E-shakti Bihar

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Registration Name : eINDIA2011/AN/109
Project Category : eGov::Best ICT in Financial Inclusion Initiative of the year
Project Name : E-shakti Bihar

Details of Applicant :
Name : Vaibhav Joshi
Address : c/03, Fortune 2000, Bandra Kurla Complex, Bandra East
City : Mumbai
State : Maharashtra
Country : INDIA
Zip Code : 400051

Details of Project/Implementing Agency :
Name of Organisation : Glodyne Technoserve thorough its subsidary Smaarftech Limited
Address : A.G Place, 538 & 538-A , East Boring canal Road,Patna,
City : Patna
State : Bihar
Country : INDIA
Zip Code : 800001
Name of the head of Organisation : Binod Mishra
Website : www.glodyne.com

Brief description of the programme/project/Initiative :
‘e-Shakti’ is the project that is going to cater to the need of the implementation of the MNREGA with having ICT interventions Financial Inclusion (FI) is integral Part of project ‘e-Shakti’, an ambitious, project started by Department of Rural Development, Government of Bihar. ‘e-Shakti’ project will enhance transparency and accountability of the complete system along with reducing human interface.

Why was the project started :
The basic idea of the Financial Inclusion initiative is to extend banking services to the un-banked and under banked rural population. The rural communities that reside in remote regions were the target beneficiaries of the scheme.

Objective :
Financial Inclusion is defined as delivery of banking services at an affordable cost to the vast sections of unprivileged and low income groups living in rural parts of country. As banking services are in the nature of public good, it is essential that availability of banking and payment services to the entire population without discrimination is the prime objective of the e-Shakti Project.
Target group : MNREGA Beneficiaries
Geographical reach : Entire state of Bihar
Date from which the project became operational : 1 July 2009
Is the Project still operational : YES

10 points that make the programme/project innovative?

  1. Financial Inclusion to ensure banking & payment services to entire e-Shakti MNREGA workforce in Bihar
  2. Bank account transactions recorded on the smart card
  3. Creation of ‘No Frills’ account with zero balance
  4. Business Correspondent model for Wage disbursement where single CSP caters to 1500 Beneficiaries
  5. Wage disbursal through biometric authentication
  6. Online / Offline updation of Account details to Centralised Server
  7. Establish a programmatic paradigm wherein institutional accountability for delivery (Rural employment, Banking) gets naturally fixed, and the community /beneficiary does not have to make any extra effort to claim his /her entitlement
  8. Other than Cash Withdrawal and Deposit beneficiaries can avail for other banking services such as Recurring account, OD, Loans etc.
  9. Door step facilities to beneficiaries for cash disbursement in villages where bank branches are not available
  10. Ensure complete Non Duplication of identity by incorporating Biometric details of beneficiaries into their identity gateways (Smart Card).

List the 5 achievements of the programme/project?

  1. Close to 1 million polycarbonate smart cards each with 80 kb chip handed over directly to individual rural beneficiaries
  2. Demographic and Biometric Data of 5 million rural beneficiaries collected.
  3. More than 8 Lac accounts opened and active for MNREGA wage Disbursement
  4. Operational Data centre for Financial Inclusion software communicating with Core banking solution for Account Updates and Creation of New accounts
  5. An integrated grievance redressal mechanism with a full time 24×7 call center.

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

  1. No Banking knowledge for Rural population ** Awareness and sensitization of Banking benefits via poster , banners and road shows
  2. To undertake a green field project with the commitment to implement it on a population based scale in a low resource setting in Bihar Overcoming by ensuring that the young work force is constantly inspired to contribute at its best. By continuously encouraging community participation at various levels of program execution
  3. Imperative of working in active partnership with government machinery i.e. only trying to catch up with progressive, modern ways and standards of professionalism. Overcoming by developing and nurturing credible voices and change agents within government system to serve as the projects spokespersons and stakeholders.
  4. To negotiate local power equations (borne out of entrenched socio-political dynamics in Bihar) in a manner to suit project execution needs at local and other levels has been a tactical challenge Overcoming by constantly emphasizing and regularly showcasing the component of collective empowerment of the community at large (as against individuals or groups such as a caste, etc.)
  5. Integration of diverse stakeholder nodes at various levels (like the government departments, banks, local functionaries, communities, etc.) into a programme framework optimized for time-bound delivery Overcoming by focusing on maintaining a team that is professionally committed, skilled and has requisite passion to undertake complex assignments

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

  1. Ensure resource effectiveness of the project by especially showcasing the long term social benefits of investing in accountable and responsive systems of delivery
  2. UIDAI of the government of India opted e-Shakti to provide the prestigious Proof of Concept for Aadhaar in India
  3. Currently the Project is catering to MNREGA Beneficiaries, similarly many other social benefit schemes can be attached
  4. Having executed such a complex project in a challenging and low-resource setting like Bihar, other better endowed states would likely feel naturally confident of undertaking such a project with much ease.
  5. Smartcard based FI can seemingly adapt to Micro ATM authentication without major changes in the process

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

  1. With the available infrastructure created by the project (in terms of database, IT platform, on-site validation of beneficiaries, etc.), any scheme of the government that is meant for rural areas can be readily integrated onto e-Shakti Financial Inclusion
  2. The fact that the government of Bihar and UIDAI has been keenly pursuing integrating UID’s Aadhaar with e-Shakti in the whole of the state is the most credible evidence of scalability of the project
  3. Financial Inclusion is a national programme, and thus the project has ready relevance in all the states
  4. Having executed such a complex project for a rural scheme like MGNREGS, the option to customize and unleash it to cater to any population based urban programme would likely be much readily achievable
  5. With a nationalized bank of repute like the Central Bank of India having partnered with the project and demonstrated its ownership by administering its entire FI chapter in the state of Bihar through e-Shakti, more banking, financial and credit institutions would likely see instant merit
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