BNM-AFI Training Programme

Transcription

1 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

2 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

3 Structure of presentation Geographical area 7 th in the world - Widely dispersed terrain Population 2 nd in the world 1.25 billion By nominal GDP 10 th 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

4 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 ( ) 4

5 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 ( ) - 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

6 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

7 Financial Inclusion Strategy 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

8 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

9 Our Strategy to Financial inclusion Objective Focus Approach Improve financial access through financial education Villages and unbanked pockets in urban locations Multi Agency-Partnership with Government & other stakeholders Guidance FSDC - Technical Group on FI&FL - Financial Sector Regulators, Government, Education Boards, Curriculum Developers as members 9

10 Financial Inclusion Institutional Framework Government of India and Reserve Bank of India Financial Stability Development Council (FSDC) FSDC Technical Group on Financial Inclusion and Financial Literacy Remarks Headed by Union Finance Minister Headed by Deputy Governor of RBI Financial Inclusion Advisory Committee of RBI Scheduled Commercial Banks & RRBs State/ UT Level Bankers Committees Lead District Managers Financial Literacy Centres Partnership with other stakeholders Headed by DG of RBI 1,20,344 branches (Sep 2014) 29 States and 7 UTs All 673 Districts (Mar 2014) 942 FLCs (Mar 2014) Other regulators, Govt. organisations / agencies, NGOs, etc.

11 Technical Group on Financial Inclusion and Financial Literacy under FSDC Group formed in August 2011 under the aegis of FSDCquarterly 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

12 National Strategy for Financial Education National Strategy for Financial Education ( ) 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 12

13 National Strategy for Financial Education 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. 13

14 Adoption of Financial Inclusion as Policy of RBI (Recap) Annual Policy Statement 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 14

15 National Strategy for Financial Education 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. 15

16 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) 16

17 National Strategy for Financial Education 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. 17

18 Initiatives of RBI Project Financial Literacy Roadmap Phase-I ( ) - 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 ( ) - 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) : Disaggregation Statewise upto HO/CO and Branch Level from April 2013 (May 2013) Roadmap and FIP go hand in hand with Financial Literacy campaigns 18

19 National Strategy for Financial Education 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. 19

20 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. 20

21 National Strategy for Financial Education 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. 21

22 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 ( 22

23 National Strategy for Financial Education 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. 23

24 Financial Literacy-Material Basic Concepts for unbanked Audience- Hindi and English and 13 regional languages. Available on RBI Website 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 24

25 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? 6. Why save or invest regularly and consistently? 15. Why do you need insurance? 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? 25

26 Literacy Camps Guidelines 3 sessions- 2 hrs each- Spread over three months Annual calendar- Advance publicity-involvement of Local Government, prominent persons, NGOs etc, Data base of participants First Session Second Session-Fortnight after first session Visit - 15 days after second session-to ensure Third Session-2 months after second session Understanding of Basic financial concepts Financial Planning How to use financial diary Concept of door step banking ( Branchless) Introduction -Business Correspondent (BC) Services available through BC Demo of ICT device - Modus operandi Account Opening Timely delivery of smart cards Start of BC operations Feedback from villagers & BC Review usage of accounts Solve operational issues at site Follow up transaction levels- Regular Reporting system 26

27 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

28 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

29 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

30 Activities of Financial Literacy Centres SR Particulars of activities (as on 31 March each year) No. of Outdoor Activities conducted Outdoor activities- No. of persons participated Indoor activities- No. of persons participated Total No. of Persons participated - Outdoor & Indoor activities In the year 2013 In the year 2014 Progress in 2 years bn bn bn bn bn bn 30

31 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

32 Technology for the un-banked Customer s enrollment Switch to connect all banks Issue of Smart Card Operating through Smart Card on Hand Held Machine Bank Server

33 How does it work ICT Device - Components Customer Authentication at BC Customer receiving Money BC initiating a transaction 33

34 Financial Literacy for un-banked Financial Literacy Centre - Awareness camp Literacy drive by RBI Accounts opened in camps Women getting linked to banks 34

35 Catching them young Financial Literacy in a school Curious to know more about banks Opening accounts for children Children learning to operate 35

36 Educating for inclusion At a busy suburban station in Mumbai 36

37 Impact of Activities of Financial Literacy Centres 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 37

38 Impact of Activities of Financial Literacy Centres 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

39 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 39

40 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) 40

41 ACCESS Strategy planned All 6 lakh villages to be covered Focus on increasing rural branches Opening accounts of all eligible individual BC MODEL TRANSACTIO N FINANCIAL EDUCATIO N Financial Inclusion Centers-Service branch for BCs Grievance Redressal,Cash Management, BC Supervision LPG Distributors as BC/BFs Leverage on DBT implementation Experiment innovations Remittance for Migrants Hassle free Emergency credit (In built OD) Entrepreneur Credit- KCCs & GCCs National Strategy on Financial Education Dedicated Website- Inclusion in School Curriculum Financial Literacy Camps 41

42 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) 42

43 Pradhan Mantri Jan Dhan Yojana PMJDY Phase I (15 August August 2015) Phase II (15 August August 2018) 43

44 Prime Minister Jan Dhan Yojana (PMJDY) Pradhan Mantri Jan-Dhan Yojana Objective 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

45 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. 45

46 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

47 Prime Minister Jan Dhan Yojana (PMJDY) (PMJDY) contd.. Financial Inclusion -6 Pillers Universal Access to banking facilities Unorganized sector pension schemes Micro Insurance 6 pillars Creation of Credit Guarantee Fund Basic Accounts with O/D facility and RuPay Debit card Financial Literacy Programmes 47

48 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 households in a manner that every habitation has access to banking services within 5 km by March Financial Literary Programme: To be extended to the block level from district level at present by March Providing Basic Banking Accounts: to all families and to all beneficiaries of Government Scheme by March 2016 and then on an ongoing basis 48

49 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 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 49

50 Prime Minister Jan Dhan Yojana (PMJDY) Monitoring Mechanism Mission Head [Finance Minister] Steering Committee [Secretary (FS)] Ministers of Communications, Rural Development, Secretary (FS), Secretary (RD), Secretary (Telecom), Governor RBI, Chairman IBA Mission Director [Joint Secretary (FS) ] State Level Implementation Committee District Level Implementation Committee 50

51 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, 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

52 PMJDY- PMJDY- Progress as on November 20, 2014 Progress as on November 20, 2014 S. No No Of Accounts (In Lacs) Rural Urban Total No Of Rupay Debit Cards (In Lacs) Balance In Accounts (In Lacs) No Of Accounts With Zero Balance (In Lacs) 1 Public Sector Banks Regional Rural Banks Private Banks Total (78.7 m) (47.1 m) (62.13 b) (59.0 m) 52

53 Financial Inclusion and Financial Literacy Initiatives in a Nutshell 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 > Financial Literacy - To be included in School Curriculum at National Level PMJDY for Financial Inclusion on a Mission Mode 53

54 A Thought FINANCIAL LITERACY: a step to FINANCIAL INCLUSION FINANCIAL INCLUSION: TREE OF PROSPERITY HAVE COMPASSION FOR THE POOR 54

55 THANK YOU

56 Use of Technology - BC Models 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. 56

57 Smart Card Based Model Customer s enrollment Bank s CBS Transactions with Hand Held Machine Issue of Smart Card FI Server 57

58 Mobile based Model Customer sends money from BC(Retail shop) Mobile service provider Transfer of funds Beneficiary gets money 3 Level security check- Mobile number, Booklet & Security PIN Bank server 58

59 CUSTOMERS ICT Model- General Overview CORE BANKING SMART CARD Based 1 SMART CARD Based 2 MOBILE PHONE Based 1 MOBILE PHONE Based 2 SMART CARD TSP MOBILE SERVICE PROVIDER Standardised message /data SWITCH CBS format KIOSK Based 1 KIOSK Based 2 KIOSK BANKING SERVER 59

60 UIDAI Model- Enabling Inclusion Basic Saving account Business Correspondents Mobile Phone banking Settlement Authority Any account, anywhere technology POS machine Banking 60

61 UID Enabled Direct Transfer Transfer money Block NREGA To UID Amount Rs546 GP NREGA Government bank a/c Central switch at NPCI ID mapper Resident - Ram UID Debit Government a/c Credit Ram s a/c Muster roll with Ram s UID Info IVRS/ SMS UID enabled Resident no -frills bank a/c existing or new 61

62 UIDAI based Transactions ID mapper 8. Info- IVRS/ SMS Resident - Ram UID Debit 4. Authenticate and execute Ram s bank a/c 5. Authenticate NPCI switch 1. Withdrawal request 9. Cash 3.NPCI request 7. Credit TransferMoney From UID To UID Amount Money transfer instruction + biometrics BC s bank a/c BC (Kirana, SHG, PO etc)) With Micro-ATM UID: