ITC Limited

Rural Networks

Committee on Promoting Financial Inclusion

Mumbai, 7th Aug 2010
1
 Contents

1. The Context of Rural Initiatives

2. Specific ITC Initiatives

3. Common Themes across Initiatives

4. ITC’s Plans in Financial Inclusion

2
 Broad Objectives

Scale in Outreach

Effectiveness in Solution Delivery

Low Cost Operations

3
 Rural Characteristics

 Small Transaction Sizes

 Seasonal Variability in transaction volume
 Geographic dispersion
 Low density

Need complete solutions

Need personalised solutions

4
 ITC’s Rural Initiatives
1. Business Initiatives with Social Benefits
• ITC eChoupal
• Social Farm Forestry
• Agarbatti Sourcing
2. CSR Initiatives aligned with Business
• Watershed Programmes
• Livestock
• Agri Extension

5
 Common Themes
Theme Outreach Effective Cost
Orchestrated Ecosystem *
Leverage Technology * * *
Anchor Business + Riders *
Co-creation with Communities * *
Co-opt Informal Institutions * * *
3rd Party Pays *
Context Specific Aggregation * *
“Pull” through awareness * * *

6
Key Enabler & The Hurdle!

Policy Regulation in Agri Sector

• APMC Act
• Essential Commodities Act
• Forward Contracts Regulation

7
 ITC’s Plans in Financial Inclusion

Already work with SBI to extend reach of KCC

Studied the BC model
• Moving Cash is the biggest cost
• Need to balance cash in a local area, or Build a Merchant
Ecosystem for cash-less transactions

Exploring a Consortium consisting of a Bank,
Technology Providers and ITC’s Rural Network as a
Delivery Vehicle (as & when regulations permit)
• Made to Design ATM at Village Retailer
• Samyojak moves Cash riding on FMCG delivery system
• Raise awareness about formal Banking at Choupal Haats
8
Thank You