ICT SOLUTIONS FOR FINANCIAL INCLUSION –

EXPERIENCE SHARING BY STATE BANK OF INDIA

Venue: IDRBT, Hyderabad

17th February, 2009
 Contents
1. TECHNOLOGY INITIATIVES
a) Project
b) Scope
c) Technology & Process

2. SBI’s INITIATIVES FOR INCREASING AWARENESS OF RURAL

MASSES

3. CAPACITY BUILDING OF BUSINESS CORRESPONDENT /

BUSINESS FACILITATOR

4. CAPACITY BUILDING OF OTHER STAKE HOLDERS

5. RURAL CREDIT PROCESSING CENTRES – RCPC

6. INITIATIVES IN NORTH EAST, HILLY & OTHER BACKWARD

REGIONS

2 STATE BANK OF INDIA

 TECHNOLOGY INITIATIVES : OUTLINE

PROCESS TECHNOLOGY
OUTREACH
PARTNERS
Despite different  A Little World  Smart Card & POS
technology channels  FINO  PC- KIOSK
with different front  EKO  Mobile phone
ends, the backend  TCS
interface, processing,
PRODUCTS
accounting,
reconciliation, TECHNOLOGY
 Savings
technical model etc., INITIATIVES  Recurring deposit
are only one and linked  Remittance
to CBS. Our approach  SB-OD under finalization
is across delivery
infrastructure presence
CUSTOMER BASE
PERFORMANCE
TRACKING  61 districts & 17 states covered
 Channel management Presence in North East, hilly & other
Software introduced backward regions – 21 districts , 9 states
 Computation of Card base– 18 lakh against target of 40
Remunerations to BC/BFs lakh to be achieved by Mar 31st 2009

3 STATE BANK OF INDIA

 Process : SMART CARD & POS based

WIRELESS Tech vendor

- GPRS BACKEND

 Started with ALW

POINT Chip less cards introduced SBI’s
OF  Issues: Scalability of GATEWAY
SALE
DEVICE technology vendor
 Engaged FINO as tech vendor
BC and BC. Enrollment started.
 Testing on with ATOM ; to join
DATA as tech vendor and BC
SBI CORE BANKING
CASH Tech
SMART
CARD details
CUST vary ; SBI SBI SBI
OMER
multiple BRANCHES BRANCHES BRANCHES

4 channels STATE BANK OF INDIA

 Process : SMART CARD & POS based
ENROLLMENT
Data entry in laptop/POS. Photo and capture in camera, finger print
FP scanner.
Account creation – POS Backend & then Core banking. Relaxed KYC.
Zero balance No-Frill accounts.
CARDING
Customer and account data to Card manufacturer
Keys by POS backend vendor
Card manufacture and distribution

BC ACTIVATION
Agreement & compliance processes. BC’s Account in Core banking
Biometric card to CSP (BC’s agent). POS enabled.
Office, cash , forms and Stationary provided.

Customer Operations with smart card

Session start by BC finger print validation
Operation by CSP, Customer finger validation for debits
Savings, RD, Remittance available Offline and online operations
Business hour and cash holding limit system controlled

5 STATE BANK OF INDIA

 Process : PC- KIOSK internet based

interne
t KIOSK HOST

 Pilot in Ahmedabad &

Chennai Circle. SBI’s
PC
INTERNE
Plan to tap the Kiosks under GATEWAY
T KIOSK CSC scheme across the
country.
BC DATA Finger Print device to be
provided by the bank.

VALIDATION
SBI COREBANKING
CASH
FINGER
Another diversity at all
layers
CUST SBI SBI SBI
OMER BRANCHES BRANCHES BRANCHES

6 STATE BANK OF INDIA

 Process : PC- KIOSK internet based
ENROLLMENT
Data entry/photo in PC/webcam. Finger print capture in FP scanner
attached to PC.
Account creation – link branch – Core banking. Zero balance No-Frill
accounts.
Operations after account opening in Core banking
BC AGENTS
Configured in kiosk host. Operational limits
CSP limit administration by BC online over web

CUSTOMER OPERATIONS

Session start by BC finger validation. Operation by CSP.

Customer finger validation for debits and balance query.
Savings available ; Remittance, term deposits and overdraft to be
provided later. Only real-time online operations.
Business hour and cash holding limit system controlled

OTHERS
All other features like Smart card channel

7 STATE BANK OF INDIA

 TECHNOLOGY INITIATIVES : Process – MOBILE BASED

WIRELESS Application Host-

- USSD Vendor’s
SBI
Gatew
e
Offline fil ay
BC’s
now Online in
mobil
e
CURRENT STATUS
future
phon
e  Routed Offline to Technology
SBI
BC Vendor
 3 security checks: Mobile Core
number, Booklet & Security banking
PIN
CASH MOBILE  Low cost entry for all
PHONE
CUST
OMER Different people : diversity in tech:
front, back and interface to
accommodate
8 STATE BANK OF INDIA
 TECHNOLOGY INITIATIVES : Scope

 Rural masses, Urban poor & migrant population

 61 districts & 17 states covered

 Presence in North East, hilly & other backward regions

– 21 districts & 9 states

 Card base – 18 lakh (target of 40 lakh by Mar 31st 09)

 Our approach is to ensure sustainability across the

multitude of “diverse, delivery infrastructure” present in the
country.

9 STATE BANK OF INDIA

SBI’s INITIATIVES FOR INCREASING AWARENESS OF RURAL MASSES

The Bank has conducted various initiatives to spread both

Credit/banking awareness & ICT related product
awareness among the masses.
Organizing Campaigns at village level to educate rural customers about various
financial offerings of SBI.
Organizing meetings with village residents at Gram Panchayat level along with
Village Sarpanch, wherein the Sarpanch introduces the BC (CSPs) & their products
to the villagers
Collaborating with the ‘Influential’ people in the villages(teachers, Social workers,
NGOs) in educating the rural customers about SBI offerings.
Organizing Road Shows, Skits etc. to create awareness about the advantages of
Saving money and using it for better utilities
Announcements on two-wheelers and other vehicles about SBI offerings and
informing the customers about the site & schedule of enrolment camps in the village

10 STATE BANK OF INDIA

 CAPACITY BUILDING OF BC/BF
 Origin: RBI Circular( Jan 06); Framing policies / Operating Guidelines
 Preparation of Manuals & Dissemination of Guidelines
 Selection Committee ; Eligible Entities / Individuals
 Scoring Sheet & Due Diligence
Market Reports; Involvement of CMAs
Present Status
1 National BF


 Support through CMS/Kiosk host system for

unrelated third party CSP administration for
6 National BCs
Technology vendors.
4000 Regional BCs
 Tracking of Performance through technology enabled softwares- CMS. /BFs
 Registering Code number in CMS & CBS. Over 10,000 CSPs
 Sensitivity operating staff on process involving CBS/CMS for performance monitoring & payment of
commission.

Training: Programme drawn up & training held at SBLC

Stationary/Account opening forms/pamphlets & Check list of
product/process provided
Interaction with Branches/LBOs/RBOs/RCPCs/RACPC/SMECC

11 STATE BANK OF INDIA

 CAPACITY BUILDING OF BC/BF
The Process

Risk
Mitigati
on

•BC/BF
Performan •CSP
ce •Circle
Monitoring

12 STATE BANK OF INDIA

 CAPACITY BUILDING OF OTHER STAKEHOLDERS
 Operating Staff :
 Learning contents developed & e-copies made available on the web/intranet
for permanent reference.
 Sensitization of all AGMs/Branch staff towards Technology Solutions.
Training including technical hands-on on Channel Management Software.
 Banks own staff involved in Vendor Software – Escrow Activation &
Recovery Testing.
 Special training for CM(Rural), OMRs, MRT leaders & CMAs. On the job
training provided to the concerned staff.
 Vendors:
 Loan to Technology vendor for procurement of machinery , thus increasing
their capacity.
 Multiple Vendor Technologies enabled for online transactions with the bank’s
system. Auto reconciliation & MIS support for CSP level reconciliation
management through gateway software.

13 STATE BANK OF INDIA

 RURAL CENTRAL PROCESSING CENTRES – RCPC
Framing policy & Operating guidelines.
Compilation & distribution of Manuals.

Setting up RCPCs – target Circle wise. CURREN

Linkage of channels – Branch /BC/BF/MRT. T
STATUS
Placement & Training of staff.
126
Monitoring of launch of RCPC.
active
Processing of all loans in all segments –
RCPCs
PER/SME/AGRI.
Productivity/TAT norms laid down.
Monitoring of performance/TAT/
productivity.
Gradual scale up Success in
Infrastructure & Processing Methodology implementing the
is in place and being fine tuned RCPC structure &
processes to help
Foundation for credit data & loan services in laying the
already laid down foundations for
Workflow/Origination/Processing software the Rural credit
being arranged bureau.

14 STATE BANK OF INDIA

INITIATIVES IN NORTH EAST, HILLY & OTHER BACKWARD REGIONS
NORTH -EAST Cumulative position at end
of the quarter (Dec 08)
 No. of rural/semi urban branches : 409
 No. of ATMs : 151
 Rural : 40
 Semi urban : 111
 No. of RTGS enabled branches : 484
 No. of No-Frill Accounts opened : 249575
 No. of SHGs linked : 35565
 No. of BC Outlets : 79
 Business Facilitators (As on 30/09/2008) : 76

15 STATE BANK OF INDIA

 SBI TINY Card report for Hilly, North East & Backward regions
State District SBI TINY Card
(As on 11.02.2009) Enrollments
Himachal Pradesh Una 6766
Meghalaya West Garo Hills 6,646
Mizoram Aizwal 3,038
Assam Jorhat (Titabar) 13,229
Darang Dist., Assam 1,832
(Drishtee)
Uttaranchal Chamoli 4,665
Pauri 4,981
Pithoragarh 10,700
Chhatisgarh Raipur 892
Jharkhand Hazaribaug 8,080
Dhanbad 5,682

16 STATE BANK OF INDIA

 SBI TINY Card report for Hilly, North East & Backward regions
State District SBI TINY Card
(As on 11.02.2009) Enrollments
Rajasthan Alwar 2,390
Jaipur 2,010
Jodhpur 2,043
Dausa 11
West Bengal Nadia 10544
Hugli 196
Dakshin Dinajpur 432
Murshidabad 187
North 24 Parganas 806
Nadia Dist. (Shree 2769
Sanchari)

Total Districts - 21
Total SBI Tiny Card Enrollments -
87,899

17 STATE BANK OF INDIA

 WAY FORWARD : VISION - MARCH 2012

 No. of unbanked villages to be covered : 1 lakh

 Customer base to increase by 4 crores

 No. of rural branches to go up to 10,000

 No. of ATMs in rural areas to go up to 6,000

 Focussed shift towards smart cards, mobile banking,

internet banking & kiosk banking platforms.

 Micro insurance & micro mutual funds to provide a complete

basket of services.

18 STATE BANK OF INDIA

 THANKYOU

19 STATE BANK OF INDIA