Welcome

Presentation on

A.P. SMART CARD PROJECT

A.V.V. PRASADAdditional Commissioner of Rural Development

Government of Andhra Pradesh

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 mainstream banking and

financial services to the poorest of the poor by using

technology based solutions.

Ensure efficient and timely transfer of government 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 outpost 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 A Little World )

Based on new generation Near Field Communications (NFC) mobile

phones; contactless 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. Release of funds & Cash delivery

– 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 to TSP &

Bank Servers.

– Disbursement data is shared by Bank to MNREGA

Server & SSP Server.

Roles and responsibilities

Role of Rural Development Department

– To lay down policy & govern the project.

– To allot areas to Banks

– Put in place appropriate systems and procedures for transfer of

payments.

– To conduct Monthly Review Meetings at State level

Roles and responsibilities

Role of Banks

– MoU with Government, Technology Service Provider &

Business Correspondent.

– Appoint, train and supervise BCs.

– Open SB account and issue Smart Card to beneficiaries.

– Credit pensions / wages to the account of the beneficiaries

– Maintaining centralized database.

– Provide all required MIS to Govt from time to time.

Role of District Collector:

– Oversee the entire implementation process.

– Conduct review meetings with Banks, TSP, BC &

MPDOs.

– Identify bottlenecks and inform to the State

Government.

Roles and responsibilities

Roles and responsibilities

Role of DRDAs

– Support 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

– Consolidating MIS reports and forwarding to Head

office.

– Pay 2% service charges on the value of pension

benefits disbursed in the district by the Bank after

reconciliation.

– Monitoring and periodical review.

Contd..

Roles and responsibilitiesRole 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,

Banks & Smart Card agencies.

Roles and responsibilities

Role of MPDOs.

– Schedule & organize enrolment process.

– Send electronic copy and hard copy of Wage payment

orders to the Banks.

– Transfer funds to the bank A/c

– Supply 2 copies of physical acquittance

– Ensure smooth disbursement of SSP and wages.

– Conduct Review Meetings at mandal level

Roles and responsibilities

Role of Business Correspondent (BC)

– Responsible for money evacuation from Bank to CSP &

from CSP to Bank.

– To contract, position & supervise CSPs.

– Provide training and handholding to CSPs.

– Ensure smooth disbursement of pensions and wages.

– To reconcile with Bank & Govt.

Roles and responsibilities

Role of Customer Service Provider (CSP)

– Operate the terminals & extend services at village level.

– To disburse the pensions once a month.

– To disburse NREGS wages once in a week.

– To pay cash and issue Transaction Print out.

– To upload information on a daily basis.

Phase-I districtsWith service area approach

Sn. District Bank Service Provider1 Chittoor CORPORATION INTEGRA

INDIAN BANK INTEGRA

Dept of Post APOnline

2 East Godavari AB ATYATI

Corporation FINO

ICICI FINO

Dept of Post APOnline

UBI FINO

Phase-I districtsWith service area approach

Sl.No.

District Bank Service Provider

3 Karimnagar ICICI FINO

SBH HCL

UBI FINO

4 Mahaboobnagar APGVB ALW

ICICI FINO

SBH CORAMANDAL

Dept of Post APOnline

UBI FINO

CONTD

Phase-I districtsWith service area approach

Sl.No.

District Bank Service Provider

5 Medak APGVB ALW

Corporation FINO

ICICI FINO

SBH HCL

Dept of Post APOnlineUBI FINO

6 Warangal AB ALW

APGVB ALW

AXIS FINO

Corporation FINO

SBH ALW

Dept of Post APOnlineUBI 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

Dept.of Posts APOnline

05 Guntur Andhra bank ATYATI

06 Khammam APGVB ALW

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

Department of Posts. APOnline

16 YSR Kadapa ICICI FINO

17 Hyderabad ICICI FINO

SPS Nellore ICICI TCS

CONTD

Overall progress at a glance

No. of districts : 22

No. of GPs where project is under way. : 21861

Target no. of benfs. under SSP & NREGS : 207.26 lakhs

No. of benfs, enrolled : 169.82 lakhs

No. of cards issued : 142.57 Lakhs

Overall progress at a glance

No. of Districts Enrollment started : 22

SSP NREGA Total

No.of GPs Enrollment started

20208 20435 20435

Target (No.of Beneficiaries)

70.96 lakhs 136.30 lakhs 207.26 lakhs

No. of beneficiaries enrolled 58.46 Lakhs 111.36 lakhs 169.82 lakhs

No. of cards issued 47.46 lakhs 95.10 lakhs 142.57 lakhs

GPs Payment started 17739 19823 19823