• There are several definitions for Financial Exclusion (perhaps we need a standard even for that) • Financial Exclusion may be defined as
– inability services to access mainstream financial
• Bank accounts • Low cost loans
– lack of reliable financial advice
easy and affordable credit and other financial services for economic growth. reducing income disparities and reducing poverty
access to safe.
Supportive Financial Services
Source : RBI
– Savings Accounts 610.Progress in Financial Inclusion
• Accounts with Institutions (2007)
(SCBs. RRBs. Primary Agri.10 million (25/100 adults)
• “No-Frills” accounts (Mar 2008)
15. Co-op Societies. Urban Co-op Banks.83
.20 million (82/100 adults) – Credit accounts 187.
• • • • • • • • • Enrollment of large numbers Wide geographic spread High maintenance costs for accounts Small ticket size of transaction Illiteracy and use of vernacular Product & service pricing Trust and acceptance Lack of electricity Poor telecommunications
Salient Features of our RFP
• • • • Proven Technology Scalable and interoperable system Contact or Contactless smartcards Fingerprint image acquisition as per RBI norms • End-to-end Solution (technology and banking services)
. Smartcard OS. Applications.Technical Specifications RFP
– ISO 14443 / ISO 7816 – Standard dimension PVC / Polycarbonate Card – DES/3DES (key length 1024/2048) – EMV Compliant – 32 K EEPROM memory – Hold User Certificates.
• Handheld devices
– Integrated system or 2/3 components – ISO 14443 / ISO 7816 and ISO 18092 for read and write operations – Built-in PKI support – EMV Compliant – Multilingual support – Online & Offline capability – Secured storage and communication – Long hours of battery support
.Technical Specification .
ANSI-378 Encrypt fingerprint minutiae with 3 DES Scanner surface to be resistant to dust. extreme temperatures. shocks. residual images Standard for Data-Interchange . etc
. capture-size 13mm wide x 17 mm high Pixel density 500 ppi with + 5 ppi Pixel depth 8 bits 200 grey levels (dynamic range of scanned image) Sense live-scan plain finger impression Strong anti-spoofing features Protection from ambient light. electronic discharge.inch Min.Technical Specifications RFP
• Fingerprint Scanner
– – – – – – – – – – – – Image acquisition at setting level 31 of ISO/IEC 19794-4 Contact area 1 x 1 sq. humidity. ambient light.
Responses to RFP
.Pros and Cons of some Technologies
.Pros and Cons of some Technologies
Architecture suggested by Govt. of AP
FRONTEND SYSTEMS CONNECTIVITY BACKEND SYSTEMS
Biometr ic scanner
ISO 19794 GSM/GPRS/PSTN/ LEASED LINE/ INTERNET
Sma rt Card
Smar t Card Read er
POS Termina l Print er
Financ ial Switch
Backen d Bankin g Server
ISO 78164/ ISO 14443-4
devices and systems that simplifies development. deployment and management of applications across industries”
. maintain and pursue adoption of standards so as to enable an open and interoperable infrastructure for smart cards.Objective
By introducing standardization in financial inclusion we aim to “Establish.
– flexibility and freedom of choice
• Ability of one application to communicate seamlessly with another • Ability to mix and match various components from one vendor with those of another • Ability to interact between one organisation and another • Ability to transact between different users that do not use same technology
Generic to any Smartcard Type Generic Card Personalization Lifecycle management of different card types
End-to-end Transaction handling
Card Management Software
. Card Management Software Interfaces/integration with existing Core-Banking software.Standardization in Applications
Developing Generic Interface for Enrollment for use of
Business Agent Customer Bank Officer Application on handheld smart device Application on Switching/Intermediate server Backend Banking software (business logic).
refund. deposit.Standardization in Transaction
ISO 8583 Standard for transaction request and response between HHT and Intermediate server Cardholder-originated transactions include withdrawal. Reconciliation of transactions of BC account and customer account Standards for checking the validity of the card in HHT and routing of transaction from Intermediate server to other bank server
. payments and inter-account transfers. reversal. balance inquiry.
Standardization in Security
Enrollment station Security of data stored on the system Secured mode of data transmission to server Hand Held Terminal Authentication of business correspondent & Customer Standards for Fingerprint scanning / threshold of match for authentication of customer Secure transfer of Data between HHT and smartcard Secure interaction between HHT and Intermediate Server Intermediate server Security of data
1 & Global platform 2. e-passports. VISA Wave. Id cards. loyalty & e-purse.5 Bn growing at 25-30% CAGR Ticketing.2 (java card 2. wrist strap. single digit growth) GSM SIM.Technology Standardization aspects of
Interface Standard Deployment (approx) Applications Security
Physical Electrical Contact
RF (13. Humid environment. Master card Pay pass cards Can support Dual Authentication / 3 pass authentication / DES / 3 DES / AES / PKI Can Support Biometrics <144 KB Non OS (1KB / 4 KB / 4KB DESfire / 8 KB Desfire) OS cards (16 KB / 32 KB / 72 KB / 144 KB)
3 Bn (mature.1) specifications Incumbent card for banking applications globally Chosen by global banks for credit/debit micro payment cards of the future (EMV Contact-less specs available) Suitable for Dust.g. Need not be in the card form factor (e. pendent etc)
Will be replaced by contact-less except may Next Generation Mobile Transactions would be based on be in SIM cards ISO 18092 standard which is a super set of ISO 14443 standard + security aspects
. EMV Dual Interface cards Can support DES / 3 DES / AES / PKI
External Authentication Can support Biometrics Memory <144 KB OS cards (16 / 32 / 72 / 144 KB)
OS Inter-operabililty Advantages
Native or Java
Native or Java
Inter operable only if OS is open conforming to JCOP 2.1. does not need physical contact with the reader.56MHz) ISO 14443 A 1.
SCOSTA Thermal printer Speaker Connectivity (GPRS/CDMA) Support Offline/Online transactions
Improved operational efficiency. Eliminates challenges in identification of defects in multiple devices. reliability and better logistics. DESFire.
. JACOP.Standardization of Integrated Hand Held Terminal
LCD display Keypad Optical Biometric Finger print sensor ISO/IEC 19794-4 Contactless Smart Card reader with Mifare.
Merchant Establishments.Deployment channel -1Card Many Applications
The smart cards can be used for various purpose like Financial inclusion. Government initiatives like Pension. NREGS disbursement.
Financial Inclusion Merchant Establishments
NREGP Disbursement Pension Disbursement
. Shopping Malls etc. ATMs.
• • • • • • • Service Providers Chip Manufacturers Card Manufacturers Device Manufacturers Software companies Application Developers Systems Integrators
• • • • • • • • Smart Phone ATM Point of Sale Termnial Personal Computer Telephone Mobile phone Set-top Boxes Kiosks
.Achieving Synergies .
N. OF INFORMATION TECHNOLOGY ANDHRA BANK.co.com dgm-dit@andhrabank. HEAD OFFICE. BHARATH BHUSHAN REDDY
DEPUTY GENERAL MANAGER DEPT. HYDERABAD nbbharat@yahoo.