Tech BFSI 2014Bangalore – June 2014

Strategic Issuesin

Banking the Unbanked

A.V.V. PRASADAdditional Registrar of Cooperative Societies,

Andhra Pradesh, Hyderabad.avvprasad@yahoo.com

9676123427

GOI Benefits : Rs. 3 lakh Cr.

States Benefits : Rs. 4 lakh Cr.

Savings : 20 to 30%

Minimum Savings : Rs. 1,40,000 Cr per Annum

Commission @ 3.14 %: Rs. 21980 Cr

Potential turnover : Rs. 20 lakh Crores

Revenue @ 3% : Rs. 60,000 Crores

Clientele : 50 Crores

Coverage : Rural and Urban Areas

Job Creation : One Million

Bank Officers : 60,000

1) National Database : 61 Cr & Batting2) Unique Identity Universal Coverage Access3) Public Utility

Nominal cost of Services Authentication eKYC

ABPS AEPS

4) Reliable Robust Scalable Inter-operable

System of FI

1. DBT led Financial Inclusion

2. Plain vanilla FI suite: UIDAI-NPCI

◦ Plug & Play FI

◦ Suite of Products & Services

◦ Open Source Standard Packages

3. Business case for all Stake holders:

Banks (3) TSP BC CSP ◦ DBT Commission @ 3.14%◦ Fixed charges for FI Services

4. Electronic Bank Account

◦ Recurring Deposit

◦ Fixed Deposit

◦ Micro Loan

◦ Micro Insurance

◦ G2P Benefit disbursements

◦ Remittances P2P

◦ Bill Payments

6. Government Process Reengineering (GPR) for Benefit Disbursement

7. Models of FI

◦ Bank-TSP-BC-CSP

◦ Branch-BC-BF Model

◦ Kiosk Model

◦ White Label BC

◦ Access to ATMs, IMPS, Rupay Card

Nachiket Mor Committee Recommendations Issue of Aadhaar to all Law for Aadhaar & DBT Data Connectivity to all Villages, remote areas Solar Modules Cash Management: Cash in- Cash out Right to Service at reasonable charges &

interest rates Grievance Redressal System Complete Inter-operability