R. Subrahmanyam, I.A.S.R. Subrahmanyam, I.A.S.

Principal Secretary to the Government Principal Secretary to the Government

Rural Development DepartmentRural Development Department

Andhra PradeshAndhra Pradesh

R. Subrahmanyam, I.A.S.R. Subrahmanyam, I.A.S.

Principal Secretary to the Government Principal Secretary to the Government

Rural Development DepartmentRural Development Department

Andhra PradeshAndhra Pradesh

Presentation for “Enhancing delivery of G2P

payments”

Presentation for “Enhancing delivery of G2P

payments”

1

Why the project?

Direct electronic transfer of funds into bank a/c Payment only after biometric authentication Payment in the village Track movement of cash till the end beneficiary Capture delays, fix accountability and penalise Pay service charges to Banks for the service

Principles

Every village adopted by Bank or Post Office – BC Bank/Post Office appointed a Tech Service

Provider All beneficiaries’ biometrics captured in the

village Bank/Post Office account opened for each CSP appointed; equipped in each village Direct cash transfer into the bank accounts CSP paid after biometric authentication.

Process

5

Smart Card Payments -Process Flow

5

6

Biometric Technology

11001000…

Image

Template

Receipt Generation Slot

Receipt Generation Slot

Slot to capture thumb print

Slot to capture thumb print

Slot to insert Operator / Customer card

Slot to insert Operator / Customer card

Arrow Key for starting the device

Arrow Key for starting the device

F buttonF button

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AXIS BANK

BLC-00-00389-01MEKALA NARAYANAMMA DoB: 05-AUG-1965D/o. Guntala Lingaiah VILLAGE: DOMAMANDAL: ACHAMPET

BANK Model in 75% of GPs

Pilot in 6 mandals by 6 banks Service Area Approach tried in 6 districts without

success One District-One Bank Model in 16 districts 10 Banks, 8 TSPs, 8 BCs Local SHG Woman as CSP in every GP

Post Office Model: 2 full & 7 part districts: 25% of GPs AP Online only provides hardware & software services Post Office acts as Bank-BC-CSP Local SHG Woman as franchisee in GPs without BPO.

A. P. Model of EBT

Progress MCC-1100

DCC-324

MCC-1100

DCC-324

Banks-10

Post Office

Banks-10

Post Office

TSPs-8TSPs-8 BCs-8BCs-8

Wage seekers-109 Lakhs

Pensioners-72 Lakhs

Wage seekers-109 Lakhs

Pensioners-72 Lakhs

CSPs-20719BPMs-3480CSPs-20719BPMs-3480

FY 2012-13

FY 2012-13

Wages Amount-2163

CrTransactions-

4.5 Cr

Wages Amount-2163

CrTransactions-

4.5 Cr SSP

Amount-1371 CrTransactions-72

Lakhs

SSPAmount-1371 Cr

Transactions-72 Lakhs

Since Incepti

on

Since Incepti

on

WagesAmount-4255

CrTransactions-

10 Cr

WagesAmount-4255

CrTransactions-

10 CrSSP

Amount-3156 CrTransactions-72

Lakhs

SSPAmount-3156 CrTransactions-72

Lakhs

GOAP-RDD

MGNREGA Wages & Social Security Pensions

covered Enrolments started in 95% GPs Payments started in 80% GPs Over Rs.7,400 crores paid since 2007 During FY 2012-13, Rs.3,400 crores paid out till

October-12. System well-received by people:

40% paid in 7 days, 65% in 14 days.

ACHIEVEMENTS

End to end Transaction-based MIS. Electronic Fund Management System CSP- local SHG Woman Smart Card Wing headed by Additional Commissioner. EBT Coordinator at district level MIS: Disbursement delay analysis Compensation System for delayed payments Monthly Review Meetings at State, District & Mandal

levels. Server to Server transmission of epayorders &

disbursement data.

STRENGHS

Lack of faith in Financial Inclusion as profitable business Absence of FI-EBT Vertical: No full time officers Technology not inter-operable:

Bank tied to TSP-BC Customer tied to Bank-BC-CSP Change of Bank-TSP leads to reenrolment

Enrolment by Multiple Agencies No unique database Never-ending enrolments Carding delays

Absence of Market Research Services not rolled out & inadequate Business Models CSP paid poorly.

Bottlenecks & Constraints

Never-ending enrolment Banks not appointing exclusive officers Delays in Payments: 35% beyond 14 days. Cash Management: district to GP Power-cuts during daytime Areas with poor or no GPRS Connectivity

CHALLENGES

National Authority for Enrolment and Storage

of Unique Biometric Data – link with Aadhaar Deduplication of biometric data available Online authentication Service as a Public Utility. Solar powered Micro ATMs in all villages

connected through GPRS Inter-operable technology platform for Financial

Inclusion Multiple Agencies- Choice to Customer Multiple services & less Cash regime

WAY FORWARD FOR EBT

Banks to focus:

Develop business models Cash Management at local bank branches

Post office in CBS with 150,000 offices National Law for regulation of EBT

Punishments for delays – holding of cash Protection against profiling of customer/citizen

Way forward

THANK YOUTHANK YOU

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