Project Synopsys

Bank on Wheels for Rural Finanacial Inclusionbank: Manmad Urban Co-op. Bank Ltd.guide: Praveen Naharstudent: Amit A. ChordiyaNational Institute of Design, 2012

PROJECT SYNOPSYS: MOBILE BANK FOR RURAL FINANCIAL INCLUSION I by - AMIT A. CHORDIYA I Guide - PRAVEEN NAHAR I NATIONAL INSTITUTE OF DESIGN

As per NID’s curriculum, all final semester students are required to undertake a diploma project which is a full scale design project in the industry. This diploma project comprises a comprehensive project based on a predetermined design brief. The diploma project, which is expected to be of 6 months duration, is a complete demonstration of independent client service by the student under the guidance of a faculty member from NID. The student is expected to render a professional design assignment with application and implementation capabilities. The project brief is approved by the student’s faculty guide. While doing the project, the student is also required to make at least 3 guide visits during the course of the project; wherein, the guide reviews the progress of work. On successful completion of the work, the student’s performance on the project is critically evaluated by a jury comprising NID faculty members and external experts for the award of the NID’s Professional Education Programme Diploma upon the student.

This diploma project document is a complete account of project methodology, process and outcomes. This document outlines the efforts made with objectives of providing access of financial services to maximum number of people (in Manamd* region) with a well-designed bank on wheels for a better customer experience and setting up a benchmark for scaling up similar initiatives in other regions (to address ‘the last mile’ problem) as well. Though the project implementation could not be demonstrated (due to unavoidable circumstances); complete execution plan for the operation of mobile bank in villages nearby Manmad, design of custom interior of the mobile bank, its exterior and communication design intended to achieve rural financial inclusion for the facilitator bank (which is a scheduled commercial bank) are documented here.

* Manamd is 3rd largest town in Nasik District (India) with population around 125thousand people

Preface

PROJECT SYNOPSYS: BANK ON WHEELS FOR RURAL FINANCIAL INCLUSION I by - AMIT A. CHORDIYA I Guide - PRAVEEN NAHAR I NATIONAL INSTITUTE OF DESIGN

The National Institute of Design (NID) is internationally acclaimed as one of the foremost multi-disciplinary institutions in the field of design education and research. The institute functions as an autonomous institute of national importance under the department of Industrial Policy & Promotion, Ministry of Commerce & Industry, Government of India. NID is recognized by the Dept. of Scientific & Industrial Research (DSIR) as a scientific and industrial design research organization. The BusinessWeek, USA has listed NID as one of the top 25 European & Asian programmes in the world.

On the basis of Charles and Ray Eames’s remarkable document – ‘The India Report’ NID was set up in 1961 and is known for it’s pursuit of design excellence to make Design Enabled India. NID offers professional education programmes at Undergraduate and Post Graduate level with five faculty streams viz. Industrial Design, Communication Design, Textile, Apparel & Lifestyle Design, IT Integrated (Experiential) Design and Interdisciplinary Design Studies.

NID’s vision is to emerge as a global leader in Design Education and Research and become a torchbearer for innovative design directions in the industry, commerce and development sectors. NID’s trans-disciplinary environment consisting of 17 diverse design domains helps in creating innovative and holistic ecosystem for design learning. NID’s graduates have made a mark in key sectors of commerce, industry and social development by taking role of catalysts and through thought leadership.

About Nid

PROJECT SYNOPSYS: MOBILE BANK FOR RURAL FINANCIAL INCLUSION I by - AMIT A. CHORDIYA I Guide - PRAVEEN NAHAR I NATIONAL INSTITUTE OF DESIGN

Year of establishment 1999-2000 Functions under Co-operative Societies Act, 1965 and Banking Regulations Act 1945

Regulated by Reserve Bank of India

License no NSK/NSK/BNK/O 112/99 UBD/MUM [MAH] 0014 P/1999-2000 Type of bank Scheduled Commercial Bank

No. of branches 1

Address 4,5 Balwant Chambers, Manke Compound, Manamd 423104 dist- Nahik, India

Services Banking and finance

Chairman Mr. Sanjay Wadnere

Manager Mr. Khadtale

No. of board members 18

No. Staff members 7

Facilitator Bank: Manamd Urban Co-Op. Bank Ltd.

PROJECT SYNOPSYS: BANK ON WHEELS FOR RURAL FINANCIAL INCLUSION I by - AMIT A. CHORDIYA I Guide - PRAVEEN NAHAR I NATIONAL INSTITUTE OF DESIGN

Background : Rural Financial Inclusion in Indiaa country .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. & 3 megacities380 urban conglomerates .. .. .. .. .. .. .. .. .. .. .. .. .. & 640 districts5767 tehsils & 7742 towns

6,38,000 villages

1,19,982 villages said to have banked .. .. .. .. / 6,38,000 villages

37,471 rural branches .. .. .. .. .. .. .. .. .. .. .. .. .. .. / 1,19,982 villages said to have banked 37,471 rural branches .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. / total 99,242 branches & 1,39,144 rural post

offices ( / 1,55,516 post offices)

74,24,90,639 rural population .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. / 1,02,87,37,436 total population

51,97,43,447 financially excluded rural people .. / 74,24,90,639 rural & 1,02,87,37,436 Indian population

51,97,43,447 financially excluded rural people .. .. .. .. .. .. .. / 61,72,42,462 financially excluded Indians 14,50,00,00 financially excluded households .. .. .. .. .. .. .. / 20,59,00,000 households in India

(highest in the world)

21,38,00,000 rural savings accounts .. .. .. .. .. .. .. .. .. .. .. .. .. / 37,35,00,000 savings accounts with SCBs; accounting for 60.11% of GDP

38.8 rural savings account / 100 adults compared to 75.2 urban savings accounts / 100 adults 5,31,00,000 rural credit accounts .. .. .. .. .. .. .. .. .. .. .. .. .. .. / 9,44,00,000 credit accounts with SCBs; accounting for 43.62% of GDP 9.6 rural credit accounts / 100 adults .. .. .. .. .. .. .. compared to 12.4 urban credit accounts / 100 adults

10.6 branches per 1,00,000 adult persons& 30.4 branches / 1000 km2 8.9 ATMs per 1,00,000 adult persons & 25.4 ATMs / 1000 km2

13,300 people per branch 13,85,00,000 no frill accounts

10% Indian population has access to Insurance

18% have debit cards .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. & only 2% have credit cards

Exclusion is staggering whichever parameter one chooses to look at !

ReferencesAll India Debt and Investment Survey (AIDIS) released once in a decade by the National Sample Survey Organisation (NSSO)6 and various

banking data brought out by the Reserve Bank from time to time. The analysis is also supplemented by the data based on the surveys conducted by NCAER-Max New York Life and India Invest Market Solutions (IIMS).

Image Credits - http://www.babusofindia.com http://indiashaining.blogspot.in

This project is about a critical dimension of financial in/exclusion – ‘Access’. Stating simply; it is about A well designed Bank

On wheels for better customer experience

That will go to 23 villages nearby a central town, Manmad

Has area of 38.1 ft²

Requires monthly running cost of INR 27,180

Can server up to 33,350 adults & 50,512 people

Requires capital investment of INR 5, 87,188 i.e. about INR 18 per adult

Has potential debit opportunity of INR 87, 18,500 per yr & credit opportunity of INR 82, 01,000 per yr.

If scaled up for 798 towns like Manmad (with population more than 50,000) across India

Just by covering 18,354 villages out of 2, 29,150 villages (with population more than 1000)

Can serve up to 4,03,08,576 rural people out of 51, 97, 43,447 financially Excluded Rural Indians

Abstract

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The project was facilitated by Manmad Urban Co-operative Bank (belongs to Manmad - my hometown in Nashik district), which was looking forward to expand its reach with bank on wheels. Intriguing field research followed by primary research just propounded the need for Rural Financial Inclusion in 5, 18,018 unbanked villages (out of 6, 38,000) in India. Financial inclusion is the road that India needs to travel and write golden chapters of human endeavour & social development.

The project emphasises the fact that financial inclusion is not about giving hand-outs to anyone, rather it is about getting people to help themselves.

The design process followed under the guidance of my guide; yielded into,

Bank on wheels - sensitive to cultural factors and semantic aspects

Bank on wheels that has robust safety and security measures clubbed with design for assembly and maintenance

Bank on wheels whose Identity design is morphed

into vehicles exterior and interior design; and reflects co-operation, dynamics and trustworthiness.

Apart from teaching me with netegrities of banking, key learning from the project were working in real life scenario, within cost and space constraints. Banks need to have both model and motivation to convert rural financial inclusion into sustainable business opportunities. This project is an attempt to put forward the same.

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Thank UAmit A. ChordiyaGDPD, Product Design,National Institute of Designamitchordiya@gmail.comamit_c@nid.edu+91 9898 1423 98