WSIS Project Prizes 2013 – C7 E-government. Project SAKSHAM - ICT enabled Direct Old Age Pension Distribution (Network for Information and Computer Technology, Indore, Republic of

WSIS FORUM 2013 GENEVA 13-17TH MAY 2013

INDIA

Project

SAKSHAM

Direct Old Age Pension Distribution

Through ICT Kiosk Banking

Category – C7. ICT Applications : e-Government

MUKESH HAJELACEO

Network for Information and Computer Technology (NICT) [email protected]

Fighting poverty with Dignity and Confidence

Stakeholder

Indore Municipal Corporation


INDIA

Saksham ProjectTarget to action

• The ageing is a natural LIFE PROCESS, person become economically

inactive.

• Livelihood of those who work on daily wage, as agro, construction

and as other labor it becomes more difficult.

• The families Below Poverty Line (BPL), paints the horror livelihood

scenario in urban & rural area.

• With growing economy, people are migrating for job.

• Transformation occurring in households from joint extended family

to nuclear family.

• Lead to situation where many old age people left in villages and

urban areas without family support.

• Living alone with spouses (UNFP STUDY).


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• These old age people are leaving in extreme poverty conditions.

• 70% of elderly population of BPL category (Below Poverty Line) is illiterate and have lost their earning capacity as they were productive labor in their captive years.

• According to the report brought jointly by (UNFPA) United Nation Population Fund and Help Age India. India have 100 million (10 crore) elder population at present and number is expected to increase to 320 million (32 crore) upto 2050.

• Addressing the concerns, Government of India has adopted National Social Assistance Program (NSAP) in 1995 which includes National Old Age Pension Scheme (NOAPS) with other two scheme viz. – National Family Benefit Scheme (NFBS) &– National Maternity Benefit Scheme (NMBS)


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• Inspite of steps taken by the Government, providing old age pension there is a need to create age friendly and affordable services for them.

• Senior citizens are the reservoir of knowledge, experience and the pedia of growing society which help in development of communities.

• May they have physical limitation but they can always contribute and mentor the socio-economic growth.

• Provide they shall be given opportunity and space respectfully in the community, they live.

• It’s not that population and people discard “Senior Citizens” but it is there economic condition and constrains because of which they find them in “Not Possible” to manage situation.


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• Hardship continues due to inter-mediatories, illiteracy, lack of awareness and loose system of monitoring and control and the lack of extension of financial services to poor due to less number of Bank Branches and Reach of poor to the Bank.

• This creates a situation which is not aliening with the millennium development goals we can not accomplish the developmental goals if almost 10 to 15% population is striving for livelihood been in old age.

• NICT working in the area of ICT for Development in alignment with common vision of WSIS forum initiated a project Saksham, to address the issue.

• Harnessing the potential of information and communication technology and by coordinating the synergies of available Govt. policy frame work.

• Project Saksham has created a conducive environment with the stake holders where the old age people can get their minimum support pension hassle free.


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• NICT in association with Local Urban Body (LUB), Municipal Corporation of Indore and Bank of India a leading nationalized bank under the leadership of Hon’ble Mayor Mr. Krishna Murari Moghe and Incharge of Mahila Evam Bal Kalyan Smt. Padma Bhoje decided to implement the scheme through bank revamping the Govt. process to ICT enable process to limit the leakage and ensure that the benefit reaches to the beneficiaries.

• Challenges – The reach of Bank Branch – Account Opening of these Senior Citizen who have crisis

of the KYC to open a account in Bank – Limited staff at Bank to take care of large number of low

value accounts.


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The Organogram The three stake holders Bank of India, Municipal Corporation Indore and NICT come together committing themselves for sustainable inclusive development bringing their expertise and domain together for catering the special needs for development of marginalized and vulnerable groups of society empowering them to liberate from extreme poverty.

By introducing and implementing new e-government process distribution of old age pension.

Kiosk Bank

Indore Municip

al Corpora

tion

NICTBank

of India

Citizen


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The KIOSK Bank –

• The Kiosk is Ultra Small Branch of Bank.

• Bank authorized NICT as Business Correspondent (a Agency which will establish, operate the single window branch) with ICT Setup linked with the bank Branch of the area.

• The Beneficiary from poor and Below Poverty Line were allowed to open Bank Account with relaxed KYC norms and with Zero Balance (No Frill Account)

(Ref.: Govt. and reserve bank of India reform for financial inclusion)


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Kiosk

A/c opening• Physical form & KYC• Biometric capture &

Data Entry

ID card for A/c holder

server

Biometric enrollment & data entry

Creati

on of

Bank A

/c

Submission of physical a/c form’s

& KYC

Approval of A/c

Bank of India Linked Branch

situated nearby 20-30 km from kiosk

Account Opening Process at Kiosk

Biometric authentication


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Kiosk

Request for financial transaction • Deposit• Withdrawal

• Money given to a/c holder

Or• Money taken

from a/c holder

Perform check’s & permit financial transactionOnline

Updated a/

c

state

ment

server

Process at Kiosk

Link Bank of AreaCore

Bankin

g software

Online Internet Linkage

MIS Monitoring Control

NICT Head Office

Remittance of old age pension at kiosk


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The 2E Mission of NICT on one side addresses the socio-economic crisis for old age population on other hand it provides Employment to local youth as social entrepreneur.

Social EntrepreneurA eco system with handholding capacity building and training has been created with the group of unemployed local youth who will act as a kiosk operator earns the livelihood and employment through banking transaction commission on every remittance he makes and every account he opens.

This social enterprise network of kiosk in the local area enables the reach of bank to unreached population.

15 such social entrepreneurs are trained in initial phase out of which 7 are women entrepreneurs.

2E Mission makes it happening -Employment & Empowerment


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NICT BOI Old Age Pension Kiosk - As on 30/04/2013Kosk Branch Amount Disbursed Accounts OpenedKila Maidan 305217 650Rajmohalla 588531 623Shantipath 541000 770

Sangam nagar 438074 904Sukhliya 662160 1458

Subhashnagar 922480 1287Sch. No.54 217002 1011Vijaynagar 206599 398

Pancham ki Phel 372428 1079Saket Nagar 230115 504

Stadium 421470 1471Harsiddhi 754201 815Bilawali 434229 974

Hawabanglow 60350 387Dravidnagar 533401 733

Total 6687257 13064

13064 Old age people were benefited with the scheme and the figure is increasing every day.

INR 60 million approx has been disbursed directly to the beneficiaries without any discrepancy. Delay & leakage is system been ICT enabled.

Providing better livelihood and employment.

Target is to cover all 60,000 listed Old Age Citizen in Indore Municipal Corporation Area by the end of the year.

Coverage and Out reach


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Impact• The NICT, Bank of India and Municipal corporation

ICT enabled kiosk bank project sakhsam bring empowerment with Smile, Dignity, confidence, Respect with monthly income.

• Though amount is small INR 300 approx. ($5.53 ) but proves useful in terms of less dependency and relives them from worries of daily existence in old age.

• It play a vital role in eradication of extreme poverty conditions contributing towards the creation of inclusive society with better livelihood for vulnerable groups and create employment opportunities for the local youth.


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Way forward and Scaling up• The project has scaled up to remote villages and NICT with other banks

coming up with Business Correspondent scaling up the project PAN India.

• At present 700 such rural business correspondent kiosk branches are developed in rural areas by NICT manned by local village unemployed youth providing services to more than 300 thousand population disbursing various social benefit schemes amount directly to the beneficiary like Jannay Surakha Yojna, Scholarship, old age pension, grants for cycle and uniform eliminating intermediaries procedure delays and outreach challenges.

OutcomeThe information Communication Technology has proven to be one of the key technologies which makes direct impact on better livelihood of human being. It contributes towards the development of sustainable inclusive society and thus, it can be said that ICT is a techno-socio-economic phenomenon.

Bank KioskGovernment Bank

Remittance Demand

Service at door step Senior Citizen

Online

Core Banking Software

Economy & Finance

WSIS Project Prizes 2013 – C7 E-government. Project SAKSHAM - ICT enabled Direct Old Age Pension Distribution (Network for Information and Computer Technology, Indore, Republic of