Andhra Pradesh Smart Card Project- Status in April 2012

1. Welcome
Presentation on
SMART CARD
Commissioner, Rural Development

2. Outline of the presentation
 Objectives
 Approach
 Architecture
 Key Process
 Roles and responsibilities
 Phase – I
 Phase-II
 Progress at a glance

3. Objectives
 To increase the outreach of main stream banking and
financial services to the poorest of the poor by using
technology based solutions.
 Ensure efficient and timely transfer of govt. benefits to the
poor.
 Minimize the possibility of fraudulent payments.
 To achieve Total Financial Inclusion.

4. Approach
 To create branchless banking infrastructure.
 To open accounts and issue Smartcards to the poor.
 To begin with payments of NREGS and SSP.
 Banks subsequently deliver banking services.
 To establish a banking out post in each village.

5. Architecture
 Banks lay down the entire infrastructure.
 Banks will select Service Providers and Business
Correspondent through competitive bidding.
 Service providers to provide technology.
-- Technology includes PoS equipment
biometric reader and Printer.
 Business Correspondent delivers financial services to
people.
 PoS is manned by CSPs (preferably from SHGs)

6. Technology (M/s Fino)
Image Receipt
Generation Slot
Template Arrow Key Slot to
Code for starting capture
the device thumb print
11001000…
F button
Slot to insert
Operator /
Customer card

7. Technology (M/s Little World )
 Based on new generation Near Field Communications (NFC) mobile
phones; contact-less RFID smart cards and integrated biometrics.
 Alternate option of attaching fingerprint scanner + card reader to a PC or
PoS.
Can also be deployed on PCs -
by adding a NFC card reader +
fingerprint scanner (both USB
peripherals costing about Rs.
6000)

8. Key- process
1. Enrolment
– Department gives list of beneficiaries – SSP & NREGS
– Concerned bank / Financial institution conducts an
enrolment camp in the village.
– GPs, VOs assist the organization in identification of
beneficiaries.
– 6/ 10 finger prints, photo and other details of the
beneficiary captured.
– An account will be opened in the name of beneficiary.
Contd..

9. Key- process Contd..
2. Preparation and issue Smart Card.
– Data collected during enrolment is encrypted on the
card including biometric. (Encrypted Java smart card
with 32 KB memory).
– Card is delivered to the beneficiary in the village within
three weeks.

10. Key- process
3. Business Correspondent (BC) & Customer Service
Provider (CSP)
– Bank / FI appoints a business correspondent.
– To deliver service at GP level.
– BC appoints CSP at the village level.
– Training to BC/CSP.
– Required hardware like Finger print reader, printer,
mobile phone etc., are positioned in the village.

11. Key- process
4. Payment
– Government issues instructions to the Banks / FI
authorizing payment.
• List of beneficiaries and authorized amount will
be given.
– Individual account of beneficiary is credited.
– Cash is physically transported and delivered in the
village to CSP.

12. Key- process
5. Disbursement
– CSP sits at pre-designated government premises usually
GP building etc.
– Beneficiary approaches with card.
– Card is inserted in the card reader and identity of
beneficiary is established.
– Based on the a/c balance of the beneficiary as displayed
on the screen, cash is paid.
– A receipt is generated in duplicate.
– A manual acquittance also maintained.
– In case of exigencies, manual payment is made.

13. Key-process
6. Data uploading
– CSP / BC uploads data of disbursements daily.
– MIS report on progress of disbursement is submitted to
Government.

14. Roles and responsibilities
Role of Rural Development
– Policy decisions are taken by the department.
– Put in place appropriate systems and
procedures for transfer of payments.

15. Roles and responsibilities
Role of Banks
– MoU with Government.
– Conduct enrolment camps at village level.
– Open SB account and issue Smart Card to beneficiaries.
– Appoint, train and enter into contract with BCs.
– Credit pensions / wages to the account of the beneficiaries
and disbursement at village level.
– Maintaining centralized database.
– Provide all required MIS from time to time.

16. Roles and responsibilities
Role of District Collector:
– Formation of District Implementation Committee.
– Oversee the entire implementation process.
– Conduct review meetings every week for a period of 3
months, then have monthly meetings.
– Identify bottlenecks and inform to the State Level
Steering Committee.

17. Roles and responsibilities
Role of DRDAs
– Supporting enrolment of beneficiaries
– Provide information about SSP beneficiaries.
– Facilitate the VOs/SHGs in Identification of CSPs
for BCs.
Contd..

18. Contd..
– Provide copies of Pension payment orders by 25th of
every month.
– Transfer pension amount to the bank a/c
– Ensuring smooth disbursement of pensions
– Consolidating MIS reports and forwarding to Head
office.
– Pay 2% service charges of the value of pension benefits
disbursed in the district by the Bank after reconciliation.
– Monitoring and periodical review.

19. Roles and responsibilities
Role of DWMAs
– To provide list of wage seekers for enrollment.
– 1% service charges with e-pay order and 1% service
charges after reconciliation to the Banks.
– Ensuring smooth payment of wages.
– Consolidating MIS reports and forwarding to Head
office.
– Conducting regular review meeting with the MPDOs.

20. Roles and responsibilities
Role of MPDOs.
– Shall make necessary arrangements for enrolment
process.
– Shall send electronic copy and hard copy of Wage
payment orders to the Banks.
– Transfer funds to the bank A/c
– Ensuring smooth disbursement of SSP and payment of
wages.

21. Roles and responsibilities
Role of Business Correspondent (BC)
– Shall be responsible for money evacuation.
– Appoint and enter into MoU with CSP.
– Provide training and handholding to CSPs.
– Ensure smooth disbursement of SSP and Payment of
NREGS wages.

22. Roles and responsibilities
Role of Customer Service Provider (CSP)
– Shall operate the terminals.
– Shall disburse the pensions from 1st of every month.
– Shall make payment of NREGS wages once in a week.
– Shall upload information on a daily basis.

23. Phase-I districts
With service area approach
Sn. District Bank Service Provider
Axis FINO
CORPORATION INTEGRA
1 Chittoore INDIAN BANK INTEGRA
INGVB FINO
SBI ALW
UBI FINO
Dept of Posts APOnline
2 East Godavari AB ATYATI
ICICI FINO
INGVB FINO
SBI ALW
UBI FINO

24. Phase-I districts
With service area approach CONTD
Sl. District Bank Service Provider
No.
3 Karimnagar ICICI FINO
SBH HCL
SBI ALW
UBI FINO
4 Mahaboobnagar APGVB ALW
ICICI FINO
SBH CORAMANDAL
SBI ALW
UBI FINO

25. Phase-I districts
With service area approach CONTD
Sl. District Bank Service Provider
No.
5 Medak APGVB ALW
ICICI FINO
SBH HCL
SBI ALW
UBI FINO
6 Warangal AB ALW
APGVB ALW
AXIS FINO
PNB ALW
SBH ALW
SBI ALW
UBI ALW

26. Phase – II districts – one bank one district
model
Sl. District Bank Service
No. Provider
01 Visakhapatnam Union Bank of India FINO
02 West Godavari Union Bank of India FINO
03 Prakasam Union Bank of India FINO
04 Srikakulam Andhra Bank ATYATI
05 Guntur Andhra bank ATYATI
06 Khammam APGVB ALW
07 Nellore State Bank of Hyderabad TCS
08 Adilabad State Bank of Hyderabad HCL

27. Phase – II districts – one bank one district
model CONTD
Sl. District Bank Service
No Provider
09 Krishana Axis Bank FINO
10 Rangareddy Axis Bank FINO
11 Ananthpur Axis Bank FINO
12 Kurnool Axis Bank FINO
13 Nalgonda Department of Posts. APOnline
14 Nizamabad Department of Posts APOnline
15 Vizianagaram Corporation Bank INTEGRA
16 Kadapa ICICI FINO
17 Hyderabad ICICI FINO

28. Overall progress at a glance (Rural)
 No. of districts : 22
 No. of GPs where project is under way. : 21805
 Target no. of benfs. under SSP & NREGS : 188.66 lakhs
 No. of benfs, enrolled : 142.26 lakhs
 No. of cards issued : 134.57 Lakhs
 Amount paid : Rs.4179.84 Crs

29. Overall progress at a glance (RURAL)
No. of Districts Enrollment started : 22
SSP NREGA Total
No.of GPs Enrollment 20913 20294 21024
started
Target (No.of 64.60 lakhs 124.06 lakhs 188.66 lakhs
Beneficiaries)
No. of beneficiaries enrolled 55.27 lakhs 86.99 lakhs 142.26 lakhs
No. of cards issued 52.16 lakhs 82.41 lakhs 134.57 lakhs
GPs Payment started 18249 16776 18789
Amount paid Since Inception 1866.28 Cr 2313.56 Cr 4179.84 Cr