India Post - Leveraging the power of Rural Post Office Network for EBT & DBT

Presentation by S.V.Rao, I.Po.S.

Asst. Postmaster General (FS & BD), O/o Chief Postmaster General, Andhra Pradesh Circle.

SaiRamVenkatesha

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Plan of Presentation

3. MGNREGA - India Post

1.India Post - Network

4. Post Office – EBT Model

2. India Post – Leveraging Rural Post Office Network

5. DBT thro’ Post Offices

6. Positive Outcomes & Appreciation

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Plan of Presentation

3. MGNREGA - India Post

1.India Post - Network

4. Post Office – EBT Model (Andhra Pradesh)

2. India Post – Leveraging Rural Post Office Network

5. DBT thro’ Post Offices – Chittoor Model

6. Implementation Issues & Research Questions

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3

Post Offices

1,55,204

Departmental

Post Offices

25,651

Urban POs

(10.46%)

Rural POs

(89.54%)

Extra

Departmental

Post Offices

1,29,553

2.20 lakh

Departmental

Employees

2.80 lakh

GDS

Employees

On an average, a post office covers an area of 21.2 sq. km and serves 7,174 people.

12,999 computerized and networked Post Offices.

India Post - Network 1

All India

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4

4

Post Offices

16142

Departmental

Post Offices

2343

Urban Pos

(8%)

Rural POs

(92%)

Extra

Departmental

Post Offices

13704

16,448

Departmental

Employees

29,127 lakh

GDS

Employees

On an average, a post office covers an area of 29.94 sq. km and serves 4,775 people.

2437 computerized and networked Post Offices.

India Post - Network 1

A.P. Postal Circle (A.P. & Telangana States)

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Plan of Presentation

3. MGNREGA - India Post

1.India Post - Network

4. Post Office – EBT Model (Andhra Pradesh)

2. India Post – Leveraging Rural Post Office Network

5. DBT thro’ Post Offices – Chittoor Model

6. Implementation Issues & Research Questions

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• Trust of the local people • Intimate knowledge of people and locality • Basket of financial services for households • Cost effective model – in the larger context • Experience of handling large sums of money

India Post – Leveraging Rural Post Office Network 2

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•SHGs, Women & Child Development, Tribal Welfare •Informal Sector Workers SSS

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Item of work Coverage Volumes ( AP Circle )

Existing PO SB All India • No. of SB Accounts: 31.20 Cr (5.56 Cr) • Available in 1,52,946 POs (16,144) • Balance – Rs.6,03,169 Cr (1,08,570 Cr)

MGNREGS wage Payments

All India (Expect AP) A.P.

• No. of Accounts: 5.8 Cr • Amt disbursed: > Rs.31,628 Cr •> 97,972 POs Accts – 2 Cr : Amt Rs.12,964 Cr : 16,144 POs

Pensions

Kerala, T.N., Karnataka, Rajasthan, H.P. Gujarat A.P.

• >55 lakhs ml SB accounts • Amt paid – Rs.800 – 1000 Crs 53 lakh Accts : Amt Paid - Rs.2092 Cr

Indiramma Housing Scheme

A.P. • No. of SB Accounts: 6.4 lakhs • Amt disbursed: Rs. 960 Cr • 14, 683 POs

Some existing Financial Services of India Post

India Post – Leveraging Rural Post Office Network 2

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Plan of Presentation

3. MGNREGA - India Post

1.India Post - Network

4. Post Office – EBT Model (Andhra Pradesh)

2. India Post – Leveraging Rural Post Office Network

5. DBT thro’ Post Offices – Chittoor Model

6. Implementation Issues & Research Questions

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MGNREGA – Post Offices Vs Banks (All India)

MGNREGA – India Post 3

YEAR No. of Accounts Opened

Total A/cs Banks Post Office PO %

2009-10 9,37,85,017 4,99,88,267 4,37,96,750 47

2010-11 9,88,26,075 5,51,77,236 4,36,48,839 44

2011-12 8,28,01,249 3,81,16,213 4,46,85,036 54

2012-13 8,26,02,815 3,79,17,015 4,46,85,800 54

2013-14 10,12,51,233 6,19,50,502 3,93,00,731 39

2014-15 (Jan’15) 10,12,50,195 6,19,50,418 3,92,99,777 39

TOTAL 56,05,16,584 30,50,99,651 25,54,16,933 45

YEAR Amount Paid (Rs.in Cr)

Total Amt Paid Thro' Banks Thro' Post Offices PO %

2009-10 22,151 13,225 8926 40

2010-11 20,292 12,350 7942 39

2011-12 17,567 9,200 8366 48

2012-13 10,693 5,149 5543 52

2013-14 23,438 16,573 6865 30

2014-15 (Jan ‘15) 19,303 13,851 5451 28

TOTAL 1,13,447 70,350 43,096 38%

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MGNREGA – A.P. Circle Experience

MGNREGA – India Post 3

YearNo. of SB Accounts

(No. in Cr)

Amount of wages

disbursed (Rs. in Cr)

2007-08 0.79 428

2008-09 1.01 1276

2009-10 1.18 2633

2010-11 1.30 2917

2011-12 1.37 1330

2012-13 1.41 1320

2013-14 1.94 1277

2014-15 (Dec'14) 2.00 1783

TOTAL 2.00 12964

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Plan of Presentation

3. MGNREGA - India Post

1.India Post - Network

4. Post Office – EBT Model (Andhra Pradesh)

2. India Post – Leveraging Rural Post Office Network

5. DBT thro’ Post Offices

6. Implementation Issues & Research Questions

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Post Office –EBT Model (A.P.) 4

Factors leading to the initiative…

External

• AP Govt. ICT Model for MGNREGS implementation

led to capacity-building for electronic fund flow &

real time MIS

Internal

• Over 13 million Wage Accounts manually handled!! • To avoid delay in payments • To avoid fraudulent payments • To ensure real time MIS • To address competition from Banks!

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Features of PO EBT Model

Tripartite Agreement between GoAP, DOP and AP Online (Technology Partner)

Online fund flow

Post Office Savings Bank Account

Local SHG women as Postal Franchisee/CSP

in GPs without PO (Now thro’ DoP GDS officials)

Robust Monitoring & Alerts System

Post Office – EBT Model (A.P.) 4

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Post Office –EBT Model 4

Role of Technology Partner (APOnline)

Ensure Development & maintenance of software application

Setting up and maintenance of Data Centre

Deploying Point of Transaction Devices (POTDs)/ Micro ATMs.

Develop and maintain Public Portal Service

Provide Field level technical support

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EBT/DBT - Coverage..

MGNREGS Wage Payments

Social Security Pensions

Post Office –EBT Model (A.P.) 4

AP State Telangana Total

Gram Pachayats 12934 3852 16786

Districts 13 6 19

Post Offices 9698 2346 12044

No. of Wageseekers 91 Lakh 45 Lakh 1.36 Cr

Amount Disbursed 1850 Cr 1810 Cr 3660 Cr

AP State Telangana Total

Districts 13 6 19

Post Offices 9698 2346 12044

No. of Wageseekers 39 Lakh 15 Lakh 54 Lakh

Amount Disbursed 1448 Cr 644 Cr 2092 Cr

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1. Generation of Pay Order

at MCC

2. Uploading of generated Pay

Order to NREGS Server

3. Authorisation

of FTO by CRD

4. Confirmation of remittance by the Bank

5. Pushing the Pay Order to AP

Online Server

6. Approval of Pay Order by the

Head Postmaster after receipt of

FTO

7. Crediting wage amounts

to individual SB accounts

8. Downloading Deposit data to the POTDs

9. Supply of Cash

10. Payment of Wages & Upload data

PO-EBT Model Cycle of Wage &

Pension Payments

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APOnline

Data Centre 6

8

(MCC) MGNREGS

SDC

1

2

Bank

6 SO/BO

7

HO 5

FTO to Bank

3

Muster Roll

2

Fund Transfer

2

SSP

Server

2b 2

Disbursement of MGNREGS Wages and SSPensions (Portability-Disbursement at any BO within the SO)

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Role of Technology Partner – Public Portal (appost.aponline.gov.in)

Post Office –EBT Model (A.P.) 4

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Plan of Presentation

3. MGNREGA - India Post

1.India Post - Network

4. Post Office – EBT Model (Andhra Pradesh)

2. India Post – Leveraging Rural Post Office Network

5. DBT thro’ Post Offices

6. Implementation Issues & Research Questions

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DBT Launch in Chittoor on 30.3.2013 by Hon’ble CM of AP & MoRD

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DBT (Aadhar Enabled Payments) Coverage

19 Dists

(AP – 13 : TS – 9)

under DBT (AEPS)

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AUA - DoP

APOnline

6 BO

GP/ Mandal GoAP

Data Center

1

7

Nodal Bank

6

SO HO

FTO to Bank

4

Muster Roll at Worksite

2

Online Fund Transfer

PO based Aadhaar authenticated benefit payments

GPRS

ASA BSNL

CIDR UIDAI

4

5

6 6

NPCI

3

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AUA Server

Aadhaar based authentication & payment process

1 Entry of Acct No Sends Acct No

2

UIDAI No, Benf details 3 Show Details

4

5 Finger Print 6 UIDAI No & FP

7

Aadhar No Finger Print

BSNLServer (ASA)

10

Response Code

8

Aadhar Server (CIDR)

9

Aadhar No Finger Print

Response Code Match, Mismatch,

No Aadhar No

Response Code, Balance if match 11

16 Beneficiary POTD

APO

Show Balance if Match 12

13 Withdrawal

Amount

14 Trans details

Trans Confirmation 15

* For SSP, steps 12&13 are not there.

Total balance in the account shall be paid

*

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1. At Mandal Computer Center (MCC)

Worker attendance and work progress reports are entered

on the GoAP NREGA Portal.

MCC generates Pay Orders containing Job Card No.,

UID/EID, PO SB Account No., Amount of wages to be paid

2. GoAP NREGA Database then consolidates all the pay orders

entered at various MCCs.

3. GoAP NREGA Server

Sends electronic file comprising Job Card No., UID/EID, PO

SB Account Number, Amount to be paid to APOnline.

Transfers Funds to the Nodal bank & then to Head PO

4. APOnline transfers this data to Dept of Post i.e. to

HO/SO/BO/GDS

DBT through Post Office - Process-1

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5. DoP places sufficient cash at SO and subsequently at BO/Postal

Franchisee location

6. Wage seeker (Beneficiary) approaches BO/GDS

Places his finger prints for authentication on UIDAI compliant

PoTD/Micro ATM Device.

Micro ATM Device transmits the Finger Print Data in encrypted format

(as specified by UIDAI)

To Dept of Posts (AUA-Authenticated User Agency) through

APOnline Server

To BSNL (ASA-Authenticated Service Agency) Server to CIDR

(Central Identities Data Repository) for authentication.

On receipt of successful authentication from CIDR(Central

Identities Data Repository)

Data flows back from ASA (BSNL) to AUA (DoP) to Micro ATM.

BO/GDS disburses the amount to wage seeker

7. Real time “Direct Hit” of transaction details to NREGS Server

DBT through Post Office - Process-2

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Plan of Presentation

3. MGNREGA - India Post

1.India Post - Network

4. Post Office – EBT Model (Andhra Pradesh)

2. India Post – Leveraging Rural Post Office Network

5. DBT thro’ Post Offices

6. Positive Outcomes & Appreciation

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UIDAI -Authentication Transactions (DoP vs. Banks) Success Trend (A.P + Telangana)

Paying Agency

...April-14 May-14 June-14 July-14

Success (in Lakhs of

UIDs) % Success % Success % Success %

Dept. of Posts

19.81 96% 31.76 97% 31.36 97% 35.15 96%

APGVB 0.41 85% 0.03 52% - - - -

AXIS Bank 2.67 87% 3.06 90% 2.88 90% 2.25 88%

ICICI Bank 1.43 83% 1.84 84% 1.82 82% 1.58 82%

Corporation Bank

- - - - - - 1583 82%

Total for Rural Development

24.35 94% 36.7 95% 36.06 95% 39.0 95%

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** Successful unique UIDs in Lakhs (AP + Telangana)

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Electronic/Direct Benefit Transfer Program – Positive Outcomes

• GoAP, Rural Development Dept facilitated studies JPAL Study, 2011-12 ▪ Transparency in scheme administration ▪ Eliminated /reduced leakages , delays, bogus/

duplicates, falsification ▪ Ensured timely payment directly to intended

beneficiaries, ▪Reduced transaction costs • CGAP, World Bank Study, 2012-13 ▪ PO leveraging existing institutional set up ▪ PO is Cost effective model ▪ Experience of handling large sums of money ▪ People Resources

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DBT Launch in Chittoor, 30.3.2013 by Hon’ble CM of AP & MoRD , MoS

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