The Hindu : Andhra Pradesh News : ‘Smartcard’ to benefit 30 lakh rural poor

Online edition of India's National Newspaper
Saturday, Nov 10, 2007
ePaper

Andhra Pradesh

Andhra Pradesh

‘Smartcard’ to benefit 30 lakh rural poor

Ravi Reddy

The pilot project successful in two districts

Plan to introduce banking services to the low income groups
The scheme to be extended to eight more districts

HYDERABAD: The successful disbursement of payments under the AP Rural Employment Guarantee Scheme (APREGS) and Social Security Pension Scheme (SSP) on pilot basis in Warangal and Karimnagar districts using the ‘Smartcard’ technology has prompted the Government to extend its reach to eight more districts in the coming few months.

A whopping 30-lakh rural people will benefit from the Smartcard technology, as part of the Total Financial Inclusion (TFI) that aims at providing delivery of banking services at an affordable cost to the low income groups.

Eight districts

Medak, Mahabubnagar, Chittoor, East Godavari, West Godavari, Nellore, Krishna and Visakhapatnam districts have been identified for implementation of the programme to ensure proper targeting, identification of the beneficiaries besides prompt and accurate payments in a transparent manner.

The Rural Development Department has entered into partnership agreement with State Bank of India, State Bank of Hyderabad, Andhra Bank, Canara Bank, Union Bank of India and Axis Bank for use Smartcard technology.

Each bank will appoint a business correspondent in each village to provide alternative branch based banking services to the beneficiaries in the districts to be covered shortly.

Principal Secretary (Rural Development) K. Raju told The Hindu that the Smartcard would contain basic data relating to the beneficiary and also store the biometric data (fingerprints) for purpose of receiving APREGS and SSP payments.

“Each beneficiary under the initiative is issued a zero balance savings banks account for banking related services,” Mr. Raju said.

The business correspondent will be authorised to undertake transaction on behalf of the bank that includes collect of small value deposits, disbursal of credit, sale of micro insurance and other financial products.

He will be provided with a point of sale equipment, which could be a palm top, hand held recorder or mobile phone based device. This instrument would be fitted with a printer, a biometric identification device and related software.

More services

Mr. Raju said the beneficiary can approach the business correspondent in the village for financial transaction. “Plans are afoot to include 14 more services through the Smartcards,” he added.

Rural Development Minister G. Chinna Reddy said Chief Minister Y. S. Rajasekhara Reddy had directed the department to work out modalities to cover the entire State through the Smartcard technology to avoid alleged irregularities in disbursement of money.

Printer friendly page
Send this article to Friends by E-Mail