Transcript Slide 1
Financial Inclusion - Definition “Financial inclusion may be defined as the process of ensuring access to financial services and timely and adequate credit where needed by vulnerable groups such as weaker sections and low income groups at an affordable cost.” No-frill accounts OD facility in no-frill account Term Deposit/Recurring Deposit Small Credit (OGSC, OGC, GCC etc.) Insurance Remittance Use of Smart card/ bio-metric card based technology through engagement of technology service provider. Operational flow chart : Capturing customer’s personal details & AOF in soft form. Uploading customer’s master file on technology provider’s system Verification & KYC compliance by branch. Opening of account. Activation of Card for transactions. Transactions using hand held devices (POS) in villages Customer authentication through his/ her digitals on POS POS becomes ready for transaction by inserting/swiping the bio-metric card. Cash transaction carried out Transaction transmitted to BC’s server through GPRS/ TCP/ IP protocol. Day’s transactions are forwarded to bank’s server. Transaction gets reflected in respective accounts the following day. Thus Transaction cycle completes in 24 hours. Initial deposit – with zero balance. Balance not to exceed Rs.50000/- in all accounts taken together. Total credits in a/c not to exceed Rs.2 lac in a year. Simplified KYC procedure. ATM Card facility allowed with nil annual charges. Provision for over draft facility. Loan Repayment-Weekly repayment allowed Mode of disbursement- Cash disbursement Loan amount – Up to maximum Rs. 25,000/- No bill/receipt is required. Concession of 0.5% to women borrowers. No insistence on collateral security ELIGIBLE ACTIVITIES CROP PRODUCTION NEED WORKING CAPITAL FOR ALLIED ACTIVITIES REPAIRS OF MACHINERY. SMALL CONSUMPTION NEEDS Objective: To provide hassle free credit based on the assessment of cash flow without insistence on security, purpose or end use of the credit Loan Amount: Depends on cash flow of entire household Maximum limit not to exceed Rs 25,000/Repayment Aggregate credits into the account during 12 months period should at least be equal to the amount of interest accrued in the account. Deposit amount-Minimum Rs.5/-and multiples of Rs.5/Period of deposit- Minimum 12 months to 10 years Loan Facility – Maximum 75% of the accrued amount of deposit. Nomination facility available. Penalty for delay in installment & Premature Closure – Nil Interest – Quarterly compounding • Creating Awareness Deposit Portfolio • Enrolment - no frill a/c • KYC compliance • Receipts/ Payments • Opening of RD Acs • Overdraft in No-frill Acs Credit • Collecting loan proposal Portfolio • Small loan disbursement • SHG/ JLG formation • House hold survey Miscellane • Recovery ous • Remittance/ micro Services insurance Survey of allotted villages. Display Map of the villages allotted along with distance from the branch. Regular visit of allotted villages. Organization of awareness camp on FIP. Introduction of Business Correspondent Publicity on banking services to be offered Demonstration on use of Bio-metric card for extending banking services. Sanction/ disbursement of small loans. Allowing overdraft facility Ensure display of board at BC’s working place. Ensure opening of No-frill Acs to each and every eligible households. Ensure KYC compliance. Extend full support & co-operation to BC. Motivate villagers for small savings and recovery of loan. Issue Pass Books to FIP customers. Organization of credit camps to issue KCCs/ GCCs to all eligible farmers/ entrepreneurs. 16 16