BACKGROUND PAPER                                                            (Updated on 19.04.08)

Disbursement of Social Security Pensions and payment of wages to NREGS wage seekers through Smart Card

1.      INTRODUCTION

       Timely disbursement of Social Security Pensions and wages to the target group with zero leakages is the avowed aim of Government of Andhra Pradesh. To achieve this, the Government has initiated a pilot project in partnership with banks and financial institutions for prompt payment of social security pensions and wages to NREGS labour leveraging technology by using smart cards. This not only enables reliable identification of beneficiaries of the schemes through finger-print validation but also promotes Financial Inclusion.

The concept is in consonance with RBI proposal to roll out smart card based banking services to the un-banked section of society. It is nothing but a branchless banking model. It enables establishment of last mile banking in the form of a banking outpost  ( business correspondent network) in every village to facilitate delivery of banking and financial services to the poorest of the poor. 

1.1.  Objectives:

·     Using smart card technology integrated with biometric identification for minimizing /eliminating bogus beneficiaries in the disbursement of Social Security Pensions and NREGS Wages

·    To ensure that benefits reach the target group in time without delay

·     To deliver other benefits such as housing payments, public distribution system, SHG linkage and a host of banking and financial services in course of time.

·         To put in place in every village a bank at the doorsteps of villagers, thereby bringing the un-banked segments into the banking fold.                                                <<<  Click to view full document  >>>