Network connectivity is the primary problem facing all these banks. Dena Bank

K.C. Chhipa points out Dena Bank has cardless solution for FI transactions

has tried installing network antennas to overcome the problem and it has been successful to some extent. Gupta says in the starting phase there were obsolete hand held devices, but now these has been updated to micro ATM 1.5.1 version. Earlier, account opening through e-KYC, AEPS transactions, RuPay Card transactions were not possible. But now with the introduction of Aadhaar and micro ATM these tasks have become possible.

The second most important problem is low level of financial literacy for which all banks have been undertaking a variety
of activities. The third problem is low confidence about banking services and low awareness among the villagers on the government benefit schemes.


In order to maintain the balance in accounts and to refrain from making them inoperative, CBI has been providing financial literacy to customers through FLCCs, motivating them to retain some deposits in their accounts, making them aware of the disadvantages of inoperative accounts and motivating them to make regular transactions so that after a period of satisfactory transactions, they will be entitield for OD facility. Inoperative account disqualifies the customer from the insurance cover, says Gupta, adding through BC mode, the customers are getting services at their doorstep which also motivates them as they do not have to forgo one day’s earning because earlier they used to go to the branch to withdraw money.


Bank of Baroda offers cardless solutions for transaction at its BC points. Transactions are processed either through biometric authentication or Aadhaar based authentication online realtime. The bank has issued 1.29 million KCCs with outstanding amount of ?16,650 crore.

In Dena Bank’s case, all the transactions done at BCs locations are through biometric authentication from the bank’s own data base or UIDAI data base (AEPS transactions). Says Chhipa: “Our bank has cardless solution for FI transactions and no biometric cards are issued to customers.”

Even Central Bank of India has dispensed with biometric cards or smart cards after introduction of online transaction since last year. Gupta says as of Ql 2015-16,395 KCCs have been issued to farmers through BCs in our bank.”


Bank of Baroda has made significant progress in PMJDY. It could mobilize deposits to the tune of T1586 crore and


Financial Inclusion

14,284 overdrafts, amounting to 4421.21 lakh, have been disbursed. Bhuyan says Aadhaar seeding has taken place for over 4 million accounts and e-KYC compliant accounts are over 1.5 lakh. The number of PMJDY enrolment exceeds 1.3 million and PMSBY 3.6 million.

For Central Bank of India over 3 million accounts have been seeded with Aadhaar as on 28 September 2015 under PMJDY. Nearly 25 lakh accounts have zero balance and over 6 million passbooks have been issued. Says Gupta: “The outstanding balance in these accounts has increased to 4558.3 crore from 4449.25 crore as on 30 June 2015.


The performance of PMJDY in Bank of Baroda has been phenomenal. Over the period of 1 year, the scheme has been able to mobilize 41586 crore. According to Bhuyan, during the initial period, the entire chunk of deposit came in from only 25% of the accounts. Majority of the accounts were zero balance or inactive. However, after continuous efforts put in by the branches, only 34% accounts remain unfunded or inactive, he says. Moreover, introduction of micro insurance schemes have also contributed significantly towards funding in accounts and consequent reduction of zero balance and inactive accounts.

Due to various government-initiated financial literacy initiatives and due to the launching of social security schemes,


R.B. Gupta believes when customers get services at their doorstep, it motivates them as they do not have to forgo one day’s earning about 60% PMJDY accounts at Dena Bank have balances.

Central Bank of India has found that households having accounts in the bank have relatively more savings. Accidental insurance of 41 lakh and life insurance of 430,000 provided by RuPay debit cards are the most attractive features in this scheme. Many customers have received their claim timely. Leakages found earlier are reducing. Customers are now capable
of withdrawing money through ATMs and PoS. Gupta says customers are now getting benefit of OD facility of 45000 which is a needy help and an alternative to borrowing funds from informal sectors.


For FY 2015-16, Bank of Baroda has decided to add new corporate BCs for strengthening the BC network and upgradation of BC applications for improved performance. Bhuyan says the bank will set up 1000 new urban kiosk points and deploy 10,000 BCs during FY 2015-16.

The bank’s targets under Jandhan are to open a bank account for every individual above the age of 10 years, to grant overdraft and micro credit to every BSBD account holder and to link Aadhaar number of every account holders of bank. “We will strive hard to provide social security through micro insurance schemes to every BSBD account holder and old age security in the form of Atal Pension Scheme to take care of uncertainties in the life of deprived and under privileged citizens of the society,” says Bhuyan

Funding of zero balance accounts by customers to bring down the percentage of such accounts to 30% is one of the major targets of Dena Bank under FI initiatives. Chhipa says the bank is in the process of implementing RuPay card-based transactions and the same is expected to be completed by end of October 2015.

Central Bank of India targets FI business to be of 4175 crore and FI accounts and transactions through BC outlets to be 69 lakh and 78.7 lakh respectively. “We have targeted reduction of inoperative accounts to be 20% of accounts opened,” says Gupta

The bank has targeted Aadhaar seeding to be 70% under PMJDY. Gupta says the bank has decided to achieve 100% issuance of passbook, 100% reduction of zero balance accounts, 100% activation of RuPay cards and 100% hand held devices with micro ATM version 1.5.1

under PMJDY.

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