Business Correspondent Agents for Direct Cash Transfers in the State of Andhra Pradesh

The Government of India has formulated a National e-Governance Plan with the vision of providing all Government Services in an integrated manner at the doorstep of the citizen at an affordable cost. Equal access to financial services including Banking, Insurance, Pension are the driving forces of economic growth and social development for any country. Over 60% of India’s population lacks bank accounts, due to limited penetration of bank branches and stringent policy requirements.

Financial inclusion is important as it provides an avenue for the poor to bring their savings into the formal financial system, an avenue to remit money to their families in villages and weaning them away from the clutches of the usurious money lenders.

Mee seva Direct Cash Transfers in the State of Andhra Pradesh

The Government of India has taken a number of proactive steps to ensure equitable access to financial services. On 26th November, 2012, it was announced that, direct benefits like pensions, scholarships, healthcare benefits and subsidies must reach the intended beneficiaries without delays and leakages, directly into the bank of account of beneficiary.

One lakh Common Service Centers (CSC) are being established across the country under National e-Governance Plan to deliver online services primarily in rural areas. Of which 5200 CSCs are operational in the State of Andhra Pradesh as Mee Seva centers as one of the World’s largest Government approved ICT enabled network, the CSCs network is ideally positioned to strengthen India’s banking network by extending the Business Correspondent Network. CSC Network can be leveraged to help India achieve its financial inclusion objectives like Banking (Online real-time Banking, Credit/ KCC/ Loans, NPAs etc), Insurance (Policy sale, Premium Collection, Policy Delivery, Grievance Redressal etc) Government Remittances (MGNREGs, Pension, Scholarship, Subsidy etc.,), Financial Literacy (Training VLEs, Financial Literacy Courses, Partnership with NABARD etc.,) .

As per the decision of the Department of Financial Services, all CSCs would be activated as Business Correspondent Agents to ensure that all Gram Panchayats have a BC Agent. CSCs in the 51 districts all over India selected, for the first round of the direct cash transfer scheme implementation are proposed to be activated by December 31st 2012. To ensure that necessary infrastructure is in place well in time, 18 public sectors banks have signed agreements with the CSC eGovernance Services India Limited – CSC SPV (Special Purpose Vehicle of the Common Services Centre
been directed to monitor the progress of CSCs being activated as BC Agents on a weekly basis.

Further, Government of India requested the State to set up the State level committee to monitor the progress at State levels.

Accordingly, Government of Andhra Pradesh hereby constitutes a State level Committee as a sub-committee of State Level Bankers’ Committee with the following composition to coordinate and monitor the progress of the activation of CSCs as BC Agents. :

1. Principal Secretary/Secretary to Government, Finance Department Member

2. Principal Secretary to Government, Rural Development Department Member
3. Secretary to Government, IT&C Department Member

4. Representative of the CSC SPV Member

5. Representative of State Level Banker’s Committee Member-Secretary/ Convener

8. Scope of Work:

The scope of work of this Committee would involve the monitoring of the implementation process in particular the progress made in:
I. Mapping of CSCs with gram panchayats allocated to various banks as per bank’s service area
II. Approval of CSC by Banks for appointment as BCA and BCA Code allocation
III. Opening of Settlement account by VLE.
IV. Procurement of biometric device.
V. Training of SCA/VLEs by bank to launch banking services.
VI. Installation of kiosk banking solution and activation of CSCs to render services.
VII. Finalize the procedural modalities and implementation plan with concerned banks and SCAs.

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