132 nd SLBC
Table Agenda
1. Common RFP for selection of Business Correspondent
As directed by Ministry of Finance, Government of India, Indian Overseas Bank as
leader
bank
floated
common
RFP
on
07.05.2012
for
engaging
Business
Correspondents for the cluster comprising Tamil Nadu, Kerala and Puducherry.
M/s.FINO Fintech Foundation had emerged as successful Bidder by quoting 0.46 %
of Cash Handling Fee.
A committee called “Oversight& Implementation Group” was formed under the
leadership of State Bank of India. As suggested by them some issues were taken
up with M/s.FINO Fintech Foundation for smooth and effective implementation of
FI projects.
Secretary (FS), MOF in the bankers’ meeting held on 06.10.2012 advised the
Leader Banks to obtain concurrence of selected BCs beforehand on the following
issues before execution of BC Agreement with a view to addressing the issues such
as de-risking of BCAs and reputational risk of Banks.
a.
b.
c.
d.
Collection of interest free deposits is not permitted
Collection of non-refundable deposits is not permitted
Hand Held Device should be owned by the BC
BC should not, in any way, convey to the BCA that they can hope to get jobs
with the banks.
e. Banks will vet the agreement between BC and BCA.
M/s. FINO Fintech Foundation, the common BC of our cluster has not given their
concurrence on the above issues.
The Oversight and Implementation Group forwarded a draft letter to be
addressed to the BC by Leader Bank containing the terms and conditions to be
incorporated in the BC Agreement. Leader Bank (IOB) had sent the letter to M/s.
FINO Fintech Foundation on 03.11.2012 in line with the above draft letter.
M/s. FINO Fintech Foundation had not agreed to most of the terms and
conditions, but put forth their own terms and conditions for implementing the FI
project. In the meeting of Member Banks and BCs held by Joint Secretary on
20.11.2012 it was decided to obtain unambiguous consent of the BC to the terms
and conditions before 30th November 2012.Accordingly Leader Bank had sent a
Letter on 24.11.2012 to M/s.FINO Fintech Foundation for which they sought more
time for getting approval from their Board.
Meanwhile, as advised by the Oversight and Implementation group, a meeting of
select cluster leaders having M/s. FINO Fintech Foundation as BC was held on
14.12.2012. It was decided in that meeting that cluster leaders should convey their
final views to Bank of Baroda by 20.12.2012. In this regard, a Bankers’ Committee
meeting was held on 20.12.2012 to examine the matter.
Meanwhile the following difficulties are encountered in the process:
a ) The decision of the Union Government to commence Direct Cash Transfer from
01.01.2013 has created an abrupt and emergent need for extending banking
facilities through available channel without waiting any longer for the common BC
to commence operations.
b) Under directions from the Ministry of Finance, Government of India, all banks
have executed MOU with M/s. CSC eGovernace Services India Ltd accepting them
as the common BCs in all clusters where CSCs are setup. This is overlapping with
the envisaged function of the RFP based common BC.
c) Several existing BCs and TSPs have ceased functioning or stopped taking
interest in their work as there is uncertainty about their continuance after
engagement of RFP based BC.
d) Apprehensions are raised in Tamil Nadu about doorstep delivery of Old Age
Pension when the RFP based BC is engaged; as this is not a condition in RFP.
132 nd SLBC
Table Agenda
2. Non submission of LBR-2 or LBR U-2 by banks to respective LDMs
SLBC has been advised by many Lead District Managers that the district coordinators of the member banks are not submitting LBR-2 or LBR U-2 to their
respective Lead Bank Office for several months which results in serious hardship
for the LDMs to submit the data to SLBC.
As an example we furnish below the list of defaulting banks in Thoothukudi district
who have not submitted even a single LBR 2/LBR U-2 in the current financial year.
Bank Name
Canara Bank
Indian Bank
Union Bank of India & UCO bank
Andhra Bank, HDFC Bank, Bank of Maharastra,
Syndicate Bank, Karur Vysya Bank & City Union Bank,
Oriental Bank of Commerce, Punjab National Bank,
Catholic Syrian Bank, Vijaya Bank, South Indian Bank
& Dena Bank
No. of
branches
16
10
Each 3
Each 2
Each 1
SLBC received such letters from LDMs of many districts and also from some of
the District Collectors. It is quite disheartening to note that some banks have not
submitted the very vital return even once during the current year 2012-13. This is
a very serious issue as SLBC depends entirely on the data received from the LDMs
for conducting the quarterly meetings and to review various schemes which are
implemented in the State and for submission of various statements to RBI,
NABARD and Ministry of Finance.
Undoubtedly non submission of data will definitely result in wrong reporting, which
will show a very poor performance level for the district / banks despite the fact
that banks may have performed very well under Annual Credit Plan. We advise the
member banks to take serious note of this situation and instruct all their District
Co-ordinators suitably to submit LBR-2, LBR-U 2 and all other required data to
LDMs in time to avoid such complaints in future.
The Lead District Managers are advised to confirm to SLBC that they have
received the data from all the banks in the district before submission of
district consolidation to SLBC. The LDMs are also advised to submit the list of
defaulting banks to SLBC immediately after the deadline by email
(slbctn@gmail.com and lbd@iobnet.co.in) or by FAX 044-2841 8030 to enable
SLBC to escalate the issue with the controlling offices of the defaulting banks
and also with RBI and Ministry of Finance.
The forum may deliberate on this issue.
Table Agenda
132 nd SLBC
3. Mapping of Gram Panchayats and Planning for BCA/CSCs for Direct Cash
Transfer – Sub Service Area Approach
Ministry of Finance vide their letter dated 20.12.2012 has advised the SLBC
Convenors of 43 districts to implement the direct cash transfer in the bank
account of the beneficiary under various programmes w.e.f January 2013 and in the
rest of the country in a phased manner.
In order to cover of the entire country with banking services to enable Direct Cash
Transfer they have advised the detailed guidelines on Mapping of Gram Panchayats
and Planning for engagement of BCA/CSCs (Common Service Centres) for Direct
Cash Transfer – Sub Service Area Approach.
Ministry of Finance has advised to ensure that the Gram Panchayat(s) to be
covered by each bank branch /BCA is clearly identified as a sub service area within
the service area of the branch. They have advised to form sub-service area, based
on the group of Panchayats, taking the population about 1,000 to 1,500 households
and geographical conditions into consideration such that one Branch/BCA/CSC
extends service to each sub-service area. In case any Panchayat requires more
than one BCA/CSC, the sub-service area for each BCA/CSC, within the Gram
Panchayat must be specified.
Ministry of Finance advised the following time line for Mapping of Gram
Panchayat(s) and BCA/CSC in their service area, and assignment of sub-service
areas for pilot districts and remaining districts.
For Tamil Nadu
1. Banks: Mapping of Gram Panchayat(s) and BCA/CSC in their service area, and
assignment of sub-service areas by 15.01.2012 and submit to respective
district LDM.
2. LDMs: Consolidation of the information for the district by 20.01.2013 and
submit to SLBC Convenor.
3. SLBC: Consolidate the information for the state by 25.01.2013 and submit to
Ministry of Finance
This exercise should clearly indicate the sub-service area, number of sub-service
areas covered by the existing BCAs, to be covered by existing functional CSCs and
sub-service areas which remain to be covered by BCA/ CSCs. SLBC already sent a
detailed letter to all member banks and LDMs on 21.12.2012 along with a copy of
the guidelines received from Ministry of Finance.
Member banks in Tamil Nadu are advised to complete the mapping of Gram
Panchayat(s) and BCA / CSC in your service area and assignment of sub service
area on or before 15.01.2013 and consolidate the report of your bank district wise
and submit the report to the concerned Lead District Manager.
Lead District Managers in Tamil Nadu are advised to consolidate and send the
report collected from banks in your district on or before 20.01.2013 to enable
SLBC for onward submission to Ministry of Finance.
A copy of the Ministry of Finance letter along with format for collecting the
information for the district from the Branch Managers by LDMs is enclosed for
your use.
F.No. 6/36/2012-FI
Government of India
Ministry of Finance
Department of Financial Services
***********
3rd Floor, Jeevan Deep Building,
SansadMarg, New Delhi,
Dated the 20th December, 2012
To
1.
2.
3.
CMDs of all Public Sector Banks,
Chairman of all RRBs (through sponsor Banks) ,
All SLBC Convenors
Sub: Mapping of Gram Panchayats and Planning for BCA/CSCs for Direct Cash
Transfer – Sub Service Area Approach – Regarding
Sir/ Madam,
Under the Financial Inclusion Programme ‘Swabhiman’, Banks had provided banking
services in over 74,000 habitations of 2,000 and above population. This, inter alia, included
established Business Correspondents in such villages. This is being extended to habitations of
1,000 and above population in North-East and Hilly States and 1,600 and above population in
the rest of the country this year.
2.
However, with the announcement of Direct Cash Transfer in 43 Districts w.e.f. January,
2013 and in the rest of the country in a phased manner, it has become necessary that
comprehensive plan for coverage of the entire country through banking services to enable
Direct Cash Transfer is prepared.
3.
(i)
The following guidelines are issued in this regard:
It shall be the endeavor to ensure that there is at least one bank branch/ Business
Correspondent Agent (BCA) in every Gram Panchayat(s). Since the population of Gram
Panchayat varies across the States, Banks need to ensure that about 1,000 to 1,500
households are available in the sub-service area of BCA. In case of North-East, Hilly
States and sparsely populated regions of other States banks may decide the households
to be covered by each BCA appropriately. In case of larger Gram Panchayats more than
one BCA could be appointed. In case of smaller Gram Panchayats more than one
contiguous Gram Panchayat, taking into consideration the geographical area, could be
assigned to each BCA. In every case, it should be ensured that the Gram Panchayat(s)
(ii)
to be covered by each bank branch/ BCA is clearly identified as a sub-service area
within the service area of the branch.
Banks had earlier carried out an exercise of preparing Service Area Plans in which bank
branch/ BCA to service each Gram Panchayat(s) was indicated. This should be
immediately revisited by every bank for all Gram Panchayats in its service area keeping
(i) above in mind.
(iii)
The first step in this exercise would be to form sub-service area, based on the group of
Panchayats as at 3(i) above, taking the population and geographical conditions into
consideration such that one Branch/BCA/CSC extends service to each sub-service area.
In case any Panchayat requires more than one BCA/CSC, the sub-service area for each
BCA/CSC, within the Gram Panchayat must be specified.
(iv)
Wherever the existing BCA is functioning satisfactorily, the same should be continued
and remaining households in the allocated sub-service areas should be covered through
the BCA. Considering the larger benefits of the kiosk banking model, it should be
endeavoured to, in a phased manner, migrate the BCAs to kiosk banking system.
(v)
In case the existing BCA is stationed at a place other than Gram Panchayat
headquarters, there should be no need to change its location. It should, however, be
ensured that the BCA serves the entire sub-service area allocated to it.
(vi)
Wherever there is either no BCA functioning or the performance of the existing BCA is
less than satisfactory, the Common Service Centre, set up under aegis of the
Department of Electronics and Information Technology, Government of India, under the
National e-Governance Programme, should be engaged as BCA. It may be located at a
place other than the Financial Inclusion village in the same sub-service area. All PSBs
have already signed an agreement with M/s CSC e-Governance Service India Ltd., for
engaging CSCs as BCA. Immediate action for assigning code and making the CSCs
functional should be taken. Till such time the banks install the software and complete
other technical requirements for cash transactions, the CSC should be used for activities
other than cash withdrawal transactions. They should, in particular, be used for opening
new accounts of beneficiaries under the scheme for Direct Cash Transfer. All Banks
must ensure expeditious issuance of KO code for the CSCs which are identified for
appointment as BCAs. CSC Services India Ltd. would ensure that the required
information is furnished to the banks and that all CSCs are ready in terms of
equipments, connectivity, biometric device, card reader and printer latest by 31.12.2012.
(vii) In the sub-service area where neither a BCA nor a functional CSC is available, the M/s
CSC e-Governance Services India Ltd. would establish a new CSC for which suitable
advice would be issued by the CSC Services India Ltd. In case this is not feasible, the
Banks could engage a new BCA.
(viii) RBI guidelines provide for the category of persons/ organizations which could be
engaged as BCA. This, inter-alia, include Self-Help Groups, NGOs, Post Offices. Since
the BCAs are to be appointed in consultation with the banks, it should be ensured that
the BCAs, as per the guidelines approved by RBI, only are appointed by the BCs
engaged by the Banks.
In case of CSCs, as the agreement for BC has been signed by the banks with M/s CSC
e-Governance Services India Ltd., , there should be no need to enter into any fresh
agreement with Service Center Agencies (SCA) in the States/Districts, who would be
sub-BC for the CSC Services India Ltd.
(ix)
In case of urban areas, banks do not have any specified service area. Instructions had
earlier been issued that in the urban areas specific wards/ areas could be allocated to
specific banks for the purpose of Financial Inclusion. The above guidelines would apply
accordingly to the wards/ areas allocated to banks in urban areas. Wherever CSC exists
in urban areas, the same may be considered for engagement as BCA.
(x)
This exercise has to be completed for all districts in the country. In view of the roll out of
Direct Cash Transfer in 43 districts w.e.f. 1.1.2013, the following time lines may be
adhered to:
a.
In 43 Pilot Districts
i.
Mapping of Gram Panchayat(s) and BCA/CSC in their service area, and assignment of
sub-service areas, be completed by 28.12.2012. This exercise should clearly indicate
the sub-service area, number of sub-service areas covered by the existing BCAs, to be
covered by existing functional CSCs and sub-service areas which remain to be covered
by BCA/ CSCs.
ii.
Lead Bank Managers in these districts would consolidate the information for the district
on 29.12.2012 while the SLBC Convenors would consolidate the information for the
State on 31.12.2012. This should show district-wise number of sub-service areas in
each district, no. of sub-service areas covered by existing BCAs, no. of sub-service
areas to be covered by existing and functional CSCs, and no. of sub-service areas to be
covered by new BCAs/CSCs.
iii.
SLBC Convenors would send the consolidated the information for their State on
31.12.2012 to this Department at fi-dfs@nic.in.
iv.
b.
It should be ensured that the process of engaging the existing and functional CSCs as
per para 3(v) above, is completed by 31.12.2012. Engagements of CSCs/BCAs in the
Gram Panchayats in the sub-service area, which remain uncovered as per para 3 (vii)
above, should be completed and these CSCS/BCAs become functional by 15.1.2013.
In the remaining districts
i.
Mapping of Gram Panchayat(s) and BCA/CSC in their service area, and assignment of
sub-service area, be completed by 15.1.2013. This exercise should clearly indicate the
sub-service area, number of sub-service areas covered by the existing BCAs, to be
covered by existing functional CSCs and sub-service areas which remain to be covered
by BCA/ CSCs.
ii.
Lead Bank Managers in these districts would consolidate the information for the district
on 20.1.2013 while the SLBC convenors would consolidate the information for the State
on 25.1.2013. This should show district-wise number of sub-service areas, no of subservice areas covered by existing BCAs, no. of sub-service areas to be covered by
existing and functional CSCs, and no. of sub-service areas to be covered by new
BCAs/CSCs.
iii.
SLBC Convenors would send the consolidated information for their State on 31.1.2013
to this Department at fi-dfs@nic.in.
iv.
It should be ensured that the engagement of CSCs/BCAs in the sub-service area which
remain uncovered as per para 3 (vii) above is completed and these CSCS/BCAs
become functional by 31.3.2013. CSC Services India Ltd. would ensure that the required
information is furnished to the banks and that all CSCs are ready in terms of
equipments, connectivity, biometric device, printer, card reader etc.
4.
An electronic file containing the District-wise names of Gram Panchayat(s) along with
their Headquarters is being separately emailed to all banks and SLBC Convenors for use for
undertaking the mapping exercise of Gram Panchayat(s) with BCA/CSC.
5.
This issues with the approval of Secretary (FS)
Yours faithfully,
(Sandeep Kumar)
Director (FI)
Copy to:
1.
2.
CEO, M/s CSC e-Governance Services India Ltd.,
All JS/ Director/ DS in DFS
Mapping of Gram Panchayats for coverage through Branch/ BCA/CSC
( Ref: DFS Letter No. 6/36/2012-FI dated 20th December, 2012)
Sr.
No.
Name
of
State
1
1
2
3
4
Name of District
2
Number of
Gram
Panchayats
( GPs)
3
Number
of Sub
Service
Areas
(SSAs)
4
Existing and Proposed Banking Coverage Through
(No. of SSAs and Panchayats)
Existing Bank
Branch
Existing
Functional
BCAs
Existing
Functional
CSCs
Proposed
BCAs/CSCs
5
6
7
8
SSAs
5a
GPs
5b
SSAs
6a
GPs
6b
SSAs
7a
GPs SSAs
7b
8a
GPs
8b
`
1
The above information will be requied to be filled up by each Branch Manager in the District in respect of his Service Area after the
SSAs have been finalised as per the letter dated 20.12.2012, copy available at http://financialservices.gov.in/. Branchwise
Information will then be consolidated by the LDMs for the district, which will then be consolidated for the State by the SLBC
Convenor.
2
Col 4: A SSA will have 1000-1500 households each, subject to local geographical and population variations. It could be a
panchayat, part of a panchayat or a group of panchayats). Reference para 3(i) of the guidelines dated 20.12.2012
3
Col.5a: No. of SSAs to be covered by existing branches
Col 5b: No. of GPs included in these SSAs( 5a)
Note : The entire Service Area will continue to be served by the Branch for all development activites including implementation of
Government schemes, as hitherto. However, for the purpose of column 5(a) of this format, the SSA would be covered by the
branch and no BCA/CSC would be available. The number of panchayats to be indicated in Col 5(b) will similarly correspond to the
number of panchayats in this SSA being served by the Branch..
4
Col.6a: No. of SSAs to be covered by existing BCAs
Col 6b: No. of GPs included in these SSAs( 6a)
5
Col.7a: No. of SSAs to be covered by existing CSCs
Col7b: No. of GPs included in these SSAs( 7a)
6
Col 8a: Remaining SSAs [Col 4-(5a+6a+7a) ] to be covered by new CSC/ BCA.
Col 8b: No. of GPs included in these SSAs( 8a)
7
Note: In case any large panchayat has more tha one SSA ,it should be included in any one category