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Sequencing of Financial Education Integrated with

Financial Inclusion Agenda and Consumer Protection Strategy - India Experience

BNM-AFI Training Programme Financial Inclusion Strategy & Data

(25-28 November 2014)

Sasana Kijang, Bank Negara Malaysia

Presentation by:

Mr. N. R. Lamare Mr. Dilavar K. Nalband

1

Structure of presentation

India: some facts Historical perspective of FI efforts Earlier Approach and New Approach Definition of FI Our Strategy to Financial Inclusion Initiatives taken, FIPs- Performance highlights Financial Literacy- Initiative taken by RBI PMJDY Performance of PMJDY Way forward

2

Structure of presentation

• Geographical area – 7th in the world -

Widely dispersed terrain

• Population – 2nd in the world–1.25

billion

• By nominal GDP – 10th largest

economy in the world

• 31 States and 6 Union Territories, 673

districts, 600 thousand plus Villages

• Multilingual and multiethnic society

• Low level of General Literacy –

(74% in 2011; FEMALE-65%),

Large no. of Financially excluded

people (more than 50%)

3

Historical perspective towards F.I.

• Cooperative movement (1904) • All India Rural Credit Survey • Creation of all India banks like SBI • Cooperatives brought under -Banking Regulation

(1966) • Nationalisation of banks (1969) • Lead Bank Scheme –(SLBC-DLCC-BLCC structure) • Priority Sector Guidelines, revised in 2012 • Regional Rural Banks (1976) • Service Area Approach • NABARD (1982) • SHG-Bank Linkage (1989-92)

4

Why then F I has not happened

• Subsidy Based Approach- Interest rate relaxations • Target oriented • Policy intent- Simply help the poor - not directed towards

making them self sufficient • Never treated banking for poor as a viable commercial

business - A social obligation • Lack of integration with business plans of banks • Branches as only delivery mode- Focus shifted on

profitability during reforms era (1985-2005) - Unbanked areas neglected

• Absence of suitable technology to reach large geography economically

• Lack of MIS-data • Driven only through public sector banks • Cooperatives - poor performance (large were unlicensed)

5

Why then F I has not happened- Definition of F.I.

• Technology is now available

• Branchless modes of delivery innovated

• Focus shifted from growth to inclusive growth

• Realised that poor is bankable

• Importance given to sustainability, viability & scalability

• Financial Inclusion has been comprehensively defined

Financial Inclusion is the process of ensuring access to appropriate financial products and services needed by all sections of the society in general and vulnerable groups such as weaker sections and low income groups in particular at an affordable cost in a fair and transparent manner by mainstream institutional players.

6

FINNANCIAL INCLUSION STRATEGY

Planned and Structured approach

Roadmap for providing banking

services in all unbanked villages

Adopted Bank-led model

Other intermediaries to partner with banks

Coverage of remote locations

Through B & M Branches and

through Branchless modes

Emphasis on Financial Education

Integrating awareness and

access of banking services

Financial Inclusion Strategy

BNM-AFI Training Programme -Financial Inclusion Strategy & Data (25-28 November 2014)

Our Strategy to Financial inclusion

• A Planned and Structured approach-to connect masses to mainstream financial institutions

• Adopted Bank-led model for financial inclusion –BC/BF models - Other intermediaries to partner with banks

• Leveraging on technology- ICT based delivery model- User friendly-Cost effective- Cover remote locations

• Emphasis on doing it as a normal business • Delivery Model – Combination of Brick & Mortar Branches and ICT based BC

outlets • Financial Literacy as an integral part of FI A bouquet of Financial services- Minimum four products

– A savings cum overdraft account – A pure savings account, ideally a recurring or variable recurring deposit – A remittance product to facilitate EBT and other remittances – Entrepreneurial credit products like a General Purpose Credit Card

(GCC) or a Kisan Credit Card(KCC) Branch authorisation simplified Banks mandated to open 25 % of all new branches in unbanked rural centers

8

• Improve financial access through financial education Objective

• Villages and unbanked pockets in urban locations

Focus

• Multi Agency-Partnership with Government & other stakeholders Approach

• FSDC - Technical Group on FI&FL - Financial Sector Regulators, Government, Education Boards, Curriculum Developers as members

Guidance

Our Strategy to Financial inclusion

9

Financial Inclusion Institutional Framework

Partnership with other stakeholders

Financial Literacy Centres

Lead District Managers

State/ UT Level Bankers Committees

Scheduled Commercial Banks & RRBs

Financial Inclusion Advisory Committee of RBI

Financial Stability Development Council (FSDC)

FSDC Technical Group on Financial Inclusion and Financial Literacy

Government of India and Reserve Bank of India

Other regulators, Govt. organisations / agencies, NGOs, etc.

942 FLCs (Mar 2014)

All 673 Districts (Mar 2014)

29 States and 7 UTs

1,20,344 branches (Sep 2014)

Headed by DG of RBI

Headed by Union Finance Minister

Headed by Deputy Governor of RBI

Remarks


Technical Group on Financial Inclusion and Financial Literacy under FSDC

• Group formed in August 2011 under the aegis of FSDC- quarterly review meetings are held

• To coordinate efforts of all the financial sector regulators.

• DG in charge of FSU as Chairman, Secretary- DFS, DEA(FSDC office), senior executives of SEBI, IRDA, PFRDA,FMC, NCFE as members

• National Strategy on Financial Education prepared ,

• National Centre for Financial Education formed with representation from all regulators, MOF, CBSE, NCERT- to implement National Strategy

• Financial Education to be included in the School Curriculum –to be integrated into existing subject of Class VI to Class X

11 BNM-AFI Training Programme -Financial Inclusion Strategy & Data (25-28 November 2014)

National Strategy for Financial Education

• National Strategy for Financial Education (2012-13) prepared by FSDC Technical Group on FI and FL – Timeframe for implementation is 5 years

• Co-existence of financially excluded population with the financially included who use sophisticated financial products called for tiered approach as under:

• Level 1: Financially excluded population on basic financial education in order to link them to the formal financial sector

• Level 2: Financially included consumers with sector-focused approach on various financial products and services to enable them to make informed choices

• Level 3: To ensure consumer protection for all users



• National Strategy for Financial Education is now integrated in the Financial Inclusion Agenda

• Key component of the National Strategy is a continuum of financial literacy, financial education and consumer protection

• NSFE to create dedicated institutional structure to create standard financial education material and maintain website on finance which will be a one-stop repository for all financial activities

• Coordination with regulators such as the Reserve Bank of India, the Securities and Exchange Board of India, the Insurance Regulatory and Development Authority, the Pension Fund Regulatory and Development Authority, Forward Markets Commission, etc. and NGOs, MFIs, etc.


Adoption of Financial Inclusion as Policy of RBI …………(Recap)

• Annual Policy Statement 2005-06 of RBI – Adoption of Financial Inclusion as a policy by Reserve

Bank of India

• Facilitating Financial Inclusion and monitoring Financial Inclusion Plans (FIPs) of banks.

• Enabling Financial Literacy initiatives through policy intervention.

• Taking banking services to the masses and making them participate in the developmental process of the economy


Financial Inclusion Broad Definition.docx







Initiatives of RBI Project Financial Literacy ……(Recap)

• Reserve Bank of India has undertaken a project entitle “Project Financial Literacy”

• Trilingual Forms / Brochures / Pamphlets to be used by banks (Dec 2005)

• Banking Services by Business Facilitators and Business Correspondents (Jan 2006)

• Financial Literacy and Credit Counselling Centres (FLCC) – Model Scheme (Feb 2009)

• FLCC support to Lead Bank from Financial Inclusion Fund (FIF) (Dec 2010)

• FLCCs at all levels – Block, District, Town and City levels (Mar 2011)


20051230 - FI - Trilingual Form-Brochure-Pamphlets-RRBs.pdf

20060125 - FI by BF and BCs - DBOD.pdf

20090204 - FLCC - Model Scheme - CO Cir.pdf

20101209 - FLCC - Setting up - Support to Lead Bank from FIF.pdf

20110331 - FLCC - Establishment - CO Cir.pdf

20110331 - FLCC - Establishment - CO Cir.pdf







Initiatives of RBI Project Financial Literacy

• Roadmap Phase-I (2010-13) - Provision of Banking Services in villages having population over 2000 by March 2013 (Nov 2009)

– Sub-Committee of DCC to draw Roadmap by March 2010

– Reporting Format

• Roadmap Phase-II (2013-16) - Provision of banking services in villages with population below 2000 by March 2016 (June 2012)

– To cover about 4,90,000 unbanked villages by March 2016

– A total of 383,804 villages covered by March 2014

• Financial Inclusion Plan (FIP) 2013-16: Disaggregation State-wise upto HO/CO and Branch Level from April 2013 (May 2013)

• Roadmap and FIP go hand in hand with Financial Literacy campaigns


20091127 - HLC review LBS - Roadmap over 2000 popln by March 2011.pdf

20120619 - Roadmap - below 2000 popln to SLBC Convenors.pdf

20130509 - FIP Disaggregation - Letter to Banks.pdf







RBI Guidelines and Materials on Financial Literacy

• Financial Literacy Centres (FLC) Guidelines – Quarterly Reporting Format (June 2012) for

– Two essentials 'Financial Literacy' and easy 'Financial Access'.

– FLCs and rural branches of banks are required to conduct at least one Financial Literacy Camps every month.

• Comic books, pamphlets, brochures and posters published and made available in RBI website

• Standardized Financial Literacy Materials (Jan 2013)

published for use in Financial Literacy Camps.


20120606 - FLCamps - Guidelines - Reporting format.pdf

20130131 - FL Materials - FLCamps - Guidelines, Materials and Monthly Holding.pdf







Financial Literacy Materials of RBI

• RBI prepared Standardized FL Materials consisting of:

1. Financial Literacy Guide - Ready reckoner for trainers - Contains 5 Sections - 50 Questions - Money Management, Savings, Saving with banks, Borrowings, Borrowing from banks

2. Financial Diary - For distribution to target audience - Financial planning - Record income and expenses - on Weekly / Monthly / Yearly basis

3. A set of 16 Financial Literacy Posters - Pictorial Communication – Appealing slogans for display

• Available in 13 regional languages on RBI Website (www.rbi.org.in/financialeducation/home.aspx)


FL Guide - English.pdf

FL Diary - English.pdf

FL Poster - English.pdf

http://www.rbi.org.in/financialeducation/home.aspx







Financial Literacy Material

Financial Literacy Guide-Trainer’s

Guide 5 Sections-

50 Questions

Financial Diary-

Facilitate Financial Planning to record income

and expenses- Weekly/Monthly/ Yearly

Set of 16 posters-Basic Messages Pictorial

Communication- Appealing Slogans

Basic Concepts for unbanked Audience- Hindi and English and 13 regional

languages. Available on RBI Website

http://www.rbi.org.in/financialeducation/FinancialLiteracyGuide.aspx


Financial Literacy-Material

24

Financial Literacy Messages

1. Why save? 11. What is the difference between saving and investment?

2. Why invest? 12. Why borrow for income-generating purposes?

3. Why insure? 13. Why repay loans?

4. Why financial planning? 14. Why repay loans on time?

5. Why will you need a regular stream of income post-working life – why pensions?

15. Why do you need insurance?

6. Why save or invest regularly and consistently?

16. What is interest? How do moneylenders charge very high interest rates?

7. Why insure fully? 17. Why and how can you evaluate the various products available?

8. Why save with banks? 18. What are the dos and don’ts of investment?

9. Why borrow within limits? 19. What are investors’ rights and responsibilities?

10. Why borrow from banks? 20. What mechanisms are available to redress grievances?


Literacy Camps – Guidelines

• Annual calendar- Advance publicity-Involvement of Local Government , prominent persons, NGOs etc, Data base of participants

3 sessions- 2 hrs each- Spread over three months

• Understanding of Basic financial concepts

• Financial Planning –How to use financial diary

• Concept of door step banking ( Branchless)

First Session

• Introduction -Business Correspondent (BC)

• Services available through BC

• Demo of ICT device - Modus operandi

• Account Opening

Second Session-Fortnight after first session

• Timely delivery of smart cards

• Start of BC operations

Visit - 15 days after second session-To ensure

• Feedback from villagers & BC

• Review usage of accounts – Solve operational issues at site

Third Session-2 months after second session

Follow up transaction levels- Regular Reporting system 26

Manage Your Finance

1. UNDERSTAND YOUR EXPENSES

2. DO NOT SPEND MORE THAN YOUR INCOME

3. PLUG NON ESSENTIAL EXPENSES & INCREASE YOUR SAVINGS

4. ACHIEVE YOUR GOAL WITH FINANCIAL PLANNING

5. THINK TWICE BEFORE SPENDING

6. THE LESS YOU SPEND , THE MORE YOU CAN SAVE

27

SAVINGS

7. SAVE MONEY FOR LIFE CYCLE NEEDS

8. DO NOT LOOSE YOUR HARD EARNED MONEY, ALWAYS SAVE IN A BANK ACCOUNT

9. SAVING ACCOUNT IN A BANK IS THE KEY TO ALL OTHER SERVICES

10. BANK IS NOW AVAILABLE AT YOUR DOOR STEP

28

Borrowings

11. MANAGE YOUR DEBT OTHERWISE DEBT WILL DAMAGE YOU

12. BORROW TO UNDERTAKE AN ACTIVITY WHICH ENHANCES YOUR INCOME

13. BANKS ARE TRANSPARENT AND CHARGE LESS INTEREST

14. A BANK MEETS ALL YOUR REQUIREMENTS

29

Activities of Financial Literacy Centres

SR Particulars of activities

(as on 31 March each year) In the year

2013 In the year

2014 Progress in

2 years

1 No. of Outdoor Activities conducted

40838 56985 97823

2 Outdoor activities- No. of persons participated

1733198 1.73 bn

3178161 3.18 bn

4911359 4.91 bn

3 Indoor activities- No. of persons participated

483980 647556 1131536

4 Total No. of Persons participated - Outdoor & Indoor activities

2217178 2.22bn

3825717 3.82 bn

6042895 6.04 bn


Modes to Reach the un-banked

Mobile Van banking BC visiting remote locations

BC outlet located in a village A low cost rural bank branch


31

Technology for the un-banked

Issue of Smart Card

Customer’s enrollment

Switch to connect all banks

Bank Server

Operating through Smart Card on Hand Held Machine


How does it work

ICT Device - Components Customer Authentication at BC

Customer receiving Money BC initiating a transaction


33

Financial Literacy for un-banked

Financial Literacy Centre - Awareness camp Literacy drive by RBI

Accounts opened in camps Women getting linked to banks


34

Catching them young

Children learning to operate Opening accounts for children

Curious to know more about banks Financial Literacy in a school


35

Educating for inclusion

At a busy suburban station in Mumbai


36

Impact of Activities of Financial Literacy Centres

37

• Banking connectivity available to more than 408,000 Villages,

47,000 through Branches, others through Branchless modes

• 65,000 urban unbanked locations connected through Branchless

modes

• 250 Million Basic Saving Bank Deposit(BSBD) accounts

• 122 million accounts through BC based Branchless modes

• 48 Million people provided small revolving credit – Business

purpose –Farm sector and Non Farm Sector


Impact of Activities of Financial Literacy Centres

38

• Findings of Impact Study in October 2013 across 46 Districts in 23 States with 730 participants who had attended the Financial Literacy Camps:

• 99% of the participants had got linked to formal banking system

• Saving account (89%) is the most used banking product

• 44% of the participants had availed of credit product

• Remittances and Direct Benefit Transfer (DBT) were the least used product (20%)

• Financial Literacy activities of rural branches of banks have been placed under structured monitoring mechanism from the quarter ended June 2014


Funds for Financial Education

• Financial Inclusion Fund (FIF) managed by National Bank for Agriculture and Rural Development (NABARD) -Rs. 5 billon each

• Prioritized activities / institutions for support from FIF: • Training and Capacity Building of the staff of cooperatives including

Primary Agricultural Cooperative Society (PACS)

• Training and Capacity Building of the staff of Regional Rural Banks (RRBs)/ Business Correspondents (BC)/ Business Facilitators (BF)

• Financial Literacy Campaign/ Programmes

• Projects involving awareness at field level and support in opening of accounts for micro insurance / pension

• Generic content to be developed on Financial Literacy

• National Skill development Fund- Rs 10 Billion- Creating a pool of 15o Million skilled workers by 2022

• Set up National Level Infrastructure- Unique Identification Number (UID) –Biometric Authentication


Funds for Financial Education and Other Developments in FI

• Creation of Depositors Education and Awareness Fund Scheme, (DEAF) 2014 (Mar 2014)

– Unclaimed deposit for 10 yrs in banks to go to the Fund

– Part of the fund to be utilised to promote financial literacy awareness

• Further simplification of KYC Norms – One documentary proof of address for opening of bank account (June 9, 2014)

• NBFC-NDs as BCs subject to conditions and Distance Criteria (June 24, 2014)


20140321 - Depositors Edn and Awareness Fund Scheme 2014 - Sec 26A of BR Act 1949.pdf



Strategy planned

• All 6 lakh villages to be covered

• Focus on increasing rural branches

• Opening accounts of all eligible individual ACCESS

• Financial Inclusion Centers-Service branch for BCs

• Grievance Redressal ,Cash Management, BC Supervision

• LPG Distributors as BC/BFs

BC MODEL

• Leverage on DBT implementation

• Experiment innovations– Remittance for Migrants

• Hassle free Emergency credit (In built OD)

• Entrepreneur Credit- KCCs & GCCs

TRANSACTION

• National Strategy on Financial Education

• Dedicated Website- Inclusion in School Curriculum

• Financial Literacy Camps

FINANCIAL EDUCATIO

N


41

Funds for Financial Education and Other Developments in FI

• Creation of Depositors Education and Awareness Fund Scheme, (DEAF) 2014 (Mar 2014)

– Unclaimed deposit for 10 yrs in banks to go to the Fund

– Part of the fund to be utilised to promote financial literacy awareness

• Further simplification of KYC Norms – One documentary proof of address for opening of bank account (June 9, 2014)

• NBFC-NDs as BCs subject to conditions and Distance Criteria (June 24, 2014)


20140321 - Depositors Edn and Awareness Fund Scheme 2014 - Sec 26A of BR Act 1949.pdf



PMJDY

Phase I

(15 August 2014– 14 August 2015)

Phase II

(15 August 2015-14 August 2018)

Pradhan Mantri Jan Dhan Yojana


43

Pradhan Mantri Jan-Dhan Yojana

• Objective of "Pradhan Mantri Jan-Dhan Yojana (PMJDY)" is ensuring access to various financial services like availability of basic savings bank account, access to need based credit, remittances facility, insurance and pension to the excluded sections i.e. weaker sections & low income groups. This deep penetration at affordable cost is possible only with effective use of technology.

• PMJDY is a National Mission on Financial Inclusion encompassing an integrated approach to bring about comprehensive financial inclusion of all the households in the country.

• The plan envisages universal access to banking facilities with at least one basic banking account for every household, financial literacy, access to credit, insurance and pension facility.

44

Prime Minister Jan Dhan Yojana (PMJDY) Objective

Pradhan Mantri Jan-Dhan Yojana

• Objective of "Pradhan Mantri Jan-Dhan Yojana (PMJDY)" is ensuring access to various financial services like availability of basic savings bank account, access to need based credit, remittances facility, insurance and pension to the excluded sections i.e. weaker sections & low income groups. This deep penetration at affordable cost is possible only with effective use of technology.

• PMJDY is a National Mission on Financial Inclusion encompassing an integrated approach to bring about comprehensive financial inclusion of all the households in the country.

• The plan envisages universal access to banking facilities with at least one basic banking account for every household, financial literacy, access to credit, insurance and pension facility.


Prime Minister Jan Dhan Yojana (PMJDY) Financial Inclusion on a Mission Mode

• Under the Department of Financial Services, Ministry of Finance, Government of India

• Announced by the Prime Minister of India on August 15, 2014 • Formally launched on August 28, 2014 • Focus shift from Villages to Households and coverage of full

geography

• Focus on use of Technology • Renewed focus on financial literacy campaign • Facility of call centre & toll free number by Indian Banks

Association

• Aggressive media campaign to increase citizens awareness • Strengthened monitoring mechanism

46


(PMJDY) contd..

6 pillars

Universal Access to banking facilities

Basic Accounts with O/D facility and RuPay

Debit card

Financial Literacy Programmes

Creation of Credit Guarantee Fund

Micro Insurance

Unorganized sector pension schemes


Prime Minister Jan Dhan Yojana (PMJDY) Financial Inclusion -6 Pillers

47

Prime Minister Jan Dhan Yojana (PMJDY) 6 Pillars under FI on a Mission Mode

Mission Mode Objectives under PMJDY rests on 6 Pillars :

1. Universal access to banking facilities: Mapping of every district of the country into Sub Service area (SSA) catering to 1000-1500 households in a manner that every habitation has access to banking services within 5 km by March 2016

2. Financial Literary Programme: To be extended to the block level from district level at present by March 2016

3. Providing Basic Banking Accounts: to all families and to all beneficiaries of Government Scheme by March 2016 and then on an ongoing basis


Prime Minister Jan Dhan Yojana (PMJDY) 6 Pillars under FI on a Mission Mode

4. Micro Credit Availability & Creation of Credit Guarantee Fund for coverage of defaults in such accounts : Facility of an overdraft of Rs 5000/-through debit card to every basic banking account holder on completion of financial literary training by March 2016

5. Micro Insurance: By March 2017 and then on an ongoing basis.

6. Unorganized sector Micro Pension schemes like Swavlambam: By March 2017 and then on an ongoing basis


Prime Minister Jan Dhan Yojana (PMJDY) Monitoring Mechanism

50

Mission Head [Finance Minister]

Steering Committee [Secretary (FS)]

Mission Director [Joint Secretary (FS) ]

State Level Implementation Committee

District Level Implementation Committee

Ministers of Communications, Rural Development, Secretary (FS), Secretary

(RD), Secretary (Telecom), Governor RBI, Chairman IBA


Prime Minister Jan Dhan Yojana (PMJDY) Financial Inclusion on a Mission Mode

• Target to open 75,000,000 bank accounts for the financially excluded population under PMJDY by August 15, 2015, but revised to January 26, 2015.

• Banks achieved opening of more than 78.1 million PMJDY accounts as on November 20, 2014, well ahead of date.

• Financial Literacy Centres to be set up at the block levels in rural areas

• Financial Literacy Cell to be set up in rural branches of banks

51


PMJDY- Progress as on November 20, 2014

S.

No

No Of Accounts

(In Lacs) No Of Rupay

Debit Cards

(In Lacs)

Balance In

Accounts

(In Lacs)

No Of Accounts

With Zero

Balance

(In Lacs) Rural Urban Total

1 Public Sector Banks 343.71 288.89 632.6 442.79 502503.7 472.57

2 Regional Rural Banks 113.12 20.07 133.19 18.83 81598.72 103.93

3 Private Banks 10.47 10.75 21.22 9.47 37230.9 14.01

Total 467.30 319.71 787.01

(78.7 m)

471.09

(47.1 m)

621333.32

(62.13 b)

590.51

(59.0 m)


PMJDY- Progress as on November 20, 2014

http://pmjdy.gov.in/account-statistics-bankwise-table.aspx?yk5LV86RBm+w8UWGuIqJ9Qj0gtLNyEU0ZBb8yLVW+E0=

http://pmjdy.gov.in/account-statistics-bankwise-table.aspx?mOikSAGIOPDiknlxuRxQgVBCnULK/EeJPrLXBbAmR4o=

http://pmjdy.gov.in/account-statistics-bankwise-table.aspx?6ZhIn9ur6YMvUyANTIDI8w==

Financial Inclusion and Financial Literacy – Initiatives in a Nutshell

53

Financial Literacy & Financial Inclusion to go together - Financial Stability Development Council (FSDC) - Mandated to focus on Financial Inclusion and Financial Literacy

A technical group on Financial Inclusion and Financial Literacy under aegis of FSDC –Coordinating the efforts of all Financial Sector Regulators

National Strategy on Financial Education prepared

Financial Literacy Centres set up in most of the districts (650+)

FLCs and rural bank branches (35000+) - To conduct awareness camps every month

Comprehensive Operational Guidelines for conduct of camps - Standardised Financial Literacy Material (FL Guide, Diary and Posters)

Mass scale awareness- Outreach Visits, Camps, Quiz, Essay Competition, Role Play, Comic Books, Fairs and Exhibitions, etc.

Financial Education website (RBI Website > www.rbi.org.in/financialeducation/home.aspx)

Financial Literacy - To be included in School Curriculum at National Level

PMJDY for Financial Inclusion on a Mission Mode


RBI-Website.jpg

http://www.rbi.org.in/

RBI-FI-Website.jpg

A Thought

54

FINANCIAL LITERACY: a step to

FINANCIAL INCLUSION

FINANCIAL INCLUSION: TREE OF PROSPERITY

HAVE COMPASSION

FOR THE POOR


THANK YOU


Smart Card

Biometric -Using Handheld Machine

Online & offline

Kiosk Model

Bio-metrically enabled, Internet based

Online, Real time banking transactions

Mobile Phone

Uses low end mobile with PIN & signature booklet, avoids cost of Handheld machine and smart cards etc. 3 level security check - Mobile number, Booklet & Security PIN.

Use of Technology - BC Models

56

Smart Card Based Model

Issue of Smart Card

Customer’s enrollment

Bank’s CBS

FI Server

Transactions with Hand Held Machine

57

Customer sends money from

BC(Retail shop)

Beneficiary gets money

Transfer of funds 3 Level security check- Mobile number, Booklet & Security PIN

Bank server

Mobile service provider

Mobile based Model

58

CU

STO

MER

S

CO

RE

BA

NK

ING

SMART CARD Based 1

MOBILE SERVICE PROVIDER

KIOSK BANKING SERVER

SWITCH

SMART CARD TSP

Stand

ardised

message /d

ata

CB

S form

at

ICT Model- General Overview

SMART CARD Based 2

MOBILE PHONE Based 1

MOBILE PHONE Based 2

KIOSK Based 2

KIOSK Based 1

59

UIDAI Model- Enabling Inclusion

Basic Saving account

Business

Correspondents

Mobile Phone banking

Settlement Authority Any account, anywhere technology

POS machine Banking

60

UID Enabled Direct Transfer

61

Muster roll with Ram’s UID

GP NREGA

Block NREGA

Government bank a/c

UID enabled Resident no -frills bank a/c – existing or new

Central switch at NPCI

ID mapper

Resident - Ram UID 2563 8564 4663

Transfer money To UID 2653 8564 4663 Amount Rs546

Debit Government a/c Credit Ram’s a/c

Info IVRS/ SMS

4. Authenticate and execute

2. Money transfer instruction + biometrics

UIDAI based Transactions

Resident - Ram UID 2563 8564 4663

BC (Kirana, SHG, PO etc)) With Micro-ATM UID: 7233 5968 3094

TransferMoney From UID 2653 8564 4663 To UID 7233 5968 3094 Amount 300

Ram’s bank a/c

BC’s bank a/c

NPCI switch

ID mapper

1. Withdrawal request

3.NPCI request

5. Authenticate

6. Debit

7. Credit

8. Info- IVRS/ SMS

9. Cash

62

Documents

Sequencing of Financial Education Integrated with ...s3.amazonaws.com/media.guidebook.com/service/FxvXB8DAqcN54Ja… · Sequencing of Financial Education Integrated with Financial