A Study on PNB’s Financial Inclusion Initiatives in Bulandshahr District of U.P w.r.t Asafabad Chandpura, Essapur, Etmad Sarai, and Pachota Villages

Presented by

Gaurav Rana

Mahesh Panicker

R.Radhika

Ruchika Jain

Vibhuti Sahai

Contents

Introduction Objectives of our Study Research Methodology Branches and villages visited Data Analysis Findings Recommendations Limitations Conclusion

Financial Inclusion

“The process of ensuring access to appropriate financial products and services needed by vulnerable groups such as weaker sections and low income groups at an affordable cost in a fair and transparent manner by mainstream Institutional players”.

The Government of India has named the project of Financial Inclusion as “SWABHIMAAN”.

Business Correspondent Model

Bank(Punjab National

Bank)

Technical Service Provider (TSP)M/S Integra Micro System

Business Correspondent (BC)I 25 RMCS

Business Correspondent Agent (BCA)

HHT Devices

Objectives of the Study To understand financial inclusion.

To understand the Business Correspondent Model.

To understand the working of BC agents and identify the problems faced by them.

To identify the issues faced by: customers having smart card and using it for

trans actions customers having smart card but not using it Non card holders.

Research Methodology Research Design – Exploratory

Methods of Data collection - Primary and secondaryo Primary Data- Questionnaires and oral interviewso Secondary Data- Information given by PNB.

Period of study - 1st oct- 13th oct, 2012

Target population - BC Agents and Villagers aged above 10 years.

Sample Size - 107 respondents of all categories.

Sampling Method - Random Sampling.

Branches visited

Branches visited: Naithla Hasanpur- Different types of loans available for rural

customers, eligibility and other details.

Jatpura Mukeempur- KYC norms, Role of introducer while opening an account etc.

Sarawa- Difference between urban customers and rural customers.

Smart Card

Villages covered Interaction with the BC agents:

o Chitsouno Ajnarao Kirori

Interview with BC agents:o Saurabh Kumar - Pachotao Timman Singh - Etmad Saraio Rashid Ali - Asafabad Chandpurao Yashpal Singh- Essapuro Bobby – Khushalpur

Ultra Small Branch (USB)- Khakhoda, BCA Uma Shanker Sharma

USB at Khakhuda Village

Real time transactions. No need of smart card. Customers were provided with passbook. BC Agent (Business facilitator) is directly linked

with the bank. High degree of commitment is required by the

Business facilitator. High capacity of HHT device. NREGA and Pension funds are also included. Tie up between mother diary and PNB.

HHT at Khakhuda village

Analysis

Male and Female users

75%

25% 0%0%

30 % female and 70 % male

50 % male and female

60 % Female and 40 % male

Any other

How does BCA address your queries?

Etmad Sarai

80%

0%10%

10%

arrange himself Meerting with other BC

BANK MANAGER branch Staff

Asafabad Chandpura

50%

0%20%

30%

arrange himself Meerting with other BC

BANK MANAGER branch Staff

Essapur

85%

10%5%0%

arrange himself Meerting with other BC

BANK MANAGER branch Staff

Panchota

80%

20% 0%0%

arrange himself Meerting with other BC

BANK MANAGER branch Staff

Why don’t you use Smart Card?

Etmad Sarai

42%

50%

8%

Not interesredlack of awarness lack of trust

Asafabad Chandpura

36%

55%

9%

Not interesredlack of awarness lack of trust

Panchota

40%

20%

40%

Not interesredlack of awarness lack of trust

Essapur

46%

31%23%

Not interesredlack of awarness lack of trust

Smart Card help in saving?

Etmad Sarai

67%

33%

yes no

Asafabad Chandpura

91%

9%

yes no

Panchota

80%

20%

yes no

Essapur

77%

23%

yes no

What made you not transact?

Etmad Sarai

30%

60%

0%0%10%

No trust

Limited funds

BC Agent Far off

Misplaced the card

Misprint on biometric/General Information oncard

Asafabad Chandpura

60%

40%

Limited funds Others

Panchota

33%

50%17%

No trust

Limited funds

Misprint on biometric/GeneralInformation on card

Essappur

60%

40%

Limited funds Others

Findings 1 of 2

Villagers are concerned about Remittances, MNREGA, Widow fund, Pension etc to be integrated with smart card.

Some customers are not aware of the BCA in their villages.

BCAs are not satisfied with their salaries and some BCA’s salary is pending.

Lack of awareness in many villagers.

Findings 2 of 2

Some smart cards are having name & address of one person, but the database is of another person.

Problem of acceptability of new services.

No funds to deposit is another problem with many villagers.

Women are reluctant in talking to male BC Agents.

Many villagers misinterpret smartcard with ATM card.

Recommendations 1 of 3

Frequent meetings should be organized among the bank officers, TSP officers and BC Agents.

Remuneration of the BC Agents should be regular and must be improved.

Speedy delivery of smart cards should be ensured.

Pension, NREGA and remittances facilities should also be provided through the smart cards.

To ensure successful Financial inclusion one more BC Agent, preferably women, should be appointed.

Recommendations 2 of 3

Effectiveness of on location training to BC Agents should be ensured.

BC Agents should be provided with the conveyance charges.

Cash available with BC agent should be increased from Rs. 5000 to at least Rs. 10,000 so that they have enough liquidity with them.

Recommendations 3 of 3

Bank should introduce rewards and recognition for personnel initiating and innovating attitudinal changes and suggesting new products and services.

Opening up of USB’s at a faster pace in all villages like Khakhuda

Limitations

Paucity of time was a major constraint.

Ladies of the villages were reluctant to answer .

Lack of information.

In some village exact situation was not clear due to the presence of BC Agent.

Language Barrier in some cases.

Conclusion 1 of 2

Financial inclusion initiative by PNB in Bulandshahr District has been a success up to some extent.

It is still in the primary stage and has to overcome many obstacles.

To ensure successful financial inclusion, BCA’s motivation level must be improved.

Conclusion 2 of 2

Reaching out more females in the financial inclusion initiative is very vital for achieving the objective.

Inclusive growth will act as a source of empowerment and will allow people to participate more effectively.

THANK YOU