Presentation by:
Mr. B. Samba Murthy
Director, IDRBT.
Website: www.idrbt.ac.in
Email: bsambamurthy@idrbt.ac.in
INSTITUTE FOR DEVELOPMENT AND RESEARCH
IN BANKING TECHNOLOGY
RBI-OECD Workshop
Delivering Financial Literacy
March22-23, 2010. Bangalore
“Established by RBI in 1996 for
promoting use of technology in
Banking Sector.”
MISSION
Explore and Exploit technology for common
good
FINANCIAL EXCLUSION – A FEW DIMENSIONS
Over 100 Million house holders had no
formal access to credit.
 Nearly 600 million new accounts to be
opened.
 Out of 6,25,000 villages there are bank
branches only in about 30,000 villages.

REAL CHALLENGE
Provide basic financial services to over 300
million excluded people spread over 600,000
villages.

Use of I.T. is inevitable to provide access to
formal Banking services.
BUSINESS NEEDS
Increase outreach
 Scale up number of users
 Reduce Opportunity cost/time
 Ensure Reliability
 Integrity of Account and Information
 Ensure Security
 High Degree of Assurance
 Inter-operability

ROLE OF IDRBT IN FINANCIAL INCLUSION
Encourage Banks to develop an appropriate
ICT platform.
 Facilitate development of common and interoperable standards for critical components
of ICT.

IDRBT INITIATIVES





Working closely with UIDAI,NPCI.
Developed Common and Inter-operable standards for
smartcards. Accepted by Indian Banking Association
(IBA).
Common and Inter-operable standards for Micro. ATM
in final stages. Working with UIDAI,NPCI,IBA,RBI.
Developed inter-operable standards for mobile
banking in association with Banks, Telco, Service
Providers. Lab tests are in progress at IIT Chennai.
Working with NABARD-FITF to technically evaluate
proposals for viability GAP funding in ICT-FI initiatives
of Banks.
MENU OF SOLUTIONS
Business Correspondent Enabled.
 Smart Card Based
 Mobile Banking – (Bank Led Model)

SMART CARD BASED SOLUTIONS
(OFFLINE)
Customer
Bank
Terminal
F. I. Server
Core Banking
Solution
MOBILE BANKING
Over 500 million subscriber base.
 Low transaction cost.
 Regulatory Framework in place.
 Bank Led Model to begin with
collaborative models are explored.

MOBILE BANKING SOLUTION BANK LED MODEL
Settlement
Agency
UIDAI
NPCI
Bank A
Bank B
Merchant PoS
BC Micro ATM
Customer
( Smart Card / Mobile Phone)
OFF US CHART OF UIDAI
AGENCIES INVOLVED IN IMPLEMENTATION
IDRBT – Institute for Development and
Research in Banking Technology
Role: Technical Standards / Frameworks
Development, Inter-operability and security.
NPCI – National Payment Corporations of
INDIA.
Role: Build and operate switch for Inter-Bank
transactions and settlement.
AGENCIES INVOLVED IN IMPLEMENTATION…CONTD
UIDAI—Unique Identification Authority of
INDIA.
Role: Build and operate bio metric database for
the entire population. Helps in authentication
and Identity Management.
IBA– Indian Banks Association.
Role: Propagate Standards / Frameworks.
AGENCIES INVOLVED IN IMPLEMENTATION…CONTD
I.I.T. – Indian Institute of Technologies
--Chennai and Kanpur
Role: Help Develop frameworks and conduct lab
tests.
R.B.I – Reserve Bank of INDIA.
Role: Regulatory Framework to ensure safety
and security.
EMERGING SCENARIO

Branchless Banking Model
RESERVE BANK OF INDIA

RBI PLAYS A CATALYSTIC ROLE AND
ORCHESTRATES THE EVOLUTION OF
BRANCHLESS BANKING TO ACHIEVE FINANCIAL
INCLUSION