Enabling Inclusion

C 0


The Financial Expres




Source: Financial Express, 20th February, 2011

Branchless banking

Fe ture

• Retail touch pOint


• Cash in/out

• Account opening

• Electronic transaction acquisition

• Initiation of electronic transaction r quests

• Mess 9 h ndllng

in the ex-

Key regu tory Issues

• Who can provide cash in/out s (vices?

• What at the rol s & ( sponsibilitl s of bank vs. retail outlet?

• can KYC v rifle tion be outsourced to retail outlets?

Clien authentication (2 f ctor?)

• Messaging security ( oc-to- nd ncryptlon?)

• Receipts (p per or electronic?)

Bank Branch Pene


Branch p n tration a rag S 0 branches per 100.000 p ople in the poores count qulnUle. compared ith 331n the richest country qulnUle. AT s are even scarcer in poor countr est

a raging only 1.3 per 100 000 people In th poorest countrv ouln I ~compared

ith 67 in th riches country quin Ie.

- Bill ellnda G es Foundation

• Li bility holder of r cord


r sponsibllitles

• Account • Int lnin ccoun

m nt bal nc s

Account j suanc

.Inv tm nt • Liquidity nd solv ncy

Of funds

can It b ou ourc d to non-e n ?

C n custom r d ta b stored bra d?

nd th ir

orm I prud nti I regul tion



Transaction shares for ICICI (0/0)

2000 2009

100 90 80 70 60 so 40 30 20 10


Debit cards (in lakhs)

2.000 1.800 1.600 -------------"

1.400 1.200 1.000



00 200 o FY'06 FY'07 FY'08 FY'09 FY'IO

card Security

With 230 million cards issued across the country nd 396 million tr nsactlons processed each month, the biggest concern with this syst m Is promoting Its spre d while ensuring h s curity

nd protection of con um rs' funds. To this end, the RBI has m nd ted an additional r ctor of authentication for all care- not-present transactions.

Addition lIy. they re debating move to th mor s cure 'Chip and Pin' cards to pr v n cIon ng.

SHG-bank linkage

S 45.000

i 40.000--------1- o 35.000

't; 30,000

~ 25.000

~ 20.000 ~_-~

_ 15,000

l 10.000

~ 5.000.....::~::::::::=_ .....l..

E 0

B 1999-00



CONCLUSION ~ ral trid ha

Tneumterisaneconomi tounecentrejor Ftnancial Inclusion. tnatcusenatvna. You canreachhimot aman. rioas taoat« indicus.n t (Til third and laSipana! this rt " ill becarried on Febmury 27,)

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