Enhancing Business in the Changing Landscape of

Banking and Financial Services in Rural India

Date : 26 May 2016

Venue : Mumbai
 Banks in India

Commercial Banks

Public Sector Banks (27)

Cooperative
Local Area Banks(4)
Banks
Private Sector Banks(22)

Payment Banks(11)*
Next
Foreign Banks (43) Slide

Small Finance Banks(10)*

* proposed
RRBs(56)

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 Cooperative
Banks

Rural Urban
Cooperatives Cooperatives
(1589)

Short Term Long Term

Structure Structure
StCB(33)
SCARDB (18)
DCCBs(347)
PCARDB (697)
PACS (> 90,000)
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Rural Banking – Diverse Business Models
ALTERNATE
BRANCH DELIVERY
CHANNELS
EXPANSION
Micro
ATM
Physical
BUSINESS Biometric
Branches
CORESSPONDENT ATMs
MODEL
Ultra Small Mobile
ATM
Branches
White
Label ATM

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Common Services Centers (CSCs)

Strategic cornerstone of the Digital India programme. Target 2.50 lakh CSCs

Non-discriminatory access of e-services to rural citizens

1.40 lakh CSCs. 91% transactions are G2C services

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How Technology is changing the Rural Life

E-Panchayat---access to the basic E-Choupal- -helps farmers-information

services in Rural India as the first-level on weather, market price, risk
of government interaction through e- management, scientific farm
Panchayat practices.

Eseva– “one-stop non-stop service” by

AP Govt. services like eForms, eFiling
Bhoomi-- Delivery and management
and ePayments, payment of utility
of land records online -in Karnataka
bills, certificates, Transport
Department Services etc.

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Aadhar Status as a Digital Initiative

93% of adults have Aadhar

25.48 crore bank accounts linked with

Aadhar
12.28 crore LPG consumers linked to
Aadhar
5.9 crore Aadhar seeded in MGNREGS
database
Aadhar powering Digital India- Digi
Locker, e sign, etc.

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 PMJDY-Pradhan Mantri Jan Dhan Yojna
Bank Name No. of A/cs No. of RuPay Aadhaar Balance in % of Zero
opened Cards Seeded A/cs Balance A/cs
Public Sector
17.09 14.45 8.20 29525.79 26.71
Bank

Regional Rural
3.85 2.72 1.21 6511.70 22.35
Bank

Private Bank 0.81 0.76 0.32 1407.59 38.07

Total 21.74 17.94 9.73 37445.07 26.36

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Social Security Schemes

Name of the Scheme Enrollment (in lakh)

Atal Pension Yojna 25.96

Pradhan Mantri Jeevan Jyoti Bima Yojna 296.19

Pradhan Mantri Suraksha Bima Yojna 943.01

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JAM Trinity – Jan Dhan, Aadhar , Mobile

Jan
Dhan
Yojna

Serve the
Poorest of
the Poor
Aadhar Mobile
Number Number

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 E-Comm Market in Rural India

• Rural banking in India started since the establishment of banking sector in India
• Rural Banks in those days mainly focused on agri sector.
• Population overwhelmingly dependent on agriculture as their primary source of income
• majority are marginal or small farmers and many are landless.
• The financial needs reflect the volatile, uncertain, and irregular income streams and
expenditure patterns
• The marginalised need a wide range of affordable financial services—
• small advances to tide over consumption needs
• loans for investment purposes
• long-term savings that help them manage life-cycle needs.

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DIGITAL INDIA
Digital India is a Programme to prepare India for a knowledge future.

The focus is on making technology central to enabling change.

It is an Umbrella Programme – covering many departments.

• It weaves together a large number of ideas and thoughts into a single, comprehensive vision so that
• each of them is seen as part of a larger goal.
• Each individual element stands on its own. But is also part of the larger picture.
• It is coordinated by DeitY, implemented by the entire government.

The Programme:

• Pulls together many existing schemes.

• These schemes will be restructured and re-focused.
• They will be implemented in a synchronized manner.
• Many elements are only process improvements with minimal cost.

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9 PILLARS OF DIGITAL INDIA
Coverage of 2,50,000 gram panchayat through broad band optical fibre
estimated cost Rs.32,000 crore.

Universal access to mobile connectivity -connect nearly 42,300 uncovered villages

estimated cost Rs.16,000 crore.

Public internet access programme

national rural internet mission through CSCs –CSCs to become the
multifunctional end point for service delivery

estimated cost Rs. 4750 crore.

It talks about 1.50 lakh + post offices to become multi service centres.

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Contd….
Reforming government through technology - process re-engineering,
electronic data base, work flow automation and public grievances redressal.

e-kranti - e-education, e-health care, real time information

to farmers, mobile emergency service, financial inclusion

Information to all through online message to citizens, provide site

like mygov.in and online hosting of information and documents.

electronic manufacturing
– Net zero import

IT for jobs - training people in smaller town and villages for IT sector jobs, IT / ITES in
north east, train service delivery agents to run viable IT related business, telecom .

Early harvest programme -Wi-Fi in all universities, secure email

within government , standardized government email design.

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Aspirational India Vs Catch-up-India
younger generation vs 50+ population

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Thank You

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