In a first step for delivering services by using Jandhan-Aadhaar-Mobile (JAM) trinity, IDFC Bank today said it has tied up with Andhra Pradesh government for DBT schemes in the Krishna district of the state.
The delivery of services under the Direct Benefit Transfer (DBT) will be through inter-operable Aadhaar Enabled Payment System (AEPS) micro ATMs deployed in villages in Krishna to enhance last mile financial access using digitisation, IDFC Bank said in a release.
To begin with, effective May 1, Andhra Bank will deliver social security pension under the DBT.
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IDFC Bank said the programme will be extended for delivery of other government services or entitlements and then to Public Distribution System (PDS).
"It also makes IDFC Bank the first to deliver Direct Benefit Transfer like social security pensions, and in coming days, others schemes like scholarships, LPG subsidies, MGNREGA benefits, through an interoperable AEPS Micro ATM model, at scale, in a district, in a concentrated manner", IDFC Bank said.
"IDFC Bank will soon implement this model for the public distribution system (PDS) as well, making PDS payments cashless, thereby taking cashless digital banking in rural India to the next level."
IDFC Bank said nearly 32,000 pensioners will be using its micro ATM infrastructure to access benefits in coming days.
Over time, the concentrated coverage of banking services at a village level offered by IDFC Bank is expected to touch the lives of 46 lakh citizens in Krishna district alone, it said further.
The micro ATMs offer all basic banking services to customers of any bank including deposits, withdrawals and transfers, IDFC Bank said.
