Newsletter, October 2009 - IDRBT
Newsletter, October 2009 - IDRBT
Newsletter, October 2009 - IDRBT
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BANKING FOR MASSES : Smt. Usha Thorat, Shri. B. Sambamurthy, Dr. K. Ramakrishnan<br />
and Dr. K. Unnikrishnan, at the workshop on Open Standards for Financial Inclusion held on Feb. 5-6, <strong>2009</strong><br />
OPEN STANDARDS FOR FINANCIAL INCLUSION<br />
MANY banks have started implementing Financial Inclusion on February 05 - 06, <strong>2009</strong>.<br />
financial inclusion schemes using<br />
information and communication Consequent to the deliberations, a "Technical<br />
solutions. Broadly, two technologies have been Committee on Open Standards for Financial<br />
explored; while one is smart card based, the other Inclusion" has been constituted comprising of<br />
rides on mobile telephony.<br />
bankers, technical experts from academia and<br />
government. This committee has been working for<br />
However, almost all banks, barring a couple have not over five months and the draft open standards for<br />
been able to roll out the pilots. This is largely Smart Card based Solutions for Financial Inclusion<br />
attributed to lack of common standards which makes has been released for public review at www.idrbt.ac.in.<br />
large-scale procurement and implementation Subsequent to the review, the final standards will be<br />
difficult, and even renders intra-bank operability released.<br />
difficult. Interface with CBS platform would also pose<br />
problems.<br />
A migration path for adoption of these standards for<br />
banks and certification for adherence to the standards<br />
Common standards would facilitate pan India<br />
are also envisaged. The smart card based solution<br />
deployment by banks; bring in scale benefits in<br />
standards relate to the following areas - card<br />
procurement and deployment; help in accelerating<br />
numbering scheme, smart card hardware, smart card<br />
ICT deployment and avoid vendor lock in for all<br />
operating system, smart card architecture, bank<br />
technology components; and enhance customer<br />
terminal functionality and security framework (key<br />
convenience by providing inter-bank access.<br />
management system).<br />
In order to address these issues, the Institute along<br />
with the Indian Banks' Association teamed up with a<br />
few select banks like State Bank of India, Punjab<br />
National Bank, Union Bank of India, Corporation<br />
Bank, South Malabar Grameena Bank, UCO Bank,<br />
NABARD and institutions like Indian Institute of<br />
Technology, Kanpur and National Informatics<br />
Centre to organise a workshop on Open Standards for<br />
9<br />
These standards are likely to facilitate a quick and<br />
efficient rollout of the financial inclusion schemes,<br />
provide convenience to customers by making bank<br />
terminals interoperable and ensure vendor<br />
independence for banks. The proposed UIDN<br />
number/standards would compliment these smart<br />
card standards particularly by way of KYC<br />
compliance.