FINANCIAL

INCLUSION
Reaching the
unreached….
 NEED FOR FINANCIAL INCLUSION

• 66% of the population is still financially excluded

• 73% of the farmer households have no access to formal

sources of credit and depend on informal sources to
meet their requirements

• Affordable FI is to enlarge livelihood opportunities and

empower poor.
• FI is an integral part of the mission of govt. to ensure
Inclusive Growth.
• FI provides bank with an opportunity to tap vast rural
population and generate new clientele & business.
 FINANCIAL INCLUSION PLAN (FIP)

• FIP is the plan of the bank for providing banking services

in all villages in the service area of their branches by
2013.
• All commercial banks have to submit their Board
approved FIPs to the RBI by March’10.
• Sub committee of the Distt. Consultative Committees
(DCCs) formed by the Lead Banks are also preparing a
roadmap to provide banking outlets in every village with
a population of over 2,000 by March 2011.

• FI can be ensured through various means like by ICT

based models besides regular Brick & Mortar branches.
 Identification of Villages

• Data source: Regional & Zonal Offices

• Villages: Falling in service area of Bank’s branches
having no banking outlet
• No. of such villages with population of >2000 = 6000
• No. of such villages with population of <2000 = 14000
• Plan for coverage:
Financial Year ending March’11 March’12 March’13
Estimated no. of villages 6000 7000 7000
to be covered
 Models to be used

• ICT based Model: BC Model

•ASP model using POT Devices and Smart Cards
•Engagement of BCs: Sec.-25 Co., NGOs, Kirana
Merchants, Petrol Pump, Retired bank employees, post
offices etc
•Scope of services: Saving products, Credit products,
Insurance, Remittances, etc
•Open standards specified by IBA & IDRBT to be followed
 Models to be used

• Satellite branches / Mobile Vans:

•Cluster of villages can be covered by Bank’s staff using mobile
vans
•Transactions carried out during the day can be entered at day
end in the concerned branch
•Mobile vans can be provided with suitable connectivity to carry
out online transactions.

• Kiosk Banking: Internet based model

• Transactions through Kiosks by Biometric authentication
• Can be established at CSCs developed by State Govts. where
the VLE can be engaged as the operator
• 25 kiosks can be established in potential villages covered under
Mobile Vans
 Models to be used

• Mobile / Fixed Biometric ATMs:

•Van mounted Mobile ATMs
•Could be used by regular customers as well as Smart Card
holders
•Initially 5 mobile ATMS can be established
•5 fixed ATMs can be established in each of the 3 years
under FIP

• Brick & Mortar Branches:

• Regular branches can be opened in bigger villages
• Such villages to be identified during course of finalization
of branch expansion plan
 Implementation & Plans for Rolling Out

• Process for Vendor Selection, Infrastructural

Arrangements:
•Vendor to be selected through process of RFP
•Infrastructure items also to be procured through RFP

• Implementation:
•2010-11: 6000 villages 5700 – BC model
300 - Mobile Vans
•2011-12: 7000 villages BC Model
•2012-13: 7000 villages BC Models
 Estimated Cost Structure

Satellite Branches / Mobile Vans

S. No. /
Particulars
No Total
1. No. of villages to be covered 300
No. of villages covered by each van (each
2. 18
village to be served once a week)
3. No. of staff required / van 3
No. of HHS to be covered (1000 HH /
4. 300000
village)
5. Total no. of mobile vans required 17
Estimated annual cost (including Hiring Rs. 204
6.
charges of van, staff cost, other misc. cost) lacs
 Products to be offered

Banking Products
1. No frill accounts with inbuilt limited OD facility
2. BKCC
3. BGCC
4. Recurring deposit

Non Banking Products

• Small Remittances
• Insurance products like health insurance / life insurance
and other Third Party Products
THAN
K
YOU!!!