Financial Inclusion · ServeTM

Implementation of JAM Based Transfers Begins

This is a story of how technology can impact the personal finance of people even at the bottom of the pyramid. Easy access to banking services, while also bringing in transparency and preventing leakages, digital rural banking promises to be a game changer.

JAM based transfers (technology-enabled transfer of benefits using thePrime Minister Jan Dhan Yojana + Aadhaar + Mobile Number) has begun.  IDFC Bank has partnered the government of Andhra Pradesh, Krishna District, to enable Direct Benefit Transfer that are within easy reach of citizens in every village. 

The partnership is claimed to be the first to demonstrate the implementation of JAM based transfers (technology-enabled transfer of benefits using thePrime Minister Jan Dhan Yojana + Aadhaar + Mobile Number).

It also makes IDFC Bank the first to deliver Direct Benefit Transfer like social security pensions, and in coming days, others schemes like scholarships, LPG subsidies, MGNREGA benefits etc., through an interoperable AEPS Micro ATM model, at scale, in a district, in a concentrated manner. IDFC Bank will soon implement this model for the public distribution system (PDS) as well, making PDS payments cashless, thereby taking cashless digital banking in rural India to the next level. 

The first interoperable social security pension was drawn through an IDFC Bank AEPS Micro ATM on May 1 at Ganapavaram, Mylavaram mandal by Shri Samdipaamu Guravayya in Krishna district. Nearly 32,000 pensioners will be using the IDFC Bank Micro ATM infrastructure to access their benefits in coming days. Over time, the concentrated coverage of banking services at a village level offered by IDFC Bank is expected to touch the lives of 46 lakh citizens in Krishna district alone.

The bank’s Micro ATM is owned and operated by women members of the self help groups (SHGs) approved for financial support by the government of Andhra Pradesh. IDFC Bank along with the Krishna district administration, has identified, trained, assessed and certified SHG members as individual Banking Correspondents (BCs). For some members, a Micro ATM ownership is the start of a new livelihood micro enterprise, while for others – it means the addition of a new revenue stream. An IDFC Micro ATM agent will cater to customers at Panchayat offices (in the first few days of every month) and later from their respective residences/work areas. These Micro ATMs offer all basic banking services to customers of any bank including deposits, withdrawals and transfers.

Citizens of Krishna district can now draw their entitlements in their neighbourhood itself, by transacting on any of the 500 Micro ATMs deployed by IDFC Bank across villages.

IDFC Bank’s interoperable Micro ATM functions like a ‘Bank-in-a-Box’, enabling digital transactions, withdrawals and DBT for customers of close to 3000 banks. It also provides instant account opening and activation, working on multiple identifiers including Aadhaar-based authentication, mobile numbers, debit cards and bank account numbers.

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