Interview with B. Satyanarayana, AGM, State Bank of India, Hyderabad
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Summary: The Identity project emerged as a result of our dissatisfaction at the nature of the debate that was emerging on the area of digital governance in India.
Over the past three years we have conducted numerous field visits in seven Indian states.These visits include numerous video-conversations, some short and others very long, with a diverse number of those who were involved with this entire process of participating in the emergence of a digital ecosystem of governance. These are interviews with people being enrolled into the Aadhaar programme, with district-level Panchayat and other officials, with numerous State government bureaucrats, with private enrollment representatives, representatives of various governmental services, with operators and other members of this digital workforce. Conversations are often long, spontaneous and deliberately unstructured: and the focus is mainly on a vérité style using amateur video.
Some key issues that we shortlisted for detailed inquiry were issues of migrants, both domestic and across international borders, homelessness in cities, and the financially excluded. Each of these areas was discussed in considerable detail at major public consultations held in Delhi, Kolkata, Hyderabad and Bangalore, in partnership with the CSDS, the Mahanirban Calcutta Research Group, and the Urban Research and Policy Programme Initiative of the National Institute of Advanced Studies, Bangalore. All videos of all presentations made at these events are also available here.
CSCS also has an extensive text archives of material on the field as a whole, available on
http://eprints.cscsarchives.org.
Clip Summary: B.Satyanarayana, SBI, AGM, Hyderabad (Video in English)
Two elaborate videos about SBIs financial inclusion initiatives. The video explains in elaborate details about the bank’s FI (Business correspondent) initiatives. Seventy percent of the BCs are individuals while the remaining 30% are corporate entities, who are also technology partners of SBI. FI business as such is very small and they are only undertaking the business due to government requirements. SBI has completed the establishment of the BCs far before the mandated time. It includes the details about the villages identified to various companies for complying with the SBI mandate. Some of these companies are also enrolment agenices for the SBI. SBI has 17 FIC centres in order to complete FI. He explains the role of the BCs in expanding financial inclusion.
INTERVIEWER: We tried to Mr.Bhushan in Kurnool.
Speaker: Mr.Shashibhushan? He is the FIC manager. FIC stands for Financial Inclusion Centre.
We have been allotted 1381 villages in the state of Andhra Pradesh to be covered, originally before the 31st March 2011. The government later extended it one more year i.e. 31st March 2012.
And for this in Andhra Pradesh, an exclusive department has been formed. Headed by a senior person, the Deputy General Manager. Under him I am the Assistant General Manager. And with this there are two officers and a third officer in Vijaywada doing the same thing.
Three chief managers and one IT person from our IT department Who takes care of opening of the accounts and giving code numbers to the BCs. He looks after all the issues related to IT. So against a target of 400 up to 31st March 2011, we have done 577.
INTERVIEWER: What are 400?
We have to cover 400 villages out of 1381. We have to do 400 but we have crossed it and we stood first in the entire country. Initially we went by selection of individual BC's. Our people go into the village they will gave a paper publication and an interview will be conducted.
The interview panel consists of regional manager, the chief manager and also some other senior officials. These 3-4 people will conduct the interview and they will select the people from that village. Not any outsiders.
He will be given our kiosk technology. So, during the initial period our focus was entirely on sensitizing the regional managers and selecting the individual BCs. BCs are Business Correspondents. He is a person and not an entity.
Ours was the first in the entire country. After some time, for achieving the remaining targets, we have done approximately 577, the remaining 700 odd, the efforts made by our people in selecting candidates in the deepest corners of the villages was very difficult for us.
So we thought instead of totally going by this independent CSP model, why can’t we think about corporate entities? During that process, even with the 577 also we have gone to this entity called the ZMF- Zero Mass Foundation. Their technology is called ALW- A Little World.
Basically, these people are doing in six districts NREGA payments and SSP payments (pensions and MGNREGS payments). We have given in those villages these 6 districts where the financial inclusion villages have been allotted to us, around 100 villages we have given to ZMF. It is a cell based technology. It is their own technology called ALW. Our bank has a stake in the company, around 80-90 crores that it has invested in ZMF.
Ultimately what we realise that our people in spite of their best efforts they could not get independent BC's for the remaining 800 villages. Moreover what we thought is that we wanted to distribute this among different channels.
So that if there are any unforeseen situations the total system cannot collapse. So we wanted 70% to be under the BC model and the remaining we wanted to entrust it to these corporate entities.
These corporate entities, some of the corporate entities are at the national level. Our corporate centre calls for them and after due verification of their technology, financial capabilities, experience, history etc. After this they send them to us and tell us that we can make use of their services.
Similarly there are circle level BC's. Some organisations, NGO's who have some experience, infrastructure and manpower etc.. Whoever is interested they will be interviewed and verified. We also send their technical products to our corporate head quarters to check it for compatibility to the bank. When they confirm then we entrust some of the work to them. During this process we have 5 business correspondents who have been entrusted with 454 BC points.
For example, Vennela Welfare Association is a regional BC, it under the Hyderabad level. On an experimental basis we have given them 22 BCs. Mainstream Solutions and Education, it is called GeoSansaar.
This GeoSansaar in addition to the Total Financial Inclusion, these people are also Urban Financial Inclusion centres also. For example, In Hyderabad we have given them 33 (BC) points. Our intention is where there are more people from the labour communities, where people send amounts to other parts of the states. Where people do not find the time to come and deposit or remit money in the bank. And also in order to decongest the branches where non-home transactions are more. For every non-home transaction a Rs.25 per transaction will be collected by our bank. And in those areas where the rush is more the core bank will be put to a lot of inconvenience.
So nearby points will ask them to open CSP outlets. So non-home transactions whoever remits the amounts they will go there. They get Rs.12.50 they get and Rs.12.50 will come to the bank.
Out intention was that the rush at the local branch will decrease and permanent customers who have accounts etc. can be better facilitated by less rush. These people i.e. CSP's we told them that kiosks have provided in not only urban areas but in semi-urban and rural areas. This is called GeoSansaar. We have given 42 villages to them.
After that 4G Identity Solutions. This is another point of relevance to you also.
4G Identity Solutions is our national level enrolment agencies (EA) for Adhaar. Our state has given two enrollment agencies. The first is 4G Identity solutions and second one is CSS Technergy Limited. These two are the enrollment agencies appointed by our corporate centre in Andhra Pradesh.
INTERVIEWER: So is the State Bank national enrollment done by these people for Adhaar?
Speaker: Yes, for Adhaar.They might have been selected as enrollment agencies by other banks in other states also. For us they are doing it here. We had initially advised them to do this Adhaar activities in the Financial Inclusion villages because the government has taken a lot of time for demarcating the areas to different registrars of the state.
And incidentally you are aware that the State Bank of India is number one in Adhaar compared to other registrars. Registrars’ means other than the other government registrars like the Food and Civil Supplies. They might be number one because their area is located in metro centres or where things can happen fast.
These people are inside villages but we are number one in doing this in semi-urban and rural areas. Recently after the initiation of the Adhaar and completion of one year we were called all the way to Delhi to be felicitated. These two, 4G Identities and CSS Tech and our officially from our corporate centre were called to Delhi and they were felicitated as well.
So incidentally 4G Identities was an Adhaar enrollment agency. We have asked them to become a national BC. So that wherever they have done all this Adhaar enrollments it will become easy for them to open the accounts. This is the ultimate purpose of the Financial Inclusion programme. So during that process there was a delay in getting their BC code because of certain formalities but they eventually got it. It was because a Memorandum of Association (MoU) to carry out the BC activity was not mentioned.
For that they had to conduct a general body meeting and they had to include that particular clause. They had to deposit Rs.10 lakh or Rs.50,000 per CSP. There are some norms but ultimately they got their number and we allotted 189 points to them.
The other is Zero Mass. For Zero Mass is where we are the stake holders. Also, with Zero Mass they conduct our EWT activity i.e. Electronic Welfare Transfer (SSP and NEREGA payments). We have given 132 points to them.
Finally, Oxigen, which is Sahyog Mirco Finance Private Limited. We have given them 69 villages to them. During this process we wanted to complete this entire operationalization of the CSPs before 30th November. Just two days ago the regional director of the Reserve Bank of India had called for the heads of the Banks and pressed for the need for the early completion of this total financial inclusion because mere opening of the CSP's doesn't serve the purpose.
The accounts should be opened. An EBT (Electronic Benefit Transfer) account is different and an account under Total Financial Inclusion is different. EBT is only payment.
The question of depositing or sending the amount doesn't arise. Also, we are giving the facility of overdraft from Rs.1,000-25,000 depending upon the nature of the transactions conducted in the accounts. And also recently our corporate centre has issued instructions that automatically all the Financial Inclusion Villages, where ever we have our CSP points they will by default become Business Facilitators.
The concept is like this. The Total Financial Inclusion Centre, if it an individual BC it is ok. Otherwise if it is a corporate entity it is called CSP point. That person will be linked to the nearest branch of the State Bank of India.
SMPC or district level credit committees decide which place has to be allotted to which bank. A unique feature of Total Financial Inclusion at the State Bank of India AP is 'Bank on Bike'. Now it has bank on wheels.
Which is called the link-branch where he has to open two accounts. One is a settlement account and the other is the commission account. The bank manager is called Link Bank manager.
And we have got a very specific system called the FIC (Financial Inclusion Centre). That is headed by the senior scale 2 officer or scale 3 officer whose job is hand hold all these CSPs and he will supervise some 40-50 points like this. So he has to visit these places where the CSPs are located.
He conducts an awareness campaign, he will have a discussion with the local people like the Sarpanch etc. He will conduct the meetings. He will explain the products along with the CSP's.
So the FIC manager and link branch manager play a very important role. These two are under the control of a senior scale 4 officer who is placed at the Regional Business Office (RBO). For example Kurnool has an RBO and under the RBO Mr.Shashibushan is in the branch upstairs.
He will also be given a laptop, printer and whatever he needs. He will authorise the opening of the accounts the moment the CSP approaches the accounts.
He plays a very vital role there. And if there are any technical problems our people from the IT Department will take it up with our corporate centre. Suppose they have some connectivity issues or some feeding or some numbers are wrong etc.
And this Chief Manager-Rural is the person in the Regional Business Office who is the controlling point for all these persons. Ultimately the Rural Chief Manager works under the Regional Manager. Regional Manager is the head of a particular district.
In some other areas one or two districts come under the Regional Managers. We have 17 centres based on this concept in AP. They exclusively look after the Total Financial Inclusion.
They visit, handhold and if you see that board, each centre is on the board. Whatever villages have been allotted to that centre, their names are there.
INTERVIEWER: How many districts are you given in A.P for Financial Inclusion by SBI?
Speaker: It is not district wise. Everywhere we will be there and along with are other banks will be given some other points. Because in certain areas they may be predominant players there so there is no need in giving us BC points. Like that.
Even our CGM and GM attend that. People are now talking about below 2000 or below 1000 or so. But for all these things the economic viability of the CSP is very important. Unless there is minimum amount of income generated to him he will not have any interest. At times we may not also get good people at centres where we ask them to cover the existing BC by the way of a bike.
Suppose, if he has a two wheeler we will carry a laptop along with him and a specific time of two hours every day or once in two days he will visit and open accounts and he will conduct the transactions.
INTERVIEWER: So of the main corporate partners you have the largest is 4G and CSS is it?
Speaker: CSS we have not given anything to them. I haven’t said that we have allotted anything to CSS. We have made allotments to 4G. Their code number has just come a week ago. They are already in the field selecting the people.
INTERVIEWER: They are you enrollment agents and now are your enrollers.
Speaker: They are doing this Adhaar enrollments continuously and the deadline given by the state government is the 31st March 2012.
Another is Bank on Wheels. Now 4G is doing it this way. It will cover a minimum of 6 villages in a week. It will cover a minimum of 2 villages in a day and spend 2 hours. The car will have the entire infrastructure inside it and they will visit and attend to the nearby villages also.
Not only this, the CSP points, in the next year also, the nearby contiguous villages where the population of the village is below 2000, they will cover them also.
Another important point I was telling: up to Rs.50,000 crop loan they become by default business facilitators, I told you just now.
They will conduct a meeting with the FIC managers along with the link branch manager
and, whoever is eligible, their crop loan application will be sourced though this BC and sent to the link branch.
During that process these people will get the commission for sourcing the business.
So their income level goes up.
And we are also conducting the Chalo Gaon Campaign. It means that if a BC opens 25 accounts in that village he will be given a Rs.2000 incentive.
If he opens 50 savings bank accounts - all these are no frill accounts with zero balance - he gets Rs.3000
If he opens 100 accounts he will be given Rs.4000.
There is another campaign going on called the Swabhiman Laksha 300.
In this scheme, before 31st December all CSP points where ever we have opened they have to open minimum 300 savings bank accounts.
Minimum. No minimum balance, zero.
INTERVIEWER: Apart from the fact that SBI is already doing UID related work though enrollment agencies, do you see any other connections between the no-frill accounts and the UID number?
Speaker: Suppose you take the 4G ID, 189 points we have given them. Already they have taken the enrollment data by the way of the State application. It contains their KYR Plus data also.
That itself is enough for opening their accounts with them.
INTERVIEWER: There happens to be a synergy.
Supposing SBI was not doing UID work and was not an enroller. Think of another bank, the banking sector in India (as a whole). What is it seeing in the UID? If it is not an enroller is there any other benefit the bank will see in something like the UID coming into force?
Is there any connection between your Financial Inclusion plan which existed before the UID and was different from what is now expected, and this new demand?
Suppose... we have opened almost 577 points in the entire state.
In most of these places we are not doing the work of a Registrar. Because it is ultimately the government that has decided to do Aadhaar work only in some areas.
It has been distributed among many people. There also we open accounts without the Adhaar cards.
INTERVIEWER: Is there a connection between Aadhaar? Are you seeing any benefits of Aadhaar for the banking sector?
INTERVIEWER 2: To put it another way, I was also asking a similar question. One usage of the UID number that the UIDAI is putting out is the use of the number in the BC transaction process, where the Aadhaar number will be used as an identification number.
Speaker: What is an Aadhaar ultimately? What will the Aadhaar do? It’s a proof of identity and proof of address.
The Introducer
These are all the two vital things we take.
Even for opening a savings bank account in a village where we have not done Aadhaar enrollment - where nobody has entered because still there is a lot of time left to complete the process - even there, with these this (same) two we will open the account.
There a word called liberalised KVs. Suppose anyone of us goes to a bank branch for the opening of an account, what will they ask? They will ask for 3 things. One is two photographs, POI (Proof of Identity) and POA ( Proof of Address).
Suppose somebody is there is the village who does not have these two things. Still the CSP operators signs. Because he is a man from that place, he knows X
He knows X, knows that he is from that village his name is Subbarao, or whatever it is
He can open his account without insisting for the POI and POA.
That is what they call the Introducer
No introduction. The CSP himself identifies him and his signature is enough to open the account.
Introduction part is different: even with Introduction, POI and POA is a must.
But, in this Total Financial Inclusion, the CSP has been given the powers to open an account where there is no voters’ card, no ration card.
INTERVIEWER: But this again is part of the Financial Inclusion plan? Not necessarily Aadhaar related?
Speaker: It is not Aadhaar related.
INTERVIEWER: One the Aadhaar number is issues to everybody to a large number of people. Will you existing Business Correspondents technology process that is in place - will that change when Aadhaar comes in? Are you seeing some kind of overlap between the existing process that you have now and when Aadhaar is introduced?
Speaker: When Adhaar is there the opening of the accounts will become very easy.
INTERVIEWER: What about transactions? BC Transactions?
Speaker: What will a Business Correspondent do? Actually the main idea in the Total Financial Inclusion is only unbanked areas, is the financially excluded, and we want them to open their accounts and also give them some sort of financial assistance. So that over a period of time they can enjoy the benefits given by the banking sector without losing much time.
For example I have visited local parts of the entire state by inspecting these points wherever we work. There are self-help groups. In all these Total Financial Inclusion villages there are a good number of self help groups. But they have to go more than 15-20 kms to avail loans or to pay the installments etc. All these people have been asked to open their accounts here so that straight away they can deposit it here itself and it can be transferred to the loan account. Lot of time will be saved.
INTERVIEWER: This is more related to actually to ask you if necessary to speculate a bit. You say that it should be profitable to the CSP for opening of these accounts, to continue this business.
The thing is that he is investing some amount there for purchase of laptop, or biometric instruments, furniture etc and even Internet connections. People will always want to have some income. Unless there is a minimum income levels they cannot be....
At one point of time they say that it is not profitable for me not to maintain enough balance in their settlement account when they conduct the transaction. I think you know about this? Suppose if I go to him and open and account and I deposit Rs.100 at the same time his transaction account will be debited and my account will be credited.
Suppose if I draw Rs.1,000 from you a CSP point, my account will be debited and your settlement account will be credited. For that he has to maintain a sufficient balance in that account also.
It also carries some interest. So there should be some break even points and it should be lucrative for him. We cannot give him thousands and thousands of rupees income. But he should not incur any loss.
The major problem that we are facing is almost in 500 points connectivity is the major problem. Which we have taken up with the government also in a meeting with the principal secretary. Because from the morning to evening if there is no connectivity what is the fun in...
The very purpose of total financial inclusion is first we should make sure that the accounts are opened. Whatever it is having an account is one’s own village will have its own impact.
So for that you need not spend anything except for one or two photographs. Nothing more than that. So we are advising our people to first open at least one account for one household.
That is the minimum. If someone is there beyond 18 years of age in the same house or the name of his folks because the bank is giving maintenance charge to the CSV points every month.
For example, Rs.50 paisa per account, something like that. So his income level will go and he will find interest in doing that business and ultimately the purpose of Financial Inclusion can be made out.
Another thing is that the RBI has made one point crystal clear. Out of the 5% invariable, the bank has to open branches. For example the 800 that we are supposed to open out of which 5% of 40 branches we have to open brick and mortar branches. These are some of the guidelines.
INTERVIEWER: What it is the SPA expect. What is the growth we expect by going thought his financial inclusion plan? Growth in business?
Initially all very poor people. All these are unbanked villages are with very poor people. Below the poverty line. Even Rs.1 or Rs.10. There is a restriction in the amount of transactions also. You cannot conduct more than Rs.10,000 in total. Underprivileged. That is the word.
At this juncture we are not seeing any, what you said, how much growth we will see. Our intention is not that.
INTERVIEWER: Leave the intention aside.
I will tell you like this. In the case of Aadhaar there is a greater objective for the government. Suppose in the AP state the Chief Ministers intention is to make ensure that the entire state is covered with before the 31 March 2012, they are going to save nearly Rs.1000 crores. Just by getting everybody enrolled in Aadhaar.
Our intention is that now, one should have a bank account first. It is a no-frill account. What income does a bank expect from this?
Sir for youe point. 20 % of the link branch business should be on a confirmed basis.
INTERVIEWER: Are you hoping? Of=r will this happen?
No, not hoping. This particular year, our financial year starts from April to March. So what we have told while giving the budgets to the branches link branches, semi-urban or rural banks, is that we have made it mandatory that 20% of the target given to you should come from this BCs model, this BFs model. Actually these people may not have enough money to deposit it in the bank.
If that is the case. The why should we make no-frill accounts or zero balance accounts? So whatever their financial requirements are there, if they are met at their doorstep their level of income goes up. Their standard of living goes up.
During that process lot of economic activity will be generated. They will try to save some money. Not only in deposits and advances. In mutual funds, life insurance products all these things are a part of this. So it might not happen immediately. How many of us were using ATM cards 4-5 years ago? I myself didn't have an ATM card. Over a period of time, once you should be made.... I did not know how to use an ATM card. Now it has become a part of life almost. We have almost forgotten carrying money with us wherever we go. Within the state or outside. We just carry the credit card or ATM card.
Over a period of time people who were made to use it and without having... even an Rs.100 I may not carry but I have a credit or debit card with me. Like that first we should gain the confidence of the people. We should make them feel that it (this service) is nothing less than a bank branch.
For that a lot of awareness has to be created. And FLC's or Financial Literacy Centres is another concept where the RBI is also giving a lot of importance. Financial literacy campaign, wherever there are lead districts or lead banks are there they have to set up this centre.
They have to educate the people. They have to make them realise the importance of this CSP model or BF model.
INTERVIEWER: You have these link branches isn't it. Or these rural branches In AP, usually, as a generalization what is the business that you generate per rural branch in a year on an average? What is the volume or turnover that you have?
Speaker: In a rural branch it all depends on the area, the population and it all depends upon the crops grown. Kurnool, Anantapur are totally drought prone. It is dependent on the rains. If you go to Godavari districts it will be totally different.
INTERVIEWER: Say for Kurnool. How much business does a rural branch do?
Speaker: Around 8-10 crores in a year.
INTERVIEWER: And what about Krishna, Godavari?
Speaker: Its about the same.
INTERVIEWER: You have some BCs. You have appointed a number of BCs. Are they BCs only for your back or can they become BC for any other bank.
Speaker: They cannot.
And all these 577 villages that you have.
About 993 villages. Out of that 993 93 branches have been opened and 900 BCs were opened. And the remaining will be completed by the end of November.
What is the deadline?
31st March. The faster we finish it we can then concentrate on opening of the accounts. Operationalization of the BC's. Stabilization of the things and awareness campaigns. Just mere opening if the BCs doesn't serve the purpose. The real idea behind that has to be achieved.
INTERVIEWER: So whatever business these BCs have brought in till now that’s all new business that has not gone to any bank till now?
Speaker: Previously they used to go to towns. Leaving work and wasting their time. Now the main purpose is the bank opens at 6 am or 7 am to 7pm in the evening.
But they are the persons who stay in the village, if he has a medical shop or a kirana shop this can be his additional income. He cannot go out. The person who is going to the field if he wants an amount before 8am he can take it.
As of now the banks open at 10:30 and he has to come from the village and again he has to go back. Time gets wasted. That should be done. Even while returning from his field he can take the amount. That's the main purpose of the BC's. Once he is allotted the system in the banking he can automatically get it.
Those who have some other activity and are not totally dependent on this... He should be a kirana merchant or he should be doing some other business. He should be a local there for 5-6 years.
The Introducer
He should have good respect in the village so that... otherwise by simply giving an uneducated youth there - that also might be given - he might not immediately generate the business. Cash management might become a difficult point.
INTERVIEWER: Are your rural financial inclusion branch accounts, are they also the accounts where the NREGA payments of the pension payments and other kind of payments are given?
Speaker: Wherever we have given the points to Zero Mass there they are doing this.
INTERVIEWER: When you don't have that, you might be at a slight disadvantage. Maybe they will not be used, your accounts? If it is not receiving any amount through the government pensions or...
Speaker: You see the opening of the accounts at all these villages is not for the sake of government payments or government receipts.
We wanted to give them a total package from the bank whatever they are eligible for.
The Introducer
Say some over draft amount. Rs.1,000 to Rs 25,000 without any security giving it to a local villager - just you see!
Suppose he has half an acre or one acre of land giving him a crop loan.
Suppose his boy is going for some higher studies giving him an educational loan.
Or giving a two-wheeler loan to him. There are so many things.
Whatever we are doing in the urban metro areas and semi-urban areas the same thing will be extended to them.
INTERVIEWER: The government related welfare payments are not...
Speaker: Over a period of time the government may say that all these things will pass though accounts only then it will be of great help to them.
INTERVIEWER: The MFI infrastructure that is already there in the state is famous but also notorious because of the extremely high rates of interests. What is the established banking structures relation to the MFI.
Speaker: MFI and things our department does not handle. We deal with only the Aadhaar, eligibility payments and Total Financial Inclusion.
INTERVIEWER: But one of your partners, Oxigen is actually an MFI?
Speaker: No, it is only a BC.
INTERVIEWER: But it is promoted by an MFI is it?
Speaker: We do not know.
INTERVIEWER: How many of your BCs are MFIs?
Speaker: These are only 5 BCs, One Venella is a local BC, and Mainstream Solutions is Geo Sansaar that is also a national BC. 4g and CSS are newcomers because of the Aadhaar, they are in touch with us. This Oxigen is doing it in some other states. We have not financed any of their MFI activity. We have taken them only as national BCs.
INTERVIEWER: So the CSVs, the point of sale people, when they are being receuited, there some kid of social criteria that is also being implemented?
Speaker: Social criteria means that they should not be defaulters. We will also advice our concerned branches to take police enquiry report also.
Earlier, they had to make a deposit or Rs.1 lakh. It was later reduced to Rs.50,000. Now it’s been further reduced to Rs.25,000. It's a deposit in his own name. In the link branch. At least to assess that they are capable of handing cash transactions, which is very important.
He is Mr.Vinod Reddy, Chief Manager, from APGBB- Andhra Pradesh Grameena Vikas Bank. They are also doing this financial inclusion and we are their sponsor banks.
INTERVIEWER: Sir just one question about the technology again. Mr.Anil had told us that fingerprints are being taken during enrollment and are then used for subsequent authentication in BC transaction. If a user goes to do any transaction with the BC his fingerprints is initially taken during enrollment and then used as authentication, right? Just want to understand that better. When you take a fingerprint during enrollment, is it stored in some central repository which is there. Is it similar to what Aadhaar is doing?
Speaker: Yes. Bio-metrics are taken.
Speaker 2: Normally it is 6 fingers.
Speaker: All care is taken to make cash transactions fool proof.
INTERVIEWER: Is the CSP point online or...
Speaker: Online, the moment you credit it will show link branch account. Their transaction will be approved.
INTERVIEWER: It is through mobile?
Speaker: No, our kiosk technology will be there.
INTERVIEWER: So this is quite unlike the FINO model or the ZMF model.
Speaker: Yes.
INTERVIEWER: So even if you are giving it to ZMF you will insist on the whole kiosk infrastructure?
Speaker: No. Suppose if somebody is there they will have their own technology. But as far as our individual BCs are concerned it will be like this only.
INTERVIEWER: Even if ZMF is doing it for some other agency. If they are opening them though cell phones and GPRS.
Speaker: Their server is also integrated with our main server.
This is not a 24 hrs service that the BCs provide?
Online is 24 hours.
Speaker2: But there are usually working hours.
Speaker3: In addition we are also providing the bank on vehicle.
INTERVIEWER: Everything is 24 hours.
Speaker: Yes.
INTERVIEWER: They have office hours. What is someone wants with draw money at 10pm?
Speaker: The man is a local man. But in general we specify that it is from 8am-8pm. If someone goes at 9-10pm and he wants to make a deposit. He will make some commission. Why should he refuse?
Speaker 2: For transactions that happen after 8pm it will be actioned the next day.
INTERVIEWER: So where is this repository of biometric information? Where is the central repository?
Speaker: In case of SBI it is in the banks servers. In the case of other banks they have their own servers.
INTERVIEWER: As it stands people who don't have Aadhaar. Do you have de-duplication structure that is comparable to Aadhaar's?
Speaker: I will read this 'Our bank is one of the registers under Aadhaar. We have inducted one of our enrollment agencies for the 4G Identity Solutions under Aadhaar as our business correspondent. The financial Inclusion villages where the aforementioned agency has undertaken enrollment have also been mapped so that Aadhaar could be leveraged and KYR Plus data obtained by them could help in opening of the bank accounts of the residents concerned for the purpose of Total Financial Inclusion is accomplished in totality.'
INTERVIEWER: In AP, the Food and Civil Supplies department has biometric data. When they are going in for Aadhaar they are actually replacing their data with Aadhaar biometric data.
Speaker: Actually in state government all the departments.. I have attended several meetings conducted by the state government where they have summarized the requirements of the different departments and finalised a structure where the form can be used during Adhaar enrollment where it will useful for say the transport department, civil supplies departments banks etc. They have given a form.
INTERVIEWER: Are you following the same form?
Speaker: We have to.
INTERVIEWER: Again for Aadhaar, it was not self evident that every single registrar in a single state has to have the same KVR Plus.
Speaker: Whatever the AP Government says we are going by that.
INTERVIEWER: And your data you are sharing with the government?
Speaker: There are some instructions regarding that. We have to do it as per our bank norms. Let my DGM come and we can discuss that with you.
INTERVIEWER: You said that about FLCs. I am interested in knowing a little more about what is it that you intend to do with FLCs.
Speaker: Financial Literacy Centres.
INTERVIEWER: Who has designed the programme?
Under the Reserve Bank of India guidelines and NARBAD structure.
INTERVIEWER: Are you designing the Financial Literacy.
Speaker: I will read out some lines. 'To provide financial counselling services through face to face interaction as well as though available media like email, fax, mobile etc. As per the convenience of the interested persons, including educational responsible borrowing, proactive and early savings and offering debit counselling to individuals who are indebted to formal and informal financial centre. To educate the people in the rural and urban areas with regard to various financial products and services available at financial centres. To make the people aware of the advantages of being connected with the formal financial centre and to formulate debut restructuring plans for borrowers in distress and recommend the same to the formal financial institutions including cooperatives for consideration.......
INTERVIEWER: Has there been setting up of any of these centres?
Speaker: Yes, we have in Medak.
INTERVIEWER: Can you give us some statistics as to how much these BC have generated for you?
Speaker: So far we have opened 1,41,000 accounts.
Speaker: There is nothing in it.
INTERVIEWER: How much does a BC earn on an average? A commission?
Speaker: They get Rs.2000.There is no assured amount. If the collection goes up. They might get Rs.4000. There is a limit beyond which the bank cannot give. We have allowed it up to 30 September. It’s up to June 2013. Unless you encourage them, who will come forward? We are the pioneers. So many other states are following or concept of FIC's. Financial Inclusion Centres. That is very important. There should be someone who should take care, monitor, advice, approve and conduct awareness campaign.
INTERVIEWER: Do you coordinate with the Rural Development Department of the State Government?
Speaker: No. There is Planning Department and the Reserve Bank is closely monitoring. And two SLBC's-State Level Bankers committees. They were given a deadline to complete the allotted villages before 31st December. Actual operationalization is very important. That will happen before 30th November. After that we will concentrate on opening of accounts. People need some time to get used to it. Just like the ATM card has become a part of our routine.
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