financial inclusion - definition

“Financial inclusion may be defined as the process of ensuring access to financial services and timely and adequate credit where needed by vulnerable groups such as weaker sections and low income groups at an affordable cost.”

Financial Inclusion - Definition

No-frill accounts OD facility in no-frill account Term Deposit/Recurring Deposit Small Credit (OGSC, OGC, GCC etc.) Insurance Remittance

Use of Smart card/ bio-metric card based technology through engagement of technology service provider.

Operational flow chart :- Capturing customer’s personal details & AOF in soft form. Uploading customer’s master file on technology provider’s

system Verification & KYC compliance by branch. Opening of account. Activation of Card for transactions.

Transactions using hand held devices (POS) in villages Customer authentication through his/ her digitals on POS POS becomes ready for transaction by inserting/swiping

the bio-metric card. Cash transaction carried out Transaction transmitted to BC’s server through GPRS/

TCP/ IP protocol. Day’s transactions are forwarded to bank’s server. Transaction gets reflected in respective accounts the

following day. Thus Transaction cycle completes in 24 hours.

Initial deposit – with zero balance. Balance not to exceed Rs.50000/- in all

accounts taken together. Total credits in a/c not to exceed Rs.2 lac in

a year. Simplified KYC procedure. ATM Card facility allowed with nil annual

charges. Provision for over draft facility.

Loan Repayment-Weekly repayment allowed

Mode of disbursement- Cash disbursement

Loan amount – Up to maximum Rs. 25,000/-

No bill/receipt is required.

Concession of 0.5% to women borrowers.

No insistence on collateral security

ELIGIBLE ACTIVITIES

CROP PRODUCTION NEED

WORKING CAPITAL FOR ALLIED ACTIVITIES

REPAIRS OF MACHINERY.

SMALL CONSUMPTION NEEDS

Objective: To provide hassle free credit based on the

assessment of cash flow without insistence on security, purpose or end use of the credit

Loan Amount: Depends on cash flow of entire household Maximum limit not to exceed Rs 25,000/-Repayment Aggregate credits into the account during 12

months period should at least be equal to the amount of interest accrued in the account.

Deposit amount-Minimum Rs.5/-and multiples of Rs.5/-

Period of deposit- Minimum 12 months to 10 years

Loan Facility – Maximum 75% of the accrued amount of deposit.

Nomination facility available. Penalty for delay in installment & Premature

Closure – Nil Interest – Quarterly compounding

Survey of allotted villages. Display Map of the villages allotted along

with distance from the branch. Regular visit of allotted villages. Organization of awareness camp on FIP. Introduction of Business Correspondent Publicity on banking services to be offered Demonstration on use of Bio-metric card for

extending banking services. Sanction/ disbursement of small loans. Allowing overdraft facility

Ensure display of board at BC’s working place.

Ensure opening of No-frill Acs to each and every eligible households.

Ensure KYC compliance.

Extend full support & co-operation to BC.

Motivate villagers for small savings and recovery of loan.

Issue Pass Books to FIP customers.

Organization of credit camps to issue KCCs/ GCCs to all eligible farmers/ entrepreneurs.

1616