A.P. Smart Card Project May 2011
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The document outlines a smart card program in India that aims to promote financial inclusion. It discusses objectives to expand banking access to rural poor, ensure timely benefits delivery, and reduce fraud. A multi-phase approach is described involving enrolling beneficiaries, issuing smart cards, appointing business correspondents, and enabling payments and services at the village level using biometric authentication. Implementation progress highlights over 100 million cards issued and over $2 billion in payments processed across 23 districts.
A.P. Smart Card Project May 2011
- 1. Welcome Presentation on SMART CARD Commissioner, Rural Development
- 2. Outline of the presentation Objectives Approach Architecture Key Process Roles and responsibilities Phase – I Phase-II Progress at a glance
- 3. 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.
- 4. 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 .
- 5. 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)
- 6. Technology (M/s Fino) Code Receipt Generation Slot Slot to capture thumb print Slot to insert Operator / Customer card Arrow Key for starting the device F button 11001000… Image Template
- 7. 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)
- 8. 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..
- 9. 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..
- 10. 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.
- 11. 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.
- 12. 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.
- 13. Key-process 6. Data uploading CSP / BC uploads data of disbursements daily. MIS report on progress of disbursement is submitted to Government.
- 14. 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.
- 15. 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.
- 16. 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
- 17. 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..
- 18. Provide copies of Pension payment orders by 25 th 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..
- 19. 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.
- 20. 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.
- 21. 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.
- 22. Roles and responsibilities Role of Customer Service Provider (CSP) Shall operate the terminals. Shall disburse the pensions from 1 st of every month. Shall make payment of NREGS wages once in a week. Shall upload information on a daily basis.
- 23. Phase-I districts With service area approach Sn. District Bank Service Provider 1 Chittoore Axis FINO CORPORATION INTEGRA INGVB FINO SBI ALW UBI FINO Dept of Posts APOnline 2 East Godavari AB ATYATI CORPORATION FINO ICICI FINO INGVB FINO SBI ALW UBI FINO
- 24. Phase-I districts With service area approach CONTD Sl. No. District Bank Service Provider 3 Karimnagar ICICI FINO SBH HCL SBI ALW UBI FINO 4 Mahaboobnagar APGVB ALW CORPORATION FINO ICICI FINO SBH CORAMANDAL SBI ALW UBI FINO
- 25. Phase-I districts With service area approach CONTD Sl. No. District Bank Service Provider 5 Medak APGVB ALW CORPORATION FINO ICICI FINO SBH HCL SBI ALW UBI FINO 6 Warangal AB ALW APGVB ALW AXIS FINO CORPORATION FINO PNB ALW SBH ALW SBI ALW UBI ALW
- 26. 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
- 27. Phase – II districts – one bank one district model CONTD 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
- 28. Overall progress at a glance No. of districts : 23 No. of GPs where project is under way. : 22761 Target no. of benfs. under SSP & NREGS : 199.54 lakhs No. of benfs, enrolled : 140.67 lakhs No. of cards issued : 104.29 Lakhs Amount paid : Rs.2286.37 Crs
- 29. Overall progress at a glance No. of Districts Enrollment started : 23 SSP NREGA Total No.of GPs Enrollment started 21965 20515 21965 Target (No.of Beneficiaries) 71.92 lakhs 127.61 lakhs 199.53 lakhs No. of beneficiaries enrolled 52.62 lakhs 88.05 lakhs 140.67 lakhs No. of cards issued 41.22 lakhs 63.07 lakhs 104.29 lakhs GPs Payment started 13204 10995 15091 Amount paid Since Inception 1197.00 Cr 1089.37 Cr 2286.37 Cr