CREDIT DEPARTMENT (OPERATIONS)

1
VIJAYA BANK- IT ENABLED FINANCIAL INCLUSION
2
VIJAYA VIKAS SMART CARD

• A Pilot Project of IT enabled Financial Inclusion
  programme viz., Vijaya Vikas Smart Card , through
  Business Correspondent model with smart card /
  Hand Held Machine launched on 20.10.2008 in
  Mandya district in Karnataka ,one of the Lead
  districts of the Bank.
• The Pilot covers 7 villages attached to base
  branch-Mandya branch- Bilidegalu,
  Upparakanahalli, Gudigenahalli, Chokanahalli,
  Karadikooppalu, Habbadamaranaahalli and
  Hampapura.
• The villages are located at around 13 Kms from
  the base branch.
• The technology solution is by M/s Integra Micro
  Systems ( P) Ltd., Bangalore
• The Business Correspondent is M/s i 25 Rural
  Mobile Commerce Services, a Section 25 Company
  promoted by the above technology service
  provider.

3
VIJAYA VIKAS SMART CARD

• The above vendor was considered as L1 for smart
  card / HHM solution and BC services in Karnataka
  by the Technical Committee of major bankers
  formed at the initiation of SLBC for the purpose
  of facilitating bankers to select suitable
  vendors for IT enabled FinInc. Programme in the
  State .
• The BC ( Section 25 company) has in turn engaged
  two local representatives to work on behalf of
  them as Field BCs in the villages.
• The bio metric smart cards of 4 KB are used which
  can accommodate 4 modules. The card has photo and
  address of the card holder on the face.
• The HHM has got voice guidance in addition to
  printing of receipt. In addition to HHM with the
  field BCs , one HHM is installed at the branch
  also to enable the card holders to transact at
  the branch premises.

4
VIJAYA VIKAS SMART CARD

• Per day / per card limit of withdrawal / deposit
  of cash is Rs.2000/-
• Cash holding with the field BC is fixed at
  Rs.5000/- for the present which can be increased
  / decreased by the branch based on the
  transactions carried out by the BC.
• The facilities available for the card holders are
  presently, withdrawal / deposit of cash into
  Vijaya Saral Savings A/c ( No Frills account),
  balance enquiry, statement of account of last 10
  transactions.
• The duties of field BC include filling up of the
  SB a/c opening form ( simplified No Frill account
  form ), collecting KYC details and carrying out
  the transactions with the help of HHM.
• The vendor has given suitable training to the
  field BCs and they are independently handling the
  HHM / smart card transactions / day begin / day
  end process / generation of transaction summary /
  dey end report etc.
• Each Field BC is provided with a cash box and
  also a cash scroll which they have to maintain
  daily to enable the branch officials to verify.
  The BCs copy of the transaction receipt, daily
  transaction summary sheet and copy of daily cash
  scroll are handed over by the BC to the branch on
  weekly basis and are maintained at the branch
  level chronologically for verification purpose.

5
VIJAYA VIKAS SMART CARD

• In order to create awareness of the scheme to the
  villagers, before launching, demonstrations were
  conducted at different centres in the villages
  particularly regarding maximum cash limit upto
  which the transaction can be done with the field
  BC, need for compulsorily obtaining the receipt
  for the transactions done , voice guidance
  confirmation, the type of services available from
  the BC etc.,
• Proper grievance / complaint redressal system has
  been put in place and notice in this regard has
  been displayed prominently in the work places of
  BC.
• Security deposit _at_ Rs.10000/- per field BC has
  been obtained from the BC.
• For amounts exceeding the per day / per card
  limit of Rs.2000/-, the card holders have to
  visit the branch for carrying out the
  transactions through the HHM installed at the
  branch premises.
• The day end process is done on daily basis and if
  not done for 48 hours, the HHM stops further
  transactions. Through day begin / day end
  process the transactions are received / sent from
  / to the vendors server .
• The terminal based transactions are sent by the
  vendor to the Bank in encrypted form on daily
  basis for uploading into CBS in the Bank server
  and similarly the non terminal based transactions
  are sent by the bank to the vendor for uploading
  in the respective servers. Once in a week, the
  balances in both the servers are reconciled.

6
VIJAYA VIKAS SMART CARD

• There is good response from the villagers for the
  scheme. While around 70 card holders were the
  existing No Frill account holders, another 530
  new accounts were opened after launching of the
  project.
• As the cash transactions are done at the village
  level itself , the customers more particularly
  the women beneficiaries are finding it very
  convenient to deposit cash / withdraw cash,
  avoiding visiting the branch situated at around
  13 Kms away.
• In 165 cards issued in the first phase, in the
  first two months around 475 credit transactions
  ( cash deposit ) took place amounting to
  Rs.90975/- and around 160 debit transactions (
  cash withdrawal) amounting to Rs.65280/-. The
  transactions would improve with the stabilisation
  of the scheme.
• The branch officials / RO officials are regularly
  visiting the villages to get the feed back on the
  activities of the BC and also on the functioning
  of the Project and to sort out problems, if any .
  

7
VIJAYA VIKAS SMART CARD
Cost involved in the Project
8
VIJAYA VIKAS SMART CARD

• In Karnataka , the Bank is also participating in
  the smart card based payment system for social
  security pension / NREGP wages where Pilot is
  being implemented to start with in three
  districts viz., Bellary, Gulbarga and
  Chitradurga.
• The Bank is replicating the Pilot experience in
  other two lead districts and also in other
  centres also.

9
OTHER IT INITIATIVES IN RURAL / SEMI URBAN CENTRES

• The Bank has introduced ATM enabled Kisan Credit
  Card a photo card linked to KCC A/c of the
  farmer. Cash can be drawn through the ATM from
  KCC a/c upto Rs.20000/- per day within the DP and
  also from merchant establishments , upto
  Rs.25000/- per day.
• Out of 1066 branches of the Bank, 941 are under
  CBS of which 343 are in rural and semi urban
  centres. In rural centres with power problem,
  solar power is used for CBS in 85 locations. In
  centres with connectivity problems, V-Sat /
  wireless Radio Frequency are used in 93
  locations.
• All our branches in the North Eastern States are
  under CBS.
• Local language is used in the ATM screen in
  Karnataka and it will be extended to 7 more
  States.
• Out of 353 ATMs, 60 are in rural and semi urban
  centres.