EBT Model of Post Offices - Challenges & Outcomes
in Operating at Scale
Sandhya Rani. KPostmaster General (Busi.Devpt.& Technology)Hyderabad, Andhra Pradesh
Enhancing Delivery of Govt. to People Payments in Rural Areas Intnl. WorkshopNew Delhi, 29.11.12
Plan of Presentation
• Post Office EBT Model in Andhra Pradesh– Factors leading to the Initiative– Coverage– Implementation Arrangements– Technology solution– Achievements & Outcomes
• Lessons & Challenges• Policy Implications & Areas for Action
Factors leading to PO-EBT Model
ExternalAP Govt. ICT Model for MGNREGS implementation
eFMS fund flow to last payee & ensure real time MIS Integration w/State Govt. smart card projectInternal
Over 13 million Wage Accounts manually handled!! To avoid delay in payments To avoid fraudulent payments To ensure real time MIS To address competition from Banks!
PO – EBT Model – Implementation Arrangements
• Tripartite Agreement in GoAP, DOP and AP Online
• Online fund flow
• Post Office Savings Bank Account
• Local SHG women as Postal Franchisee/CSP in GPs without PO
• Robust Monitoring & Alerts System
Post Office EBT Model - Coverage
MGNREGS Wage Payments• No. of Gram Panchayats: 5125• No. of Districts: 9 (5 underway)• No. of Post Offices: 3613 • No. of Wage seekers: 4.02 ml. • Wage amts. disbursed: Rs.8588
ml.
Social Security Pensions• No. of Districts: 2• No. of Post Offices: 1196• No. of Pensioners: 1.2 ml.• Amount disbursed: Rs.2173
ml.
Technology:• POTD front end, offline transactions and day end Sync with Server• Central Server and application support• Real Time MIS on Portal - http://appost.aponline.gov.in
1. Generation of Pay Order
at MCC
2. Uploading of generated Pay
Order to NREGS Server
3. Authorisation
of FTO by CRD
4. Confirmation of remittance by the Bank
5. Pushing the Pay Order to AP
Online Server (pulled date)
6. Approval of Pay Order by the
Head Postmaster after receipt of
FTO
7. Crediting wage amounts
to individual SB accounts
8. Downloading Deposit data to the POTDs
9. Supply of Cash
10. Payment of Wages & Upload data
Cycle of Wage Payments
Electronic Benefit Transfer- Disbursement of MGNREGS Wages
33
55
66
BO
(MCC)NREGS State Data Centre
11
22
MCC
77
33
44
66
77 33
Muster Roll
66
Wage Disbursement – Day Wise Activities
BO
(MCC/DCC)
NREGS State Data Centre
MGNREGSCentral Fund
AccountFTO to Bank
Fore Transfer
Fund Transfer through Bank
Entry of Musters & Measurements
Day 1/2
Day 2
Day 2/3
Day 2
Day 1
Day 2
Day 3/4
Post Office Wage Payments System
Each Day
District Year Month Total No.
Transactions
% Paid In
1 TO 4 Days
5 TO 7 Days
8 TO 14 Days
>14 Days
Nizamabad 2010 May 1.27 ml 20.31 18.25 26.95 34.48
Nalgonda 2012 June 1.29 ml 27.69 17.19 23.93 31.18
Delay Analysis (Peak Month)(From Pay Order Fetched Date To Paid Date)
Achievements & Outcomes
• 100% authenticated payment , no manual payment• 100% - Real time MIS • Wage disbursement: < 7 days (40 - 45%); 7- 14 days (55 - 60 %)• Pension Payment, much appreciated by Pensioners• Biometric failures – 0.1%• Delay Payments – different reasons– Wage seekers desire to save & not w/d wages
immediately– Delay in issue of Wage Slip – Delay Cash supply – POTDs failures– Inadequate monitoring
Lessons & Challenges
• Lessons– Tripartite arrangement works better – Demonstrated the power of rural postal network– Transaction without Smart Card – Security of biometrics?– Need to strengthen Cash Supply Systems
• Technology related– Repeat enrolments – absence of interoperable data systems– Integration of Post Office with eFMS – Need for fast tracking R-ICT Project of Dept. of Posts
• Operational Issues– Dedicated Project Mangers & Capacity Building– Limited working hours of Branch Postmaster– Mechanizing & Monitoring Cash Supply Lines
Leveraging the PO NetworkItem of work Coverage Volumes
Existing PO SB All India • No.of SB Accounts:265 ml.• > Available in > 150,000 POs
MGNREGS wage Payments
All India • No. of Accounts: 58 mil• Amt disbursed: > Rs.300,000 mil•> 97,972 POs
Govt. Benefit Transfer –
Pensions*
Kerala, T.N., Karnataka, Rajasthan, H.P. Gujarat,
• >5.3 mil Pensions MOs/ month• Amt paid – 125 crs• Commission earned – Rs.70 mil• > 1.3 ml SB accounts too
Indiramma Housing Scheme
A.P. • No. of SB Accounts: 0.63 mil• Amt disbursed: Rs. 9600 mil• 14, 683 POs
Untapped! • Direct Cash Transfer•SHGs, W & CD payments, Tribal Welfare, Informal Sector Workers SSS
Policy Implications & Areas for Action
1. Financial Inclusion & other departments related– POSB as an instrument for Financial Inclusion– Restrictive definition of ‘no frill account’!– Integration with Aadhar Authentication System – Reengineer CGA business processes relating to PO A/ctg Sy
2. Strategy & Approach – DOP– Put in place Inter – operable system w/Aadhar link – Strengthen ‘last mile connectivity’.– Ensure robust real time MIS & monitoring systems– Fast Tracking Rural – ICT Project
Policy Implications & Areas for Action
3. Human Resource & Establishment Review– Orientation and capacity building at different levels– Strengthening P.O Franchisee/CSP Model: Thinking beyond
Branch Office Network– Simple & easily implementable incentive system– Performance based remuneration for GDS BPMs– Simplifying establishment review system of ED BOs
4. Changing POSB Business Processes:– Inline with Biometric based authenticated payments– Stop duplication of data processing
Policy Implications & Areas for Action5. Financing Post Offices– Change conservative authorized cash balances practices– Bring in mandated mechanized cash supply systems– Liberalize norms & simplify process for opening Direct Bank
A/cts for large no. of S.Os with local Banks– Strengthen infrastructure in local rural bank branches
6. Accounting & Reconciliation – Integrating with EFMS/CFMS of State Government partners– Online fund flow to Postmasters’ Accounts– CGA to increase the no. of Accredited Banks for PO
transactions in each Circle (allow all Nationalised Banks)– Devise process for Integration into CGA reporting system to
enable PAOs pairing and reconciling Online credits