
allowed Indians to make short
and long distance calls.
• Usage rates have decreased,
particularly in urban areas
due to prevalence of mobile
devices.
• 5 million PCOS in urban and
rural India as of 2009
Approx. 80,000 in Bihar alone
Utilize minimum 2 PCO
workers per village
• As incentive to adopt plan and
integrate system, salary will
be increased by 10%.
14. Access Point 2:
Fair Price Shops (FPS)
• Serve as Ration Centres for India’s poorest citizens
Integrated with Public Distribution System
• Have existing landlines that can be converted.
• Will give us access to women who overwhelmingly use the FPS
• 45,000 throughout Bihar
15. Process
1. PCO/FPS workers scan villagers’ AADHAAR Cards, and link
them to a bar-coded envelope in which money is sealed
Envelope placed into a secure, locked box.
Workers have no involvement in depositing cash.
2. Boxes are picked up by truck on a regular interval (trucks also
drop off cash for withdrawals), and taken to Patna to be
counted by Bank of India officials and reflected in account
balances.
3. Villagers are then able to withdraw money by visiting the
PCO/FPS office, and providing biometric credentials linked to
their AADHAAR cards
72 hours notice needed for large withdrawals.
PCO/FPS owners to keep a float.
Clients will get bonus money (monthly) if the account remains active.
16. Technology
• Broadband networks in PCO
kiosks and FPS.
BSNL - Bihar Telecom Circle
• Biometric Security:
Barcode Scanner
Fingerprint Scanner
• Software to be developed for
local/online banking
• PCO/FPS workers to be fully
trained in software
17. Financial Projections
Budget (ALL PRICES IN INR (₹))
Per Village/ Ration ctr.
Bihar Total
Nawada Nalanda
Phase One: Planning
Miscellaneous 50000 50000 100000
Biometric Devices 4 x 2500 4 x 2500 20000
Forms 3000 3000 6000
Personel 2.5 lakh 2.5 lakh 500000
Software Costs 6 lakh 600000
Phase Two: Village infrastructure Rollout
Landline to Broadband Conversion 4 x 2500 7 x 10000 12 x 10000 190000
Tablets 4 x 1000 7 x 4000 12 x 4000 76000
Deposit Boxes 4 x 250 7 x 1000 12 x 1000 19000
Call Centre (Total Cost) 1 x 4000 1 x 4000 8000
Barcode Scanner 4 x 2000 7 x 8000 12 x 8000 152000
Biometric Scnaner 4 x 2500 7 x 10000 12 x 10000 190000
Money Box 4 x 1000 7 x 4000 12 x 4000 76000
Supplies
Envelopes (with PIN #) 4 x 500 7 x 2000 12 x 2000 38000
Pamphlets 4 x 500 7 x 2000 12 x 2000 38000
Basic Advertising 1 x 3000 1 x 3000 6000
Phase Three Village Integration
Personel (truck Delivery) 1 x 250000 1 x 250000 500000
Gasoline (1st yr @ ₹80/L) 1 x 4200 1 x 4200 8400
Merhant Salary (1 yr) 4 x 30000 7 x 1.2 lakh 12 x 1.2 lakh 240000
TOTAL 27.7 lakhs
19. Elements of the Village Rollout
• Meetings with village leaders
(political/spiritual/economic) to explain
program
• Advertising campaign
Posters, public announcements (including
dates of town hall meeting)
• Town-hall style meetings
Catered to different demographic groups (e.g.
farmers, women)
Hosted by Bank of India officials, as well as
village leaders
Explains the benefits of the program,
answers questions
Ability to save for a rainy day or purchases
(tractors/sewing machines)
Bonuses for keeping account active
22. App and Internet.org
• Introduce mobile banking through
an app
• Allows for clients to keep track of
their deposits, withdrawals and
other banking options.
• Internet.org will help us spread
the internet throughout India.
• Currently expanding in Kerala.
23. Future Banking Options
• Scale up number of drop-off points integrate more efficiently
• Provide additional services
Insurance
Credit cards
Debit cards
Mortgages
Microfinance
Private-Sector Banking
24. Sources
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<http://bsnl.in/opencms/bsnl/BSNL/services/landline/pcohome.html>.
• "BSNL Launches Landline Phones with Video Call Facility." Economic Times. Times of India, 20 Sept.
2012. Web. 31 Mar. 2015. <http://articles.economictimes.indiatimes.com/2012-09-
20/news/33976846_1_video-phones-bsnl-chairman-landline-phones>.
• "Bihar." Find the Best. Find the Best, 1 Jan. 2012. Web. 31 Mar. 2015. <http://states-of-
india.findthebest.in/l/4/Bihar>.
• "Fixed Mobile Interconnection: India." ITF. IIT, 1 Jan. 2012. Web. 31 Mar. 2015.
<https://www.itu.int/osg/spu/ni/fmi/casestudies/indiaFMI_final.pdf>.
• Fontanella-Khan, James. "India Says Goodbye to Its Phone Booths." Beyondbrics. Financial Times, 8
May 2010. Web. 31 Mar. 2015.
• Jain, Bharti. "Aadhaar Count in 13 States Higher than Their Populations - The Times of India." The
Times of India. The Times of India, 29 Mar. 2014. Web. 31 Mar. 2015.
• "Nalanda District Administration Welcomes You." Nalanda District Administration Welcomes You. 1
Jan. 2015. Web. 31 Mar. 2015. <http://nalanda.bih.nic.in/>.
• "Official of District Administration : Nawada." Official of District Administration : Nawada. 1 Jan.
2015. Web. 31 Mar. 2015. <http://nawada.bih.nic.in/>.
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Mar. 2015. <http://bsnl.in/opencms/bsnl/BSNL/services/landline/tele_tariff.html>.
• Tnn, Danya. "Phone Booths: Can They Ring in a New Future?" Times of India. Times of India, 8 Jan.
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