TOTALFINANCIAL INCLUSION

THROUGH e-ROR PILOTED IN MANDWI, WEST TRIPURA

MANDWI BLOCK AT A GLANCE

Estd. on 30th October 1994 95% 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: 04th Sep.2012 to 2013-14 (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 12910

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 India 1

United Bank of India

1

Tripura Gramin Bank

4

Tripura State Co-op Bank

1

Bank wise dataSlNo

Name of Bank No of villages covered

No of families having bank

A/C

1 Tripura Gramin Bank & United Bank of India

19 9180

2 Tripura State Co-operative

Bank

4 2140

3 State Bank of India

(Through CSC)

1 1590_

Total 24 12910

POST INITIATIVE SCENARIO- Mandwi

All 12910 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 98457 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 2011-12 to 2012-13 (Rs. 191.83 lacs to 423.35 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