“Financial inclusion may be defined as theprocess of ensuring access to financial servicesand timely and adequate credit where neededby vulnerable groups such as weaker sectionsand low income groups at an affordable cost.”
Financial Inclusion - Definition
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 technologythrough 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.
Delivery of services throgh Technology underbranchless modelDelivery of services throgh Technology underbranchless model
Transactions using hand held devices (POS) in villages
Customer authentication through his/ her digitals on POS
POS becomes ready for transaction by inserting/swipingthe 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 thefollowing day.
Thus Transaction cycle completes in 24 hours.
Delivery of services throgh Technologyunder branchless modelDelivery of services throgh Technologyunder branchless model
Initial deposit – with zero balance.
Balance not to exceed Rs.50000/- in allaccounts taken together.
Total credits in a/c not to exceed Rs.2 lac in ayear.
Simplified KYC procedure.
ATM Card facility allowed with nil annualcharges.
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 theassessment of cash flow without insistenceon 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 12months period should at least be equal to theamount of interest accrued in the account.
Deposit amount-Minimum Rs.5/-andmultiples of Rs.5/-
Period of deposit- Minimum 12 months to 10years
Loan Facility – Maximum 75% of the accruedamount of deposit.
Nomination facility available.
Penalty for delay in installment & PrematureClosure – Nil
Interest – Quarterly compounding
Deposit
Portfolio
•Creating Awareness
•Enrolment - no frill a/c
•KYC compliance
•Receipts/ Payments
•Opening of RD Acs
Credit
Portfolio
•Overdraft in No-frill Acs
•Collecting loan proposal
•Small loan disbursement
•SHG/ JLG formation
MiscellaneousServices
•House hold survey
•Recovery
•Remittance/ microinsurance
Survey of allotted villages.
Display Map of the villages allotted along withdistance 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 forextending 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 everyeligible households.
Ensure KYC compliance.
Extend full support & co-operation to BC.
Motivate villagers for small savings and recovery ofloan.
Issue Pass Books to FIP customers.
Organization of credit camps to issue KCCs/ GCCsto all eligible farmers/ entrepreneurs.
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