India Post - Leveraging the power of Rural Post Office Network for EBT & DBT

SaiRamVenkatesha India Post - Leveraging the power of Rural Post Office Network for EBT & DBT Presentation by S.V.Rao, I.Po.S. Asst. Postmaster General (FS & BD), O/o Chief Postmaster General, Andhra Pradesh Circle.

Plan of Presentation 1.India Post - Network 2. India Post Leveraging Rural Post Office Network 3. MGNREGA - India Post 4. Post Office EBT Model 5. DBT thro Post Offices 6. Positive Outcomes & Appreciation India Post 1

Plan of Presentation 1.India Post - Network 2. India Post Leveraging Rural Post Office Network 3. MGNREGA - India Post 4. Post Office EBT Model (Andhra Pradesh) 5. DBT thro Post Offices Chittoor Model 6. Implementation Issues & Research Questions India Post 2

1 India Post - Network Urban POs (10.46%) All India Post Offices 1,55,204 Rural POs (89.54%) Departmental Post Offices 25,651 Extra Departmental Post Offices 1,29,553 2.20 lakh Departmental Employees 2.80 lakh GDS Employees 12,999 computerized and networked Post Offices. On an average, a post office covers an area of 21.2 sq. km and serves 7,174 people. 3 3 India Post

1 India Post - Network A.P. Postal Circle (A.P. & Telangana States) Urban Pos (8%) Post Offices 16142 Rural POs (92%) Departmental Post Offices 2343 Extra Departmental Post Offices 13704 16,448 Departmental Employees 29,127 lakh GDS Employees 2437 computerized and networked Post Offices. On an average, a post office covers an area of 29.94 sq. km and 4 serves 4,775 people. 4 India Post 4

Plan of Presentation 1.India Post - Network 2. India Post Leveraging Rural Post Office Network 3. MGNREGA - India Post 4. Post Office EBT Model (Andhra Pradesh) 5. DBT thro Post Offices Chittoor Model 6. Implementation Issues & Research Questions India Post 5

2 India Post Leveraging Rural Post Office Network Trust of the local people Intimate knowledge of people and locality Basket of financial services for households Cost effective model in the larger context Experience of handling large sums of money India Post 6

2 India Post Leveraging Rural Post Office Network Some existing Financial Services of India Post SHGs, Women & Child Development, Tribal Welfare Informal Sector Workers SSS Item of work Coverage Volumes ( AP Circle ) Existing PO SB All India No. of SB Accounts: 31.20 Cr (5.56 Cr) Available in 1,52,946 POs (16,144) Balance Rs.6,03,169 Cr (1,08,570 Cr) MGNREGS wage Payments Pensions Indiramma Housing Scheme All India (Expect AP) A.P. Kerala, T.N., Karnataka, Rajasthan, H.P. Gujarat A.P. A.P. No. of Accounts: 5.8 Cr Amt disbursed: > Rs.31,628 Cr > 97,972 POs Accts 2 Cr : Amt Rs.12,964 Cr : 16,144 POs >55 lakhs ml SB accounts Amt paid Rs.800 1000 Crs 53 lakh Accts : Amt Paid - Rs.2092 Cr No. of SB Accounts: 6.4 lakhs Amt disbursed: Rs. 960 Cr 14, 683 POs India Post 7

Plan of Presentation 1.India Post - Network 2. India Post Leveraging Rural Post Office Network 3. MGNREGA - India Post 4. Post Office EBT Model (Andhra Pradesh) 5. DBT thro Post Offices Chittoor Model 6. Implementation Issues & Research Questions India Post 8

3 MGNREGA India Post MGNREGA Post Offices Vs Banks (All India) YEAR No. of Accounts Opened Total A/cs Banks Post Office PO % 2009-10 9,37,85,017 4,99,88,267 4,37,96,750 47 2010-11 9,88,26,075 5,51,77,236 4,36,48,839 44 2011-12 8,28,01,249 3,81,16,213 4,46,85,036 54 2012-13 8,26,02,815 3,79,17,015 4,46,85,800 54 2013-14 10,12,51,233 6,19,50,502 3,93,00,731 39 2014-15 (Jan 15) 10,12,50,195 6,19,50,418 3,92,99,777 39 TOTAL 56,05,16,584 30,50,99,651 25,54,16,933 45 YEAR Amount Paid (Rs.in Cr) Total Amt Paid Thro' Banks Thro' Post Offices PO % 2009-10 22,151 13,225 8926 40 2010-11 20,292 12,350 7942 39 2011-12 17,567 9,200 8366 48 2012-13 10,693 5,149 5543 52 2013-14 23,438 16,573 6865 30 2014-15 (Jan 15) 19,303 13,851 5451 28 TOTAL 1,13,447 70,350 43,096 38% India Post 9

3 MGNREGA India Post MGNREGA A.P. Circle Experience Year No. of SB Accounts (No. in Cr) Amount of wages disbursed (Rs. in Cr) 2007-08 0.79 428 2008-09 1.01 1276 2009-10 1.18 2633 2010-11 1.30 2917 2011-12 1.37 1330 2012-13 1.41 1320 2013-14 1.94 1277 2014-15 (Dec'14) 2.00 1783 TOTAL 2.00 12964 India Post 10

Plan of Presentation 1.India Post - Network 2. India Post Leveraging Rural Post Office Network 3. MGNREGA - India Post 4. Post Office EBT Model (Andhra Pradesh) 5. DBT thro Post Offices 6. Implementation Issues & Research Questions India Post 11

4 Post Office EBT Model (A.P.) Factors leading to the initiative External AP Govt. ICT Model for MGNREGS implementation led to capacity-building for electronic fund flow & real time MIS Internal Over 13 million Wage Accounts manually handled!! To avoid delay in payments To avoid fraudulent payments To ensure real time MIS To address competition from Banks! India Post 12

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4 Post Office EBT Model (A.P.) Features of PO EBT Model Tripartite Agreement between GoAP, DOP and AP Online (Technology Partner) Online fund flow Post Office Savings Bank Account Local SHG women as Postal Franchisee/CSP in GPs without PO (Now thro DoP GDS officials) Robust Monitoring & Alerts System India Post 14

4 Post Office EBT Model Role of Technology Partner (APOnline) Ensure Development & maintenance of software application Setting up and maintenance of Data Centre Deploying Point of Transaction Devices (POTDs)/ Micro ATMs. Develop and maintain Public Portal Service Provide Field level technical support India Post 15

4 Post Office EBT Model (A.P.) EBT/DBT - Coverage.. MGNREGS Wage Payments Social Security Pensions AP State Telangana Total Gram Pachayats 12934 3852 16786 Districts 13 6 19 Post Offices 9698 2346 12044 No. of Wageseekers 91 Lakh 45 Lakh 1.36 Cr Amount Disbursed 1850 Cr 1810 Cr 3660 Cr AP State Telangana Total Districts 13 6 19 Post Offices 9698 2346 12044 No. of Wageseekers 39 Lakh 15 Lakh 54 Lakh Amount Disbursed 1448 Cr 644 Cr 2092 Cr India Post 16

1. Generation of Pay Order at MCC 2. Uploading of generated Pay Order to NREGS Server 3. Authorisation of FTO by CRD 4. Confirmation of remittance by the Bank 10. Payment of Wages & Upload data PO-EBT Model Cycle of Wage & Pension Payments 5. Pushing the Pay Order to AP Online Server 9. Supply of Cash 8. Downloading Deposit data to the POTDs 7. Crediting wage amounts to individual SB accounts 6. Approval of Pay Order by the Head Postmaster after receipt of FTO 17 India Post 17

Disbursement of MGNREGS Wages and SSPensions (Portability-Disbursement at any BO within the SO) 6 7 SO/BO 6 APOnline Data Centre 3 8 2 Fund Transfer HO 5 2 2 2b Bank 2 Muster Roll (MCC) 1 FTO to Bank MGNREGS SDC SSP Server India Post

4 Post Office EBT Model (A.P.) Role of Technology Partner Public Portal (appost.aponline.gov.in) India Post 19

Plan of Presentation 1.India Post - Network 2. India Post Leveraging Rural Post Office Network 3. MGNREGA - India Post 4. Post Office EBT Model (Andhra Pradesh) 5. DBT thro Post Offices 6. Implementation Issues & Research Questions India Post 20

DBT Launch in Chittoor on 30.3.2013 by Hon ble CM of AP & MoRD 21 India Post

DBT (Aadhar Enabled Payments) Coverage 19 Dists (AP 13 : TS 9) under DBT (AEPS) 22 India Post 22

PO based Aadhaar authenticated benefit payments NPCI 6 BO 5 6 GPRS SO 4 AUA - DoP APOnline HO 4 Online Fund Transfer 6 7 3 ASA BSNL 6 CIDR UIDAI Nodal Bank FTO to Bank 2 Muster Roll at Worksite GP/ Mandal 1 GoAP Data Center India Post

Aadhaar based authentication & payment process * For SSP, steps 12&13 are not there. Total balance in the account shall be paid Aadhar Server (CIDR) 9 Response Code Match, Mismatch, No Aadhar No Beneficiary 16 POTD Aadhar No Finger Print 8 Trans Confirmation 15 BSNLServer (ASA) 10 * 13 Withdrawal Amount Show Balance if Match 5 Finger Print 12 14 Aadhar No Trans details Finger Print Response Code, Balance if match 11 6 UIDAI No & FP 7 Response Code 1 Show Details 4 Entry of Acct No UIDAI No, Benf details 3 2 Sends Acct No 24 AUA Server APO India Post

DBT through Post Office - Process-1 1. At Mandal Computer Center (MCC) Worker attendance and work progress reports are entered on the GoAP NREGA Portal. MCC generates Pay Orders containing Job Card No., UID/EID, PO SB Account No., Amount of wages to be paid 2. GoAP NREGA Database then consolidates all the pay orders entered at various MCCs. 3. GoAP NREGA Server Sends electronic file comprising Job Card No., UID/EID, PO SB Account Number, Amount to be paid to APOnline. Transfers Funds to the Nodal bank & then to Head PO 4. APOnline transfers this data to Dept of Post i.e. to HO/SO/BO/GDS India Post

DBT through Post Office - Process-2 5. DoP places sufficient cash at SO and subsequently at BO/Postal Franchisee location 6. Wage seeker (Beneficiary) approaches BO/GDS Places his finger prints for authentication on UIDAI compliant PoTD/Micro ATM Device. Micro ATM Device transmits the Finger Print Data in encrypted format (as specified by UIDAI) To Dept of Posts (AUA-Authenticated User Agency) through APOnline Server To BSNL (ASA-Authenticated Service Agency) Server to CIDR (Central Identities Data Repository) for authentication. On receipt of successful authentication from CIDR(Central Identities Data Repository) Data flows back from ASA (BSNL) to AUA (DoP) to Micro ATM. BO/GDS disburses the amount to wage seeker 7. Real time Direct Hit of transaction details to NREGS Server India Post

Plan of Presentation 1.India Post - Network 2. India Post Leveraging Rural Post Office Network 3. MGNREGA - India Post 4. Post Office EBT Model (Andhra Pradesh) 5. DBT thro Post Offices 6. Positive Outcomes & Appreciation India Post 27

UIDAI -Authentication Transactions (DoP vs. Banks) Success Trend (A.P + Telangana) Paying Agency Dept. of Posts...April-14 May-14 June-14 July-14 Success (in Lakhs of UIDs) % Success % Success % Success % 19.81 96% 31.76 97% 31.36 97% 35.15 96% APGVB 0.41 85% 0.03 52% - - - - AXIS Bank 2.67 87% 3.06 90% 2.88 90% 2.25 88% ICICI Bank 1.43 83% 1.84 84% 1.82 82% 1.58 82% Corporation Bank Total for Rural Development - - - - - - 1583 82% 24.35 94% 36.7 95% 36.06 95% 39.0 95% 28 ** Successful unique UIDs in Lakhs (AP + Telangana) India Post

Electronic/Direct Benefit Transfer Program Positive Outcomes GoAP, Rural Development Dept facilitated studies JPAL Study, 2011-12 Transparency in scheme administration Eliminated /reduced leakages, delays, bogus/ duplicates, falsification Ensured timely payment directly to intended beneficiaries, Reduced transaction costs CGAP, World Bank Study, 2012-13 PO leveraging existing institutional set up PO is Cost effective model Experience of handling large sums of money People Resources India Post

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DBT Launch in Chittoor, 30.3.2013 by Hon ble CM of AP & MoRD, MoS 31 India Post

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