k v jain financial inclusion

8/6/2019 k v Jain Financial Inclusion

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JAIN K. VRIND & CO.Chartered Accountants Email: [email protected]

Financial Inclusion

CA Krishan Vrind Jain09417009490


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JAIN K. VRIND & CO.Chartered Accountants

Purpose

With RBI tightening its screws by intensifying its

drive on banking the unbanked.

T

he financial inclusion scenario has finally evolvedin India. This concept has already been tried &

tested in the African continent & in UK, with the

projects turning out to be highly satisfactory.

More than 51% of the rural population does nothave access to basic banking facilities.


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Scope of the Project

The solution will be smart card based where theBank will use the smart card to execute bankingtransactions along with loan schemes run by the

bank. Basic supporting applications:

1. No frills account

2. Cash Deposits

3. Cash withdrawal

4. Loan acceptance


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Scope of the Project our

responsibility

We will comply with guidelines issued by RBI and

IBA for the Financial Inclusion Project,

appointment of BCs etc.

a. Enrollment & account opening

b. Smart card issuance

c. POS deployment

d. Connectivity

e. Back-end data maintenance and updations


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Enrollment & Acct opening

i. Enrollment of Customers in coordination with the Bank.

ii. Account opening as per the parameterization ofbanks CBS system

iii. Render banking and financial services as entrustedby the Bank thru Business Correspondents atdesignated locations to all the customers covered inthe project, duly complying with RBI guidelines.

iv. Cash management and acceptance and payment ofcash as per the requirements of Government Bodiesand the Bank and providing proof of payments to theBank periodically.


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Smart card issuance

i. Supply of smart cards

ii. We have to undertake personalization of cards &

initiate a Card Management System.

iii. This process would be flexible and can be scaled

up to absorb additional load.


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POS deployment & Connectivity

i. Providing BCs with a hand held terminal

ii. These POS should run applications capable ofaccount opening, accepting transactions/Customerenrolment data from various devices deployed for thepurpose of Financial Inclusion.

i. Connectivity between Intermediate System anddevices placed in the field.

ii. Provide interface and establish connectivity between

Intermediate System and the backend banking system. iii. Provide interface with Banks Core Banking

Solution.


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Back-end data maintenance &

updations

i. Interface for migration of data related to account

opening in to banks CBS system

ii. Ability to handle large volume of trnxs

iii. The backend banking system would be

maintained and managed by us at our data centre.


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Project Strategy

The proposed Card of the Bank would be a

contact chip-based smart card with fingerprint

identification facility, having provision to support

multi accounts with a minimum of 10 to 12

accounts including deposit, loan and other

accounts. The Smart Card Solution would have an

interface with the banks Core Banking Solution.

The cardholders should be able to perform

selected banking transactions through authorized

business agents


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These representatives of our co. will extend

banking and financial services and basic banking

services like savings, credit, remittance, insurance

and pension to card holders on behalf of the Bank

to its customers during the time window and at the

frequency stipulated by the Bank.


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Intermediate System (ourServer)

The data from the Customer Service Points (CSP)

would be received in Bank's centralized server via

an intermediate system. All the transactions from

the fields as well as customer enrolment data fromBusiness Correspondent will be uploaded to the

Intermediate System.


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Bank's Backend System

Accounts under Financial Inclusion will be

individually opened under the Bank's existing Core

Banking System. We will be responsible for

providing the data in the required format andstructure prescribed by the Core Banking Solution

service provider so that the accounts are smoothly

uploaded to the CBS system.

Customization will be required for each bank for

this purpose.


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Fraud etc Concern

RBI Provides for the liability to run this project is of

the bank.

Banks in turn are asking vendors to accept the

liability for fraud.

Vendors like us are incorporating the safety

clauses in the Bcs appointment agreement.

However total system of banking is responsible fordata on card or printout from the POS machine

only.


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OurBest Entry Strategy

Since we are new to this field so the best way to

enter this will be to run a pilot project for a bank for

5 to 10 villages for proving our technical viability

which banks are normally allowing as a test case.

This can be done individually or with a consortium

of providers also depending upon our comfort to

initial investment.

k v jain financial inclusion

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