Shri ReddY Subramanyam - Ministry of Rural Development

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Feb 23, 2014 (3 years and 5 months ago)

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R. Subrahmanyam, I.A.S.

Principal Secretary to the Government

Rural
Development Department

Andhra Pradesh

Presentation for

“Enhancing delivery of G2P payments”

1




Instances of impersonation in MGNREGS


Role of middlemen


leakages


Delays in payment


Need to reach payment to


R
ight person


Right time


Right place



Why the project?




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


Principles




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.

Process

5

Smart Card Payments
-
Process Flow

5

6

Biometric Technology

11001000…

Image

Template

Receipt
Generation Slot

Slot to
capture
thumb print

Slot to insert
Operator /
Customer card

Arrow Key
for starting
the device

F button

6

AXIS BANK


BLC
-
00
-
00389
-
01

MEKALA
NARAYANAMMA

DoB: 05
-
AUG
-
1965

D/o. Guntala Lingaiah

VILLAGE: DOMA

MANDAL: ACHAMPET




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.





A. P. Model of EBT




Progress

MCC
-
1100

DCC
-
324

Banks
-
10

Post
Office

TSPs
-
8

BCs
-
8

Wage seekers
-
109
Lakhs

Pensioners
-
72
Lakhs

CSPs
-
20719

BPMs
-
3480

FY 2012
-
13

Wages

Amount
-
2163 Cr

Transactions
-
4.5
Cr

SSP

Amount
-
1371 Cr

Transactions
-
72
Lakhs

Since
Inceptio
n

Wages

Amount
-
4255 Cr

Transactions
-
10
Cr

SSP

Amount
-
3156 Cr

Transactions
-
72
Lakhs

GOAP
-
RDD




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.

ACHIEVEMENTS




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
.

STRENGHS




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.



Bottlenecks
& Constraints





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


CHALLENGES




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



WAY
FORWARD FOR EBT





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


Way forward



THANK YOU

15