AISECT Financial Inclusion Model for rural India

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Registration Name : eINDIA2011/AN/124
Project Category : eGov::Best ICT in Financial Inclusion Initiative of the year
Project Name : AISECT Financial Inclusion Model for rural India

Details of Applicant :
Name : Santosh Choubey
Address : SCOPE Campus, NH-12, Bhaironpur, Near Misrod, Hoshangabad Road
City : Bhopal
State : Madhya Pradesh
Country : INDIA
Zip Code : 462026

Details of Project/Implementing Agency :
Name of Organisation : AISECT
Address : SCOPE Campus, ,NH-12, Bhaironpur, Near Misrod,,Hoshangabad Road
City : Bhopal
State : Madhya Pradesh
Country : INDIA
Zip Code : 462026
Name of the head of Organisation : Mr. Santosh K Choubey
Website : www.aisect.org

Brief description of the programme/project/Initiative :
AISECT, which has partnered with the Government for setting up 2926 Common Service Centers (CSCs) in M.P, 1487 in Chhattisgarh and 585 in Punjab, currently works as a Business Correspondent (BC) as well as a Business Facilitator (BF) for SBI in the CSC districts but is fast expanding across its widespread network of IT training and services centers. Under the Financial Inclusion Scheme, AISECT is extending hassle-free savings, loan facilities and other banking services at an affordable cost to the under privileged and unbanked population through business correspondent and business facilitator model. Services offered by the company as an SBI BF include New Account Opening, Loan for House Repairing, Loan for Self Employment, Loan for Dairy Units, Loan for 2/4 Wheeler, Deposit in NHC and Kisan Credit Card. Services delivered by AISECT Centers acting as BCs include account opening in CSC Kiosk, Deposit/Withdrawal in Account and Micro Finance.

Why was the project started :
The financial inclusion initiative is in sync with AISECT’s endeavors over the last 26 years to empower people in semi-urban and rural India through IT-based training and services. The organization, which has a network of over 8500 centers across the country at District and Block levels, has been involved in various skill development and capacity building initiatives of the Central and State Governments and the prestigious CSC project is the latest project that AISECT has got associated with.

Objective :
To provide comprehensive financial services to the underprivileged encompassing savings, credit and other financial services in a cost effective manner particularly in untapped/unbanked areas
Target group : Underprivileged and unbanked population
Geographical reach : Madhya Pradesh, Chhattisgarh and Punjab
Date from which the project became operational : 22 June 2009
Is the Project still operational : YES

10 points that make the programme/project innovative?

  1. AISECT is already a leading Education & Training player with strong inroads in rural and semi urban India, adding Financial Inclusion Services to the portfolio makes the model more efficient.
  2. Under business facilitator model, conducting only non financial business activities i.e. no cash transaction/handling
  3. Collection and preliminary processing of loan application/account opening forms and verification of primary information/data. Assisting in post sanction monitoring and follow up for recovery
  4. Identification of potential customers and activities and creating awareness about savings and other products
  5. Term deposits of minimum 6 months tenure will be sourced
  6. In addition to the activities listed above the business correspondent will be sourcing no frill accounts under smart card
  7. Collection and payment of small value deposits and withdrawals not exceeding Rs. 10,000/-
  8. Payment of disbursed small value loans not exceeding Rs. 10,000/- in each case
  9. Receipt and delivery of small value remittances not exceeding Rs. 10,000/- in each case
  10. Furnishing of mini account statements and other account information

List the 5 achievements of the programme/project?

  1. 431 Rural/Urban Banking Kiosks have been installed and two Mobile Vans, fitted with ATM and Kiosk banking mechanisms, are in operation in rural areas.
  2. 2,26,616 new customers have been created so far.
  3. Transactions worth Rs. 63.82 Crores have been put through and reach directly to the ultimate beneficiary.
  4. BC commission of Rs. 82.17 Lac has been earned so far by AISECT Village Level Entrepreneurs (VLEs) as part of the Financial Inclusion Scheme, a huge source of additional family income.
  5. Transactions of Rs. 14.95 Crores have taken place under the remittance business.

List the 5 key challenges faced while implementing the programme/project/initiative :

  1. Motivating the VLE for taking up Kiosk Banking
  2. Making VLE aware of the timely settlement of funds
  3. Kiosk Banking site often facing technical problems
  4. Poor Internet connectivity in the target regions
  5. Poor awareness among the community, VLEs have been trained and are being counseled regularly to keep pace with the changes. A close liaison is being maintained with the Kiosk Banking authority at SBI for removal of technical snags on the site and BSNL authorities for better connectivity. Also massive awareness generation programs are being undertaken to ensure that the community at large develops an understanding of the various financial products and their advantages.

List the 5 points how can the programme serve as a model that can be replicated or adapted by others?

  1. Quick settlement of funds
  2. Quick release of BC commission
  3. Ensuring better connectivity
  4. Ensuring trouble free running of Kiosk Banking site
  5. Periodical training of VLEs

List 5 points to elaborate on the scalability of the programme/project/initiative :

  1. Government of India is considering converting CSCs into banking Kiosk to pave way for 100% Financial Inclusion.
  2. We have 2926 CSCs in Madhya Pradesh, 1487 in Chhattisgarh and 585 in Punjab. If these CSCs are converted into Banking Kiosk as per Government new guidelines, we will have around 5,000 Banking Kiosks.
  3. The villages having population of less than 1,000 are being brought in the preview of financial Inclusion and this step will further enhance the prospects of 100% Financial Inclusion.
  4. The inter-bank operatability is under active consideration of the Government and, when introduced, it will enhance the prospects further.
  5. Financial Inclusion is the next biggest tool after education for ensuring rural empowerment.
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11 Responses to AISECT Financial Inclusion Model for rural India

  1. Ayushi Mukherjee says:

    All the best!

  2. Anurag Gupta says:

    Excellent Work

  3. ABHISHEK SHRIVASTAVA says:

    GOOD JOB

  4. manoj yadav says:

    i pray aisect win this award

  5. ravindra kumar mourya says:

    all the best

  6. RAM KISHUN BHARADWAJ says:

    Excellent work

  7. yogesh tiwari says:

    good work