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Andhra Pradesh Smart Card Project

Andhra Pradesh Smart Card Project. Presentation for “Enhancing delivery of G2P payments”. R. Subrahmanyam, I.A.S. Principal Secretary to the Government Rural Development Department Andhra Pradesh. Why the project?. Instances of impersonation in MGNREGS Role of middlemen – leakages

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Andhra Pradesh Smart Card Project

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  1. Andhra Pradesh Smart Card Project Presentation for “Enhancing delivery of G2P payments” R. Subrahmanyam, I.A.S. Principal Secretary to the Government Rural Development Department Andhra Pradesh

  2. Why the project? • Instances of impersonation in MGNREGS • Role of middlemen – leakages • Delays in payment • Need to reach payment to • Right person • Right time • Right place

  3. Principles • Direct electronic transfer of funds into bank a/c • Payment only after biometric authentication • Payment in the village • Track movement of cash till the end beneficiary • Capture delays, fix accountability and penalise • Pay service charges to Banks for the service

  4. Process • Every village adopted by Bank or Post Office – BC • Bank/Post Office appointed a Tech Service Provider • All beneficiaries’ biometrics captured in the village • Bank/Post Office account opened for each • CSP appointed; equipped in each village • Direct cash transfer into the bank accounts • CSP paid after biometric authentication.

  5. Smart Card Payments -Process Flow 5

  6. Biometric Technology Receipt Generation Slot Image Slot to capture thumb print Arrow Key for starting the device Template 11001000… F button AXIS BANK Slot to insert Operator / Customer card BLC-00-00389-01 MEKALA NARAYANAMMA DoB: 05-AUG-1965 D/o. Guntala Lingaiah VILLAGE: DOMA MANDAL: ACHAMPET 6

  7. A. P. Model of EBT • BANK Model in 75% of GPs • Pilot in 6 mandals by 6 banks • Service Area Approach tried in 6 districts without success • One District-One Bank Model in 16 districts • 10 Banks, 8 TSPs, 8 BCs • Local SHG Woman as CSP in every GP • Post Office Model: 2 full & 7 part districts: 25% of GPs • AP Online only provides hardware & software services • Post Office acts as Bank-BC-CSP • Local SHG Woman as franchisee in GPs without BPO.

  8. Progress MCC-1100 DCC-324 Banks-10 Post Office TSPs-8 BCs-8 Wage seekers-109 Lakhs Pensioners-72 Lakhs CSPs-20719 BPMs-3480 Wages Amount-2163 Cr Transactions-4.5 Cr Wages Amount-4255 Cr Transactions-10 Cr Since Inception FY 2012-13 SSP Amount-1371 Cr Transactions-72 Lakhs SSP Amount-3156 Cr Transactions-72 Lakhs GOAP-RDD

  9. ACHIEVEMENTS • MGNREGA Wages & Social Security Pensions covered • Enrolments started in 95% GPs • Payments started in 80% GPs • Over Rs.7,400 crores paid since 2007 • During FY 2012-13, Rs.3,400 crores paid out till October-12. • System well-received by people: • 40% paid in 7 days, 65% in 14 days.

  10. STRENGHS • End to end Transaction-based MIS. • Electronic Fund Management System • CSP- local SHG Woman • Smart Card Wing headed by Additional Commissioner. • EBT Coordinator at district level • MIS: Disbursement delay analysis • Compensation System for delayed payments • Monthly Review Meetings at State, District & Mandal levels. • Server to Server transmission of epayorders & disbursement data.

  11. Bottlenecks & Constraints • Lack of faith in Financial Inclusion as profitable business • Absence of FI-EBT Vertical: No full time officers • Technology not inter-operable: • Bank tied to TSP-BC • Customer tied to Bank-BC-CSP • Change of Bank-TSP leads to reenrolment • Enrolment by Multiple Agencies • No unique database • Never-ending enrolments • Carding delays • Absence of Market Research • Services not rolled out & inadequate Business Models • CSP paid poorly.

  12. CHALLENGES • Never-ending enrolment • Banks not appointing exclusive officers • Delays in Payments: 35% beyond 14 days. • Cash Management: district to GP • Power-cuts during daytime • Areas with poor or no GPRS Connectivity

  13. WAY FORWARD FOR EBT • National Authority for Enrolment and Storage of Unique Biometric Data – link with Aadhaar • Deduplication of biometric data available • Online authentication Service as a Public Utility. • Solar powered Micro ATMs in all villages connected through GPRS • Inter-operable technology platform for Financial Inclusion • Multiple Agencies- Choice to Customer • Multiple services & less Cash regime

  14. Way forward • Banks to focus: • Develop business models • Cash Management at local bank branches • Post office in CBS with 150,000 offices • National Law for regulation of EBT • Punishments for delays – holding of cash • Protection against profiling of customer/citizen

  15. THANK YOU

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