A Study on PNBs 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 secondary

o

Primary Data- Questionnaires and oral interviews o 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 o o

Chitsoun Ajnara Kirori

Interview with BC agents:

o o o

o
o

Saurabh Kumar - Pachota Timman Singh - Etmad Sarai Rashid Ali - Asafabad Chandpura Yashpal Singh- Essapur 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
30 % female and 70 % male 50 % male and female 60 % Female and 40 % male Any other 25% 0%

75%

How does BCA address your queries?

Etmad Sarai
arrange himself BANK MANAGER 10% 10% 0% 80%
20% 0%

Asafabad Chandpura
arrange himself BANK MANAGER 30% 50% Meerting with other BC branch Staff

Meerting with other BC branch Staff

Essapur
arrange himself BANK MANAGER 10% 5% 0% Meerting with other BC branch Staff

Panchota
arrange himself BANK MANAGER 20% 0% Meerting with other BC branch Staff

85%

80%

Why dont you use Smart Card?

Etmad Sarai
Not interesred lack of awarness lack of trust 8% 42% 50%

Asafabad Chandpura
Not interesred lack of awarness lack of trust 9% 36% 55%

Panchota
Not interesred lack of awarness lack of trust 40% 40%

Essapur
Not interesred lack of awarness lack of trust 31% 23%

20%

46%

Smart Card help in saving?

Etmad Sarai
yes 33% no

Asafabad Chandpura
yes 9% no

67%

91%

Panchota
yes 20% no

Essapur
yes 23% no

80%

77%

What made you not transact?

No trust Limited funds BC Agent Far off Misplaced the card Misprint on biometric/General Information on card 60%

Etmad Sarai
10% 0% 30%

Asafabad Chandpura
Limited funds Others

40% 60%

Panchota
No trust Limited funds 33% 50% 17% Misprint on biometric/General Information on card

Essappur
Limited funds 40% 60% 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 BCAs 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 USBs 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, BCAs 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.

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