TOTAL FINANCIAL INCLUSION THROUGH e-ROR PILOTED IN MANDWI, WEST TRIPURA

MANDWI BLOCK AT A GLANCE Estd. on 30 th October % Tribal Population Hilly terrain Scattered habitations Traditional agrarian economy Erstwhile hotbed of insurgency Presently under the TTAADC

How it started? State Government’s initiative “Universal Access to elementary Public Services” Targets: All habitations with road connectivity All habitations with electricity connection All habitations with drinking water 100% literacy 100% immunization coverage 100% institutional deliveries Digital and interlinked data base Total financial inclusion

Total Financial Inclusion Vision: Universal access to quality financial services Mission: Total Financial Inclusion Target Area: Mandwi RD Block of West Tripura District as pilot block & later extended to all blocks Period: 04 th Sep.2012 to (Mandwi) & till Sept’14 for other blocks Organizations involved: (i) District & Block Administration, West Tripura (ii) Banks particularly State Bank of India (iii) Common Services Centre, Agartala (iv) NIC, West Tripura district

Pre Initiative Scenario 4 Branches of UBI, TGB, TSCB for households with 6120 bank accounts Bank branches were located in Mandwi & Borakha or other main areas to cover 24 VCs & not in interior areas Payments of JSY, JSSK, NSAP, stipends in cash Delay and irregularities in transfer of NREGA, IAY payments Low credit disbursement in priority sectors particularly KCC etc.

OBJECTIVE (Financial Inclusion as a tool for socio economic development) One Family, at least one Account Basic Financial Services Transparent and Efficient transfer of Govt. benefits under different schemes To curb delay & to eliminate role of middlemen Boost to thrift, financial benefits and feeling of security Extension of credit in priority sector

Challenges faced Non availability of integrated database to track families & bank accounts with Banks Enormity of household survey Reluctance of Bankers Non-availability of branches in interior areas Lack of coordination amongst the stakeholders Other priorities TSCB was not on CBS platform

STRATEGY Planned and structured approach to address Planning at District and Block level Involvement of Banks CSC-SBI partnership CSC-Basix PPP approach Ultra Small branches to bridge the gaps Community mobilization Role of village committees

STRATEGY contd Record of Ordinary Residence Household Survey to update ROR eROR to act as the base document to identify uncovered families & sharing of information by BDO with Banks Opening of CBS accounts through major banks Village wise targets for Banks Financial literacy camps Extended the initiative in other blocks as well in 2014.

MODES Opening of Brick and Mortar Bank Branches- 1 SBI, 2 TGB Branchless Banking through CSCs/ Ultra Small Branches- 4 CSCs at Rajchantai, Borakha, lalit Bazaar & Manikung. 20 nos. in the district. Location of USBs & ATMs decided as per the GIS map supplied by Finance department 2 ATMs installed by S.B.I. to serve cluster of 8 villages- at Lalit bazaar & Mandwi block office complex Aadhaar No. seeding with Bank A/c No.Installation of Biometric ATMs Electronic Benefit Transfer Business Correspondents

ENABLERS Relaxed KYC guidelines prescribed by the RBI Basic Savings Bank Deposit Account- No frill accounts KCC and GCC Electronic platform for payment into Bank accounts for Govt. payments Linking it with Business Correspondents Active Block administration & village/ block level bodies

POST PROJECT SCENARIO Bank Branches State Bank of India1 United Bank of India 1 Tripura Gramin Bank 4 Tripura State Co-op Bank 1

Bank wise data Sl No Name of Bank No of villages covered No of families having bank A/C 1 Tripura Gramin Bank & United Bank of India Tripura State Co-operative Bank State Bank of India (Through CSC) _ Total

POST INITIATIVE SCENARIO- Mandwi All families have atleast one CBS Bank A/C Presently 100% electronic wage payments under MGNREGA through eFMS 100% Electronic transfer of benefits under IAY, JSY and JSSK 100% coverage of NSAP beneficiaries through banks KCC loans increased by……………

OUTCOMES The initiative was emulated in remaining 8 blocks as well All families (rural) have at least 1 CBS bank account 20 nos. of Ultra small branches are functioning Increase in credit by 220% in Agri & allied sector between to (Rs lacs to lacs) source “Annual credit plan’. Suitable platform to achieve objectives of PMJDY by Nov’14.

Looking forward… 100% DBT may be started for various schemes Revamped structure by banks to carry out branchless operations under competitive and comparative advantage Deepening of financial services coupled with financial awareness Impetus from Pradhan Mantri Jan Dhan Yojana

“Those whom you push down will chain you down Those whom you leave behind will pull you behind The more you envelope them under darkness of ignorance The more distant will your own welfare be!” (Literal translation from a poem of Rabindranath Tagore “Disgraced” in Gitanjali)

e- RoR in Mandwi

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Key role of RoR

Electronic Benefit Transfer

Five important features :  1. Under the scheme, account holders will be provided zero-balance bank account with RuPay debit card, in addition to accidental insurance cover of Rs 1 lakh.  2. Those who open accounts by January 26, 2015 over and above the Rs1 lakh accident, they will be given life insurance cover of Rs 30,000.  3. Six months of opening of the bank account, holders can avail Rs 5,000 loan from the bank.  4. With the introduction of new technology introduced by National Payments Corporation of India (NPCI), a person can transfer funds, check balance through a normal phone which was earlier limited only to smart phones so far.  5. Mobile banking for the poor would be available through National Unified USSD Platform (NUUP) for which all banks and mobile companies have come together. PM Jan Dhan Yojna