In an effort to support the country’s financial inclusion programme, Financial Information Network & Operations (FINO) and NCR Corporation will jointly set up 1,000 machines that will accept small deposits. Both entities will roll out 30,000 machines named EasyPoint 70 Tijori in the next five years with an aim to cover 25 million unbanked people by 2011.
The micro deposit unit works with the support of smartcard and biometrics technology. The large scale deployment of machines will help banks and micro finance institutions (MFIs) to scale up their services.
FINO Chief Executive Officer Manish Khera said, “One of the possible means of increasing financial inclusion is through deployment of self-service technologies, which are commercially viable and can help in overcoming the hurdles previously linked with this space.”
While banks have stepped up efforts to extend their reach through branch and alliance with MFIs, there are gaps in providing services to poor even in districts that claim to have attained 100 per cent financial inclusion.
A recent Reserve Bank of India (RBI) study on the progress in 26 districts across eight states, including Andhra Pradesh and Rajasthan, revealed that the performance was short of claims. Most accounts that were opened as part of the financial inclusion drive remained inoperative for many reasons such as illiteracy and lack of interest and distance from branch.
RBI has asked banks to take steps for services nearer to the location through a variety of channels including satellite offices, mobile offices, and business correspondents. The central bank has asked banks to provide General Credit Card (GCC), or small overdrafts along with no-frills accounts, to encourage the account holders to actively operate the accounts.
The machine will support deposits and savings by low income wage earners enabling the creation of credit profile and access to micro-credit and other financial services. It will facilitate other financial and information services, including bill payment, insurance, remittance, and e-Gov services at locations such as retail outlets.
The World Bank has estimated that more than 45 per cent of the 6.5 billion world population does not have access to a formal source of banking or financial services. In India alone, it is estimated that 560 million people (about 51 per cent of India’s population) is financially underserved.