eOdisha Summit 2014 - Financial Inclusion... - S K Kale, CGM, National Bank for Agriculture...

FINANCIAL INCLUSION

INNOVATIONS AND INITIATIVES

ABOUT NABARD

• NABARD ESTABLISHED IN 1982 BY AN ACT

OF PARLIAMENT

• PUSHING RURAL ECONOMY

– AUGMENTING RURAL CREDIT FLOW

– SUPPORTING AND SUPERVISING RFIs

– DEVELOPMENTAL AND PROMOTIONAL ROLE

FINANCIAL INCLUSION

INCLUSIVE GROWTH

• NATIONAL PRIORITY

• 12 TH PLAN THEME

• FINANCIAL INCLUSION MEANS TO

INCLUSIVE GROWTH

FINANCIAL INCLUSION DEFINED

• “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.” --- C Rangarajan

FINANCIAL INCLUSIONI IN INDIA - STATISTICS

• WORLD BANK ( 2012) FINDEX SURVEY – 35 % ADULTS HAVE ACCESS TO FORMAL BANK ACCOUNT

• 2% ADULT USE THEM FOR REMITTANCE• 4% USE THEM FOR GOVT. PAYMENTS• 56 % RURAL HOUSEHOLDS EXCLUDED• 42.3 % POLPULATION DO NOT AVAIL BANKING

SERVICES• 51.4% of 89.3 MILLION FARMER HOUSEHOLDS ARE

EXCLUDED FROM BOTH FORMAL/INFORMAL SOURCES

• 66% MARGINAL FARMER HOUSEHOLD EXCLUDED

FINANCIAL INCLUSION – STEPS TAKEN

• NEED FOR TAKING BANKING, INSURANCE, PENSION AND REMITTANCE FACILITY TO UNREACHED.

• TO COVER THE UNBANKED VILLAGES WITH A BANKING OUTLET– BRICK AND MORTAR BRANCH– BC/BCA– OTHER MODE– ALLOCATION OF VILLAGES BY SLBC

• POPULATION >2000 ( 1877 IN ODISHA COVERED) • POLPULATION < 2000

– 45778 IN ODISHA TO BE COVERED BY 2015

– 1870 OF TARGET 19774 COVERED AS ON 30 SEPT 2013

FINANCIAL INCLUSION – STEPS BEING TAKEN

• SELF TARGET OF BANKS IN FORM OF FIP • MONITORING OF FIP BY RBI/NABARD• ALL BANKS INCLUDING DCCBS TO

MIGRATE TO CBS PLATFORM• KCC IN THE FORM OF RUPAY KCC

CARDS• NO. OF PAYMENT OUTLETS INCREASED• MOBILE TELEPHONY USED FOR

REMITTANCE.

FI MODELS IN INDIA

• FINANCIAL INCLUSION AIMED AT CONNECTING PEOPLE TO MAINSTREAM FINANCIAL INSTITUTIONS

• ROAD MAP FOR BANKING SERVICES IN A STRUCTURED WAY

• LEVERAGING ON TECHNOLOGY• OTHER INTERMEDIARIES AND

TECHNOLOGY PARTNER WITH BANKS

• ICT BASED MODEL : SMART CARD

• KIOSK BASED BANKING

• MOBILE BANKING

FI MODELS IN INDIA

FINANCIAL INCLUSION IN ODISHA – PROGRESS AS ON 30 SEPTEMBER 2013

• 219 BRANCHES OPENED IN FIP VILLAGES• 3443 BCs IN FIP VILLAGES• 95 LAKHS BSBDAs OPENED• 13.3 LAKHS FARMERS PROVIDED WITH

KCC• 1.3 LAKHS PROVIDED WITH GCCs• 8.9 LAKH TRANSACTIONS THROUGH BC-

ICT SOLUTIONS

INITIATIVES OF NABARD IN FINANCIAL INCLUSION

• SPECIAL ATTENTION TO BOTH FINANCIAL INCLUSION AND FINANCIAL LITERACY

• MANAGES TWO FUNDS W.E.F 2007-8– FINANCIAL INCLUSION FUND

• COST OF DEVELOPMENTAL AND PROMOTIONAL INTERVENTIONS

– FINANCIAL INCLUSION TECHNOLOGY FUND• COST OF TECHNOLOGY ADOPTION FOR FINANCIAL

INCLUSION

– CHAIRMAN OF ADVISORY BOARD TO RENDER POLICY FOR MGMT OF THE FUNDS

INITIATIVES OF NABARD IN FINANCIAL INCLUSION

• INITIATIVES ON BOTH ‘SUPPLY’ AND ‘DEMAND’ SIDE

• DEMAND SIDE INITIATIVES– EDUCATION AND LITERACY INITIATIVES– PARTNER WITH BANKS, GOVT. AND NGOs– USE OF MEDIA

INITIATIVES OF NABARD IN FINANCIAL INCLUSION

• SUPPLY SIDE INITIATIVES– FOR ACHIEVING FINANCIAL INCLUSION, USE

OF TECHNOLOGY IS MAIN FACTOR

– SUPPORTS CORE BANKING SOLUTIONS FOR WEAK RRBS -Rs 27.50 CRORES ( ALL ERSWHILE RRBs EXCEPT RUSIKULYA GB)

– SUPPORTS ICT SOLUTIONS FOR RRBS – Rs 5.38 CRORES ( ERSTWHILE BAITARANI,UTKAL, KALINGA)

– SUPPORTS ATMS OF DCCBs

– SUPPORTS MOBILE VANS ( BAITARANI GB)

INITIATIVES OF NABARD

• TRAINING STATE LEVEL TRAINERS AND DISTRICT LEVEL TRAINERS FOR TRAINING BC/BCA

• TRG TO RRB AND DCCB PERSONNEL ON FI• ASSISTANCE TO DCCBs AND RRBS FOR 68

FLCS. 64 AT BLOCK LEVEL AND 4 AT DISTRICT LEVEL SO FAR

• SPU-KCC. ENCOURAGE RRBs AND COOPERATIVE BANKS TO ISSUE RUPAY/KCC DEBIT CARDS.

INITIATIVES OF NABARD

• FINANCIAL LITERACY THROUGH AUDIO-VISUAL MEDIUM- SAMBHAB

• FI MESSAGES THROUGH AIR, BIG FM AND TV CHANNELS

• FINANCIAL LITERACY CAMPAIGNS THROUGH STREET PLAYS, DASKATHIA, PUPPET SHOWS, PALA ETC. MORE THAN 1200 PROGRAMMES DURING LAST 3 YEARS

• FINANCIAL MESSAGES THROUGH WALL PAINTINGS IN VILLAGES

• VARIOUS PROGRAMMESS THROUGH DDMS• BOOKS, PAMPHLETS, CALENDARS AND FLIP

CHARTS WITH FI MESSAGES

ISSUES IN FINANCIAL INCLUSION

• UNVIABILITY OF BC MODEL

• ATTRITION OF BCs

• TECHNOLOGY SERVICE PROVIDERS

• OPENING OF BANKING OUTLETS AS PER SLBC

NOT BEING ADHERED TO

• INVESTMENT IN HUMAN DEVELOPMENT

AFTER IMPLEMENTATION OF CBS IN DCCBs

• SUPPORT TO FLCS BY THEIR PARENT BANK

ISSUES IN FINANCIAL INCLUSION

• LACK OF AWARENESS AMONGST PUBLIC

• COORDINATED APPROACH FOR FINANCIAL

LITERACY

• OPENING OF ACCOUNTS TO BE FOLLOWED BY

OTHER SERVICES TO ARREST DORMANCY

• SUITABILITY OF PRODUCTS FOR CLIENTS

• FINANCIAL SERVICES LIKE REMITTANCE,

INSURANCE AND PENSION TO BE PUSHED

THANK YOU