A.p.smart card project april 2012

Welcome

Presentation on

SMART CARD

Commissioner, Rural Development

Outline of the presentation

Objectives

Approach

Architecture

Key Process

Roles and responsibilities

Phase – I

Phase-II

Progress at a glance

Objectives

To increase the outreach of main stream banking and

financial services to the poorest of the poor by using

technology based solutions.

Ensure efficient and timely transfer of govt. benefits to the

poor.

Minimize the possibility of fraudulent payments.

To achieve Total Financial Inclusion.

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 out post in each village.

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)

Technology (M/s Fino)

11001000…

Image

TemplateCode

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

Technology (M/s Little World )

Based on new generation Near Field Communications (NFC) mobile

phones; contact-less 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)

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..

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..

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.

Key- process

4. Payment

– 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.

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.

Key-process

6. Data uploading

– CSP / BC uploads data of disbursements daily.

– MIS report on progress of disbursement is submitted to

Government.

Roles and responsibilities

Role of Rural Development

– Policy decisions are taken by the department.

– Put in place appropriate systems and

procedures for transfer of payments.

Roles and responsibilities

Role of Banks

– MoU with Government.

– Conduct enrolment camps at village level.

– Open SB account and issue Smart Card to beneficiaries.

– Appoint, train and enter into contract with BCs.

– Credit pensions / wages to the account of the beneficiaries

and disbursement at village level.

– Maintaining centralized database.

– Provide all required MIS from time to time.

Role of District Collector:

– Formation of District Implementation Committee.

– Oversee the entire implementation process.

– Conduct review meetings every week for a period of 3

months, then have monthly meetings.

– Identify bottlenecks and inform to the State Level

Steering Committee.

Roles and responsibilities

Roles and responsibilities

Role of DRDAs

– Supporting enrolment of beneficiaries

– Provide information about SSP beneficiaries.

– Facilitate the VOs/SHGs in Identification of CSPs

for BCs.

Contd..

– Provide copies of Pension payment orders by 25th of

every month.

– Transfer pension amount to the bank a/c

– Ensuring smooth disbursement of pensions

– Consolidating MIS reports and forwarding to Head

office.

– Pay 2% service charges of the value of pension benefits

disbursed in the district by the Bank after reconciliation.

– Monitoring and periodical review.

Contd..

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.

Roles and responsibilities

Role of MPDOs.

– Shall make necessary arrangements for enrolment

process.

– Shall send electronic copy and hard copy of Wage

payment orders to the Banks.

– Transfer funds to the bank A/c

– Ensuring smooth disbursement of SSP and payment of

wages.

Roles and responsibilities

Role of Business Correspondent (BC)

– Shall be responsible for money evacuation.

– Appoint and enter into MoU with CSP.

– Provide training and handholding to CSPs.

– Ensure smooth disbursement of SSP and Payment of

NREGS wages.

Roles and responsibilities

Role of Customer Service Provider (CSP)

– Shall operate the terminals.

– Shall disburse the pensions from 1st of every month.

– Shall make payment of NREGS wages once in a week.

– Shall upload information on a daily basis.

Phase-I districtsWith service area approach

Sn. District Bank Service Provider

1 Chittoore

Axis FINO

CORPORATION INTEGRA

INDIAN BANK INTEGRA

INGVB FINO

SBI ALW

UBI FINO

Dept of Posts APOnline

2 East Godavari AB ATYATI

ICICI FINO

INGVB FINO

SBI ALW

UBI FINO

Phase-I districtsWith service area approach

Sl.No.

District Bank Service Provider

3 Karimnagar ICICI FINO

SBH HCL

SBI ALW

UBI FINO

4 Mahaboobnagar APGVB ALW

ICICI FINO

SBH CORAMANDAL

SBI ALW

UBI FINO

CONTD

Phase-I districtsWith service area approach

Sl.No.

District Bank Service Provider

5 Medak APGVB ALW

ICICI FINO

SBH HCL

SBI ALW

UBI FINO

6 Warangal AB ALW

APGVB ALW

AXIS FINO

PNB ALW

SBH ALW

SBI ALW

UBI ALW

CONTD

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

05 Guntur Andhra bank ATYATI

06 Khammam APGVB ALW

07 Nellore State Bank of Hyderabad TCS

08 Adilabad State Bank of Hyderabad HCL

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

16 Kadapa ICICI FINO

17 Hyderabad ICICI FINO

CONTD

Overall progress at a glance (Rural)

No. of districts : 22

No. of GPs where project is under way. : 21805

Target no. of benfs. under SSP & NREGS : 188.66 lakhs

No. of benfs, enrolled : 142.26 lakhs

No. of cards issued : 134.57 Lakhs

Amount paid : Rs.4179.84 Crs

Overall progress at a glance (RURAL)

No. of Districts Enrollment started : 22

SSP NREGA Total

No.of GPs Enrollment started

20913 20294 21024

Target (No.of Beneficiaries)

64.60 lakhs 124.06 lakhs 188.66 lakhs

No. of beneficiaries enrolled 55.27 lakhs 86.99 lakhs 142.26 lakhs

No. of cards issued 52.16 lakhs 82.41 lakhs 134.57 lakhs

GPs Payment started 18249 16776 18789

Amount paid Since Inception 1866.28 Cr 2313.56 Cr 4179.84 Cr