22 nd January, A.P. SMART CARD PROJECT 22 nd January Department of Rural Development overnment of Andhra Pradesh G overnment of Andhra Pradesh Welcome to the Rajasthan Team

22 nd January, A.P. SMART CARD PROJECT OUTLINE OF PRESENTATION  Pilot - Features  Key- processes  Roles  Pilot - Coverage  Scaling up strategy  Status of scaling up

22 nd January, A.P. SMART CARD PROJECT 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.  Steering Committee with RBI & Department of RD.  Infrastructure cost shared by the Government & the Banks.  GOAP pays 2% service charges.  GP level disbursement.  CSP is the Village Organisation.

22 nd January, A.P. SMART CARD PROJECT 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..

22 nd January, A.P. SMART CARD PROJECT Key- processes 2. Preparation and issue of 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..

22 nd January, A.P. SMART CARD PROJECT 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.

22 nd January, A.P. SMART CARD PROJECT 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.

22 nd January, A.P. SMART CARD PROJECT Key- processes 5. Disbursements  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.

22 nd January, A.P. SMART CARD PROJECT Key- processes 6. Data uploading  CSP / BC uploads data of disbursements daily.  MIS report an progress of disbursement is submitted to Government.

22 nd January, A.P. SMART CARD PROJECT 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

22 nd January, A.P. SMART CARD PROJECT Role of Banks  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

22 nd January, A.P. SMART CARD PROJECT Pilot coverage WarangalKarimnagarTotal Villages covered Beneficiaries covered 24,51729,55354,070 Payments made ( Rs. In lakhs)

22 nd January, A.P. SMART CARD PROJECT Technology (M/s Fino) … Image Template Code Receipt Generation Slot Slot to capture thumb print Slot to insert Operator / Customer card Arrow Key for starting the device F button

22 nd January, A.P. SMART CARD PROJECT 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)

22 nd January, A.P. SMART CARD PROJECT Beneficiaries with smartcard

22 nd January, A.P. SMART CARD PROJECT Biometric verification

22 nd January, A.P. SMART CARD PROJECT Issuing of receipt

22 nd January, A.P. SMART CARD PROJECT Disbursement through smartcard

22 nd January, A.P. SMART CARD PROJECT Warangal - SSP Coverage MandalBank pensio ners Enroll cards issued Disb, throug h card Manu ally disb. Total disb. No. Amount disb. lakhs Payin g since DharmasagarSBI May ’07 Raghunathap ally Axis May ’07 Hanumakond a UBI May ’07 Station Ghanapur APG VB June ;07 GheeskondaAB June,07 RaiparthySBH June ‘07 Total

22 nd January, A.P. SMART CARD PROJECT Warangal - NREGS coverage MandalBank Total benefici aries Enroll cards issued Disb, throug h card Total disb. No. Amou nt disb. Lakhs DharmasagarSBI RaghunathapallyAxis HanumakondaUBI Station Ghanapur APGVB GheeskondaAB RaiparthySBH Total

22 nd January, A.P. SMART CARD PROJECT Pilot districts - Karimnagar.  (2) mandals in Karimnagar district with a private agency M/s Financial Information Network and Operations Ltd., (FINO). Thimmapur Sirsilla  Started in 5 GPs on 1st July with pension payment.  Wages under NREGS paid in the entire Thimmapuram mandal on 13th Aug  After the pilot, the bank model will be adopted.

22 nd January, A.P. SMART CARD PROJECT Covered in 2 mandals ( Thimmapur and Sirsilla) Scheme Total Benf. Enrolled Card Issued Total No. of benf. Disbursed Amount Disbursed (Rs. In lakhs) SSP NREGS Total Karimnagar

22 nd January, A.P. SMART CARD PROJECT 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.

22 nd January, A.P. SMART CARD PROJECT Thank you