In 2006 Department of
Rural Development, Government of Andhra Pradesh started a pilot
initiative to make payments of Government benefits to the
beneficiaries through Smartcards which are backed by bank accounts.
The overall objectives of the initiatives are:
Provide a operational frame work for increasing the outreach of main
stream banking and financial services to the poorest of the poor by
using technology based solutions.
Ensure efficient and timely transfer of govt. benefits to the poor.
Minimize the possibility fraudulent payments.
Ultimately to achieve Total Financial Inclusion through Smartcards.
Approach: The approach is to create branchless banking infrastructure by
establishing a network of business correspondents in each village.
Banks and Government will work together to open accounts and
issue Smartcards to the poor. To begin with, certain Government
benefits like Social security pensions and NREGS wage payments will
be delivered through this network. In the next stage, banks will
deliver main stream banking services like Savings, Deposits,
Remittances, loans etc.
The endeavor is to establish a banking out post in each
village to include the unbanked poor. Thus, it is a major step
towards Total Financial Inclusion. More...[+]