Institute for Development and Research in Banking Technology

1. Presentation by: Mr. B. Samba Murthy Director, IDRBT. Website: www.idrbt.ac.in Email: bsambamurthy@idrbt.ac.in Institute for Development and Researchin Banking Technology RBI-OECD Workshop Delivering Financial Literacy March22-23, 2010. Bangalore

2. “Established by RBI in 1996 for promoting use of technology in Banking Sector.”

3. Explore and Exploit technology for common good MISSION

4. Over 100 Million house holders had no formal access to credit. • Nearly 600 million new accounts to be opened. • Out of 6,25,000 villages there are bank branches only in about 30,000 villages. Financial Exclusion – A few dimensions

5. Provide basic financial services to over 300 million excluded people spread over 600,000 villages. Real challenge

6. Use of I.T. is inevitable to provide access to formal Banking services.

7. Increase outreach Scale up number of users Reduce Opportunity cost/time Ensure Reliability Integrity of Account and Information Ensure Security High Degree of Assurance Inter-operability Business needs

9. Encourage Banks to develop an appropriate ICT platform. • Facilitate development of common and inter-operable standards for critical components of ICT. Role of IDRBT in financial inclusion

10. Working closely with UIDAI,NPCI. • Developed Common and Inter-operable standards for smartcards. Accepted by Indian Banking Association (IBA). • Common and Inter-operable standards for Micro. ATM in final stages. Working with UIDAI,NPCI,IBA,RBI. • Developed inter-operable standards for mobile banking in association with Banks, Telco, Service Providers. Lab tests are in progress at IIT Chennai. • Working with NABARD-FITF to technically evaluate proposals for viability GAP funding in ICT-FI initiatives of Banks. IDRBT Initiatives

11. Business Correspondent Enabled. Smart Card Based Mobile Banking – (Bank Led Model) Menu of solutions

12. Smart Card based Solutions(offline) Core Banking Solution Bank Terminal Customer F. I. Server

13. Mobile banking Over 500 million subscriber base. Low transaction cost. Regulatory Framework in place. Bank Led Model to begin with collaborative models are explored.

14. Mobile banking solution bank led model Settlement Agency UIDAI NPCI Bank A Bank B Merchant PoS BC Micro ATM Customer ( Smart Card / Mobile Phone)

15. OFF US Chart of UIDAI

16. IDRBT – Institute for Development and Research in Banking Technology Role: Technical Standards / Frameworks Development, Inter-operability and security. NPCI – National Payment Corporations of INDIA. Role: Build and operate switch for Inter-Bank transactions and settlement. Agencies involved in implementation

17. UIDAI—Unique Identification Authority of INDIA. Role: Build and operate bio metric database for the entire population. Helps in authentication and Identity Management. IBA– Indian Banks Association. Role: Propagate Standards / Frameworks. Agencies involved in implementation…contd

18. I.I.T. – Indian Institute of Technologies --Chennai and Kanpur Role: Help Develop frameworks and conduct lab tests. R.B.I – Reserve Bank of INDIA. Role: Regulatory Framework to ensure safety and security. Agencies involved in implementation…contd

19. Branchless Banking Model Emerging scenario

20. RBI PLAYS A CATALYSTIC ROLE AND ORCHESTRATES THE EVOLUTION OF BRANCHLESS BANKING TO ACHIEVE FINANCIAL INCLUSION RESERVE BANK OF INDIA

21. Thank You