AISECT’s initiatives in providing banking and financial services to the unbanked population – AISECT

Nomination category: Financial Inclusion
Sub Category:
Access to banking and financial services
Reference No. 

Details of Programe/Project/Initiative

Brief Description Since 2009, AISECT is extending hassle-free banking services at an affordable cost to the underprivileged and unbanked population through its various Financial Inclusion initiatives in the districts of Gujarat, Rajasthan, Uttar Pradesh and in the CSC districts of MP, Chhattisgarh and Punjab. Today, the organization is working as a Business Correspondent (BC) for 26 nationalized banks including SBI and is extending services such as savings, loan facilities, account opening, money deposit/withdraw
Objective To provide comprehensive banking and financial services to the underprivileged encompassing savings, credit and other financial services in a cost effective manner particularly in unbanked areas
Target Group Underprivileged and unbanked population of MP, Chhattisgarh, Punjab, Gujarat, Rajasthan and Uttar Pradesh.
Geographical Reach within India Madhya Pradesh, Chhattisgarh, Punjab, Gujarat, Rajasthan and Uttar Pradesh.
Geographical Reach outside India NA
When did it became operational 22-6-2009
Is it still operational yes
Five points that make the Product/Programme/Project/Initiative innovative 1. Mobile vans fitted with ATM would go to the village thereby providing the unbanked population the ease of cash transactions right at their doorsteps

2. AISECT and SBI introduced in Bhopal the first ever urban banking kiosk dedicated completely to providing cash remittance to benefit the rural migrants

3. A solar-powered car equipped with a computer would go into rural India and demonstrate the functioning of the computer

4. In order to maximize reach, the existing infrastructure of an AISECT Centre is utilized for providing various services including financial inclusion services.

5. The centre owner/village entrepreneur is trained on the operations and accessibility for various financial services.

Five key achievements of the Product/Programme/Project/Initiative: 1. The organization has successfully established 1400 banking kiosks, opened more than 15 lakh bank accounts which have done transactions worth Rs. 500 crore across the CSC states.

2. Some of the Village Level Entrepreneurs (VLEs) who are offering banking facilities at their AISECT Centres earn upto Rs. 50-60,000 per month. On an average, they earn Rs. 10,000 per month.

3. The organization works as a Business Correspondent (BC) for 26 nationalized banks including the State Bank of India and is a scalable and sustainable venture.

4. Completely risk free operations right from the customer acquisition in rural areas to services urban poor/ migrants. Risks are mitigated using variety of measures in the entire value chain.

5. In 2011, AISECT won the eminent e-Gov India 2011 Award as the Best ICT in Financial Inclusion initiatives and also Manthan Award 2012 for the category E-Financial Inclusion & Livelihood.

Five key challenges faced while implementing the Product/Programme/Project/Initiative and how they were overcome 1. Motivating the VLE for taking up Kiosk Banking. Counseling programs for VLEs about how the kiosks would help every villager receive easy banking facilities.

2. Making VLE aware of the timely settlement of funds. Training workshops held to make VLEs aware of timely settlement of funds.

3. Kiosk Banking site often facing technical problems.Close liaison maintained with the Kiosk Banking authority at SBI for removal of technical snags on the site and BSNL authorities for better connectiv

4. Poor Internet connectivity in the target regions. Switching to a flexible schedule of centres’ timings.

5. Poor awareness among the community. Massive awareness generation programs undertaken to ensure that the community develops an understanding of financial products and their advantages

Five points that make the Product/Programme/Project/Initiative replicable: 1. Self sustainable business model

2. Huge demand in rural India for Financial inclusion services

3. Operational back bone already in place making additional kiosks plug and play.

4. Field force already in place to open multiple kiosks

5. Existing push from the government and banks helps the entire ecosystem.

Five points to elaborate on the scalability of the Product/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 guidelines, we will have around 6,000 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.