WELCOME Ms. Usha Thorat Dy. Governor, RBI Department of Rural Development Date: A.P.SMART CARD PROJECT

OUTLINE OF PRESENTATION  Pilot - Key process  Pilot - Coverage  Scaling up strategy  Status of scaling up  Time-line  Issues

Pilot- important features  Pilot in 6 mandals of Warangal district & in 2 mandals of Karimnagar distict  Disbursements thru smart cards for two schemes – SSP & NREGS.  RBI Steering Committee & Department of RD for facilitation and coordination support.  Infrastructure cost shared by the Government & the Banks.  GOAP pays 2% service charges.  GP level disbursement.  CSP is the Village Organisation.

Key- processes 1. Enrolment Department gives list of beneficiaries – SSP & NREGS. Concerned bank / Financial institution conducts an enrolment camp in the village. GPs, VOs assist in identification of beneficiaries. 6/ 10 finger prints, photo and other details of the beneficiary captured. An account will be opened. Contd..

Key- processes 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- processes 3. Business Correspondent & Customer Service Provider (CSP) Bank / FI appoints a business correspondent. 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. BC delivers service( payments) at GP level.

Key- processes 4. Fund flow Government issues instructions to the Banks / FI authorising payment. List of beneficiaries and authorised amount will be given. Individual account of beneficiary is credited. Cash is delivered in the village to CSP.

Key- processes 5. Disbursementes BC /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. MIS report an progress of disbursement is submitted to Government.

Pilot coverage WarangalKarimnagarTotal villages covered Beneficiaries covered 23,80327,35951,162 Payments made ( Rs. In lakhs)

Warangal - SSP Coverage MandalBank pensio ners Enroll cards issued Disb, throu gh card Manu ally disb. Total disb. No. Amoun t disb. lakhs Payi ng sinc e DharmasagarSBI May ’07 Raghunathapa lly Axis May ’07 HanumakondaUBI May ’07 Station Ghanapur APG VB Jun e ;07 GheeskondaAB Jun e,07 RaiparthySBH Jun e ‘07 Total

Warangal - NREGS coverage MandalBank Total beneficia ries Enroll cards issued Disb, through card Total disb. No. Amount disb. lakhs DharmasagarSBI RaghunathapallyAxis HanumakondaUBI Station GhanapurAPGVB GheeskondaAB RaiparthySBH Total

Comparison - before and after pilot Saving of Rs lakhs per annum after commencement of disbursement through Smart Card Expected savings of Rs cr. per year if up scaled for entire state Un disbursed pensions – breakup Never turned up for enrollment -474 (most likely bogus cases) Enrolled but did not turn up -810 (may or may not come back). Total

Strategy for Scaling up  Infrastructure to be provided by banks.  Government to bear 2% service charges.  To begin with, two schemes, SSP & NREGS disbursements to be taken up.  Other services will get added on subsequently.  Service area approach.  Phase I districts- Warangal, Karimnagar, Medak, Mahaboobnagar, Chittoor & East Godavari.

Role of GoAP  Formation of State and District Implementation Committee for overall coordination & supervision.  Orientation to govt. officials and public representatives.  Issue list of beneficiaries under NREGS & SSP to the banks.  Facilitate awareness campaign in all villages  Facilitate VOs in identification of customer service providers

Role of Banks MoU with Government. Finalsing TPs and BCs. Conduct enrolment camps at village level. Facilitate BC to appoint, train and enter into contract with CSPs. Open SB account and issue Smart Card to beneficiaries. Credit pensions / wages to the account of the beneficiaries and disbursement at village level. Maintaining centralized database and provide MIS

Scaling up- current status  13 banks came forward – SBI, SBH, Deccan Grameena Bank, APGVB, Union Bank of India, Indian Bank, Canara Bank, Corporation Bank, Central Bank of India, Bank of India, Punjab Natl Bank, Bank of Maharashtra & United Bank of India.  Out of 13 banks, 5 banks finalised BCs & TPs.  Only 5305 villages out of a total of 9069 villages covered.

Banks Consented Sl.No.Name of the Bank No. of villages 1State Bank of India1579 2A.P.G.V.Bank1184 3State Bank of Hyderabad853 4Indian Bank438 5Deccan Grameena Bank351 6Union Bank of India315 7Canara bank228 8Corporation Bank132 9Central Bank of India115 10Bank of India61 11Punjab National Bank49 12&13Bank of Maharashtra & United Bank of India0 Total 5305

Sl.No.Name of the Bank 1Andhra Bank1795 2Saptagiri Grameena Bank739 3Indian Overseas Bank256 4Ing Vysa Bank214 5Syndicate Bank259 6Vijaya Bank79 7Chaitanya Godavari Grameena Bank128 8Allahabad Bank66 9Bank of Baroda62 11United Commercial Bank96 12DCCB36 13South India Bank17 14Karur Vaisya Bank17 Total3764 Banks not consented

Status of Consent S.No Name of the District Total Villages in the district No. of village consented by banks Left over villages 1Warangal Karimnagar Medak Chittoor East Godavari Mahabubnagar Total (58.5%) 3764 (41.5%)

Status of Consent

Technical Providers & BCs S.NOName of the BankName of the TPName of the BC 1SBIA Little WorldZero MASS 2SBH A Little WorldZero MASS SpancoSeed Fino Ltd.,Fino Fintech foundation 3APGVBA Little WorldZero MASS 4Deccan Grameena Bank Fino Ltd.,Fino Fintech foundation 5Union Bank of India A Little WorldZero MASS FinoFino Fintech foundation

Time line for implementation  Training of public representatives & officials: -by 12 th Jan.08  Starting Enrolment:- From  Issue of smart cards: -“  Identification of CSPs:-“  Training of CSPs:-“  Payment through cards: -“

Issues  EGS payments did not start in pilot.  13 banks have come forward to take up the project. Other banks not showing inclination, 3764 villages in the 6 phase I districts are still not tied up to banks. Allotment of villages to interested banks to be expedited by RBI.  8 banks yet to finalise TPs and BCs and issue appointment letters.  Adherence to standards.

Thank you