About Rs 120 crore has been disbursed as subsidy to LPG customers in the country through the Aadhaar payment bridge facilitated by NPCI from June 1 to July 24, said Vijay S Madan, Director General and Mission Director, Unique Identification Authority of India. Speaking at ‘Financial Inclusion Conclave 2013’ sponsored by Dun & Bradstreet and Canara Bank in Bangalore, Madan said that so far, there were 30 lakh transactions in 19 districts across the country, of which 15 lakh beneficiaries got money to the tune of Rs 120 crore in their bank accounts.
Financial inclusion has a critical role to play in India’s growth story. Here Aadhaar plays a vital role in weeding out duplication and bogus identities, he said. Capital formation through credit and financial services is necessary for inclusive and sustainable growth and a well-functioning financial system is important for socially inclusive growth. Here again, Aadhaar help banks in efficient rollout of all government schemes, said Madan.
HS Upendra Kamath, CMD, Vijaya Bank, shared his bank’s experience and said, We are facing a big challenge in implementing the financial inclusion through technology adoption. The technology we have at present is unequal to the task. The handheld devices have its limitations. We don’t have a proven model as of now, he added.
Kamath said that about 50 per cent of the rural population has no access to financial mechanism. It is high time to bring all those financially excluded sectors together and create awareness through financial literacy.
Giving insights on an effective business correspondent (BC) model for speedy rollout of financial inclusion, S.S. Bhat, General Manager, Canara Bank, said, “The majority of the country’s population is in the villages and there is a lack of awareness. We are trying to bridge the gap through communication and training.
The Canara Bank has set up 30 centers to create awareness on the importance of financial inclusion for the financially illiterate sectors in the country. Bank is also planning to launch 65 more centers soon, he added.
The conclave brought together all the key stakeholders – government, banks and regulators to highlight the opportunities and critical challenges currently faced.