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INSTITUTE FOR DEVELOPMENT AND RESEARCH IN BANKING TECHNOLOGY
RBI-OECD Workshop
Delivering Financial Literacy March22-23, 2010. Bangalore
Presentation by:
Mr. B. Samba Murthy
Director, IDRBT.
Website: www.idrbt.ac.in
Email: [email protected]
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“Established by RBI in 1996 for
promoting use of technology in
Banking Sector.”
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MISSION
Explore and Exploit technology for common
good
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FINANCIAL EXCLUSION – A FEW DIMENSIONS
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.
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REAL CHALLENGE
Provide basic financial services to over
300 million excluded people spread over
600,000 villages.
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Use of I.T. is inevitable to provide access to
formal Banking services.
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BUSINESS NEEDS
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
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ROLE OF IDRBT IN FINANCIAL INCLUSION
Encourage Banks to develop an
appropriate ICT platform.
Facilitate development of common and
inter-operable standards for critical
components of ICT.
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IDRBT INITIATIVES
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.
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MENU OF SOLUTIONS
Business Correspondent Enabled.
Smart Card Based
Mobile Banking – (Bank Led Model)
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SMART CARD BASED SOLUTIONS
(OFFLINE)
Customer Bank
Terminal F. I. Server
Core Banking
Solution
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MOBILE BANKING
Over 500 million subscriber base.
Low transaction cost.
Regulatory Framework in place.
Bank Led Model to begin with
collaborative models are explored.
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BC Micro ATM Merchant PoS
Bank A Bank B
UIDAI Settlement
Agency
Customer
( Smart Card / Mobile Phone)
NPCI
MOBILE BANKING SOLUTION BANK LED MODEL
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OFF US CHART OF UIDAI
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AGENCIES INVOLVED IN IMPLEMENTATION
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.
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AGENCIES INVOLVED IN IMPLEMENTATION…CONTD
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.
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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
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EMERGING SCENARIO
Branchless Banking Model
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RESERVE BANK OF INDIA
RBI PLAYS A CATALYSTIC ROLE AND
ORCHESTRATES THE EVOLUTION OF
BRANCHLESS BANKING TO ACHIEVE
FINANCIAL INCLUSION
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