DIRECT BENEFIT TRANSFER THROUGH POST

Presentation by Vasumitra CPMG Assam & NE Circle BENEFITS OF USING

• Handling 6600 million articles as per year on an average • 1.3 Lakh Post offices in rural areas alone • All accounts, including MG-NREGS, are digitised. • Image as a people-friendly institution, and high degree of credibility • Time tested Accounting & Auditing system of the Department. • Excellent records management and inventory system. • Transparency in utilisation of funds • Encouraging small savings, and creating assets in marginal sections • Empowerment through inclusion in the financial institutional network, especially of women and vulnerable groups. • Payment at the doorstep of the customers / beneficiaries. • Financial inclusion of rural populace who are poor, un-banked, and vulnerable. Disbursement under Social Security Schemes

Indira Gandhi National Payment of National Old Disability wages under Age Pension MGNREGA Pension (IGNOAPS) (IGNDAPS)

Indira Gandhi Indira Gandhi Matritva National Widow Sahayog Pension Yojana (IGNWPS) (IGMSY) FINANCIAL INCLUSION: DBT • 1,30,000 Rural Post Offices are being equipped with Rural Information Communication Technology (RICT) devices to carry out transactions online • National electronic Fund Management System (NeFMS) is being implemented in all states for MGNREGA disbursements • All social sector payments through Post Offices are being routed through Public Finance Management System (PFMS) • Payment files for the entire country are being process centrally by boarding National Payments Corporation of India • Micro ATM kit comprising of one Tablet, Bluetooth Printer, Finger Print Reader are to be deployed in Post Offices, under Enabled Payment System (AEPS). DBT THROUGH INDIA POST: BENEFITS OF CORE BANKING Technical Ease under CBS Efficient Response Effective platform for for Successful and Reconciliation Crediting Failed due to centralised Accounts at transactions. Processing. Central Level

Any CBS Post Banking Facilities office withdrawal for Beneficiaries facility for end at RICT channels beneficiary.

Rural ICTIT Modernization Solution will introduce – Rural 1.3 ICT Lakh Solution mobile BOs for DBT

• Bridging gap between urban and rural India • Banking services • Utility bill payments for “un-banked” Retail Postal (water, Applications rural population Banking electricity,) • Availability of • Open for RICT in multiple channels addition of more Branch Post for ease of services on Office demand like transaction taxes, fees,

Phone top ups, Paying Social rail ticket Security bookings etc. Schemes Devices Rural ICT Solution Overview adedComputers Handheld TMdriain–RrlITSlto h Architecture The – Solution ICT Rural – Modernization IT hra Printer Thermal DImager 2D mrcr a Stripe Mag / Smartcard edradWriter and Reader Biometric Scanner INDIA POST PAYMENTS : THE VISION

Building the most accessible, affordable and trusted bank for the common man Prime Minister Mr. ’s statement on India’s “ 70th Post offices are linked with poor and marginalized people and the postman is the only representative of govt. who is linked with the feelings and affection of the common man Spearheading the financial By setting up this ‘’: inclusion agenda by removing • A network of will be set up across all the barriers for the unbanked villages in India and reducing the opportunity • People will get the benefits of Jan-Dhan cost for the underbanked account populace • MGNREGA funds for the common man can now be transferred into their accounts directly through AADHAR ” DoP-IPPB combine can radically improve delivery of DBT and be a game-changer for financial inclusion Over 1.36 lakh rural post offices to provide unparalleled reach and access for DBT • Aadhaar Payments Better reporting and Bridge (APB) as Better improved analytics for backbone and Access effective decision central operations of making IPPB Lower Improved • Analytics to track Risk Reporting fraud Existing infrastructure Exponential impact on Unique bouquet of of DoP, well-trained such as GDSs, strong inclusion cashless wallets, cash technical team in Unique management for small IPPB, and economies Cost Bouquet Effective of enterprises, doorstep of scale => cost Services services, etc. effective banking operations IPPB: TARGET CLIENTELE

Students Home makers

Rural heartlands Elderly

Influencers Blue collar IPPB & DOP: PRODUCTS & SERVICES IN 1ST PHASE At Launch – May Launch + 6 Launch + 12 2017 months months

• Provide basic banking services to unbanked and underbanked and enable them Objective to transact

Capabilities • Capabilities that can be developed within the launch framework and timelines

• Current account • Prepaidwallet app rd Products • • 3 party products – • Debit cards (RuPay) Individual/Group health insurance, • Prepaid account (for DBT) PLI & RPLI, MMMF, Loans* • Bill payments including • AEPS based transactions • International premium payment • G2C payments (PFMS) remittance – Inward Services • Domestic remittance • C2GPayments • Doorstep banking (NEFT/ RTGS / IMPS) • Merchant acquisition (DBT) • Cash management • Branch • ATM Channels • Assisted mode / Agent • SMS / Missed call banking • Digital (Mobile banking, • IVR (Basic non-financial Agent/ Merchant app) transactions) / Call centre * IPPB will aim to have a simple lending product on Day 1 (small ticket loans issued with minimal requirements) IPPB & DOP: PRODUCTS & SERVICES IN 2ND PHASE

At Launch – May Launch + 6 Launch + 12 2017 months months

• Expand the services and options to enable newer ways of transacting and give a Objective fillip to usage

Capabilities • Incremental capabilities which can be developed subsequently

• Debit cards (Visa/ MasterCard) Products • 3rd party products – Shop insurance, Life insurance

• Bill payments (BBPS • P2M payments (QR/ NFC) • Merchant acq. enablement, Bill • C2G payments (GST, PPF, (Physical, Online) Services presentment) NPS) • Int. remittance – • Remittance (UPI enablement)• Loyalty Outward • IVR – Full fledged Channels • Internet banking • Self-service kiosks IPPB & DOP: PRODUCTS & SERVICES IN 3RD PHASE

At Launch – May Launch + 6 Launch + 12 2017 months months

• Expand into newer areas to widen the overall set of offerings Objective

Capabilities • New capabilities which require maturity and evolution of the ecosystem

• Locker • 3rd party products – Loans, Mutual Funds etc. Products • Demat account • Prepaid wallet app (Coupons, offers, social • Financial advisory media based P2P payments)

• Coupons Services • Mass transit

Channels THANK YOU