Financial Inclusion

2

Indian Demographics Population demographics

APL (71%)

BPL(29%)BPL (29%)

2015

29.2%

65.3%

5.4%

65+ year15-64 year0-14 year

Mobile subscriber penetration has reached 80% of population

970mn Aadhaar card holders in India(Unique identification)

Various pension schemes and host of government services linked to Aadhaar

Total population of India-1250mn

3

Financial Inclusion schemes launched by Government of India recently

Jan-Dhan yojana No. of accounts

opened:190mn primarily led by public sector banks

Universal access to banking Initiative to move towards

cashless economy Channelling all government

benefits to beneficiaries accounts

PMJDY PMSBY Personal accident cover of

$2985 Age group:18 to 70 years Premium: $0.17 Premium collected through

facility of “auto-debit” from bank

Accidental Insurance worth $2985 atat just $0.17 per annum

4 4

Aadhaar is Unique ID allotted to citizen of India and valid form of KYC

Features Paperless Consent based Eliminates Document

Forgery Secure and compliant

with the IT Act Low cost

Aadhaar issued to 77% of Indian population

Unique ID scheme

 

5

RSBY – Smart card based Health Insurance

RSBY Scheme National Health Benefit Scheme BPL families eligible for this

government scheme Family of 5 eligible for health

insurance worth $ 447 per annum

Benefits Cashless and Paperless Low Premium Payment $ 0.4 per family Beneficiary can get treatment from

any of the empanelled public or private hospitals, across India

Secure and Foolproof Over The Counter

6

Cards issued – App. 40 mn People enrolled – App. 126 mn Number of People benefitted till

now – 10.6 mn Number of Hospitals Empanelled

– 10666 States where Service delivery

has started – 29 Number of Insurance Companies

Involved – 16

Current status : RSBY in India

7

Enrolment Process through Images

Enrollment stations with Required Hardware are set

up

Necessary Data Search

OTC Delivery of cardAuthentication by government official

Photographs Taken

Biometrics Captured

Process takes around 6 to 8 Minutes

8

Use of technology to increase farmer’s coverage in crop insurance

TAB based enrolment Objective : Technology based

farmer enrolment

Benefits: Real time issuance of

Cover Notes to the farmers

Farmer identification through photograph

Auto archiving of documents in soft format

Minimization of data entry error

Geo tagging is possible

9

SME Opportunity

Contributing ~37% to GDP (FY2013)

Asset value ~`13,637 bn Over 100 mn people

employed

Medium

Small

Micro Unregistered

.02%

4.7%

95%

Organized

UnorganizedMicro = upto 0.05mn, Small = upto

15 Mn & Medium beyond 15 Mn asset size

Insurance market size

78000

ICICI Lombard market

$1404 mn $53mn

10

Progress in financial Inclusion in India

Scheme Name

Scheme typeNo. of individual Enrolled (in mn)

PMJJBY Life Insurance 29PMSBY Personal

Accident93

APY Pension 2Aadhaar UIN 970PMFBY Crop

insurance200

11

Thanks

12

JAM

Aadhaar

Banks Account

Internet connectivi

ty Smart phones

Multiple initiatives to facilitate financial inclusion of the Indian citizen

“Jan-dhan Aadhaar-Mobile”

Leveraging the Power of JAM: Jan Dhan, Aadhaar and MobileEmerging Eco System

13

How does e-KYC work for banking& Insurance

Agent approaches customer with HHT/Tablet

Authentication through Fingerprint / OTPcaptured by HHT/Tablet

e-KYC data fetched from UIDAI repository

Customer provides 12 digit Aadhaar Number

Verifies Customer KYC details and captures other product specific data

Captured details uploaded to Bank Server

Account Opened in CBS and intimation is given back to Customer

OR

14

Enrolments under various schemes

2011 2014 2015

35%53%

95%

In India, bank account penetration increased from 35% to 95%

Additionally,190mn bank accounts opened since August 2014

Scheme Name Count of Enrolment(in mn)

PMJJBY 29.4PMSBY 93.3APY 1.97Total 124.7

30.43%

Rural Urban

31.32%

20.59% 17.66%

Female

MaleRural & Urban Segmentation

Public sector79%

Regional Rural18%

Private Banks3%

Insurance & Pension Scheme