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 SaiRamVenkatesha

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 Electronic Benefits Transfer (Andhra Pradesh & Telangana) 5. DBT (Direct Benefits Transfer) 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 (Rural PO) 1,29,553 2.20 lakh Departmental Employees 12,999 computerized and networked Post Offices. 2.80 lakh GDS Employees On an average, a post office covers an area of 21.2 sq. km and serves 7,174 people each po. 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 ( DOP 13 districts in AP, Telangana DOP 6 Districts Karimnagar & khamman dist Jan dhan yojna experiment) Cost effective model in the larger context 1.5 % service charges in AP & Telangana. 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: 312 millions Available in 1,54,946 POs (16,144) Balance Rs.6,03,169 Millions MGNREGS wage Payments Pensions Indiramma Housing Scheme All India (Expect AP) Kerala, T.N., Karnataka, Rajasthan, H.P. Gujarat A.P & Telangana A.P. $ Telangana No. of Accounts: 58 Million Amt disbursed: > Rs.271,Million > 97,972 POs >5.3 ml Pensions MO /Month Amt paid Rs.150 Crs `1.5 million SB Accounts 53 lakh Accts : Amt Paid - Rs.2092 Cr 450 Crs AP / 375 crs Telangana No. of SB Accounts: 6.4 lakhs Amt disbursed: Rs. 1700 Cr ( four years) 14, 683 Po ( Online verification public) 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 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 9

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 10

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 11

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 12

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 13

4 Post Office EBT Model (A.P %Telangana) 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 48 Lakh 1.39 Cr Amount Disbursed 1908 Cr 1865 Cr 3773 Cr AP State Telangana Total Districts 13 6 19 Post Offices 9698 2346 12044 No. of Wageseekers 45 Lakh 16 Lakh 61 Lakh Amount Disbursed 2022 Cr 644 Cr 2576 Cr India Post 14

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 15 India Post 15

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 17

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 18

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

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 21 AUA Server APO India Post

DBT through Post Office - Process-1 Direct benefits transfer DBT programme builds on foundation provided by Aadhaar, allowing for direct, time-bound transfers of benefits to people. On 1 January 2013, the government of India launched an ambitious Direct Benefits Transfer (DBT) programme. 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 24

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

DBT Launch in Chittoor, 30.3.2013 by Hon ble CM of AP & MoRD, MoS 26 India Post

India Post 27