FINO PayTech brings banking to the doorsteps of 50 lakh rural people in UP

Business correspondent agents with hand held micro ATMs change rural banking landscape

•    Close to 50 lakh people in more than 50 districts are now part of mainstream banking, thanks to accounts opened and serviced by bank-led business correspondent FINO PayTech

•    FINO PayTech enables access to savings and withdrawal services through smart card based finger print biometric authentication on Point of Transaction  (POT) machine

•    RBI mandated banks to introduce 4 products/ services – savings, credit, remittance and
insurance – to the rural customers. FINO PayTech facilitates the reach of these services through agent network.

U.P., 20 December, 2012: FINO PayTech Ltd., India’s largest Business Correspondent (BC) service provider, has brought banking services to around 50 lakh people in Uttar Pradesh by offering them access to an entire range of banking and financial services at their doorstep. The company received the mandate from Union Bank of India to open and service NFAs (No Frills Accounts) and since 2007 close to 20,000 gram panchayats in more than 50 districts of the state have benefited from branchless banking services provided by FINO PayTech.

It may be noted that as per 2006 RBI regulations on Financial Inclusion, NFAs have relaxed KYC norms that proved beneficial to a large segment of rural and poor folks. This has enabled them to enjoy banking services which are more personalized than those offered to urban customers. Further, the regulator mandated banks to provide at least 4 products / services to rural customers – savings, credit, remittance and insurance. As of now people in UP are able to do savings and withdrawal transactions. They can also get statements on the past 10 transactions and receipt after every transaction. This is a marked change from the time when people had not even seen or heard of a bank in many parts of the state.

Soon they would get Recurring Deposit (RD) and Overdraft (OD) services. The Biometric Smart Card provided by FINO PayTech works as passbook and ATM card for the account holders. A strong network of more than 2500 FINO Pay Tech bandhus provide branchless banking / door step banking services to the 50 lakh people in UP, thus bringing them under the formal banking fold.

Ashish Ahuja, Vice President, FINO PayTech Limited, said, "Access to banking services is the key to the overall well being of a state or family. Branchless banking made possible by BC agents in the rural areas of UP ensured access to a range of financial services. The technology platform and agent network of FINO PayTech provides greater reach in remote areas and offers secure banking services. This revolution has taken its time and our Bandhus have played an important role in creating trust among people and inculcating a habit of saving in a bank account. Of the 50 lakh bank accounts opened, 80% do savings, rest get their NREGA and pensions. Small savings go a long way in changing the financial health of the family."

"Awareness on financial services is an important element for improving financial health of poor families. In this context, FINO Pay Tech's agent network is doing its bit by creating awareness among the people on inculcating the habit of saving and financial planning through regular customer interactions. We have even painted the walls of bandhu houses in some villages with images and messages on the various services offered. While there is still a long way to go, it is encouraging to know that people in UP on an average are able to save a few hundred rupees every month", he added.

In addition to savings bank account, FINO PayTech offers micro insurance policy in UP. Accidental Insurance policy is made available in association with HDFC Ergo. Under this scheme, a rural poor individual is insured for an accidental death cover of Rs. 1 lakh for a nominal annual premium of Rs. 100. Micro insurance provides immense financial relief to the family and helps them avoid falling into vicious debt traps. No hassles and medical test with immediate activation of the policy through technology helps in quick and timely settlements in case of accidental deaths.

Financial empowerment is further promoted by FINO PayTech through its range of value added services like utility bill payments, mobile & DTH recharges, train ticket booking, PAN card enrolments in association with NSDL. The PAN card would be issued within 25 days of registration at a nominal fees of Rs. 122 per card, which will be payable by the customer.

Savings bank account, micro insurance and other services are available in most of the districts in the State. However Sonbhadra and Sant Ravi Dass Nagar districts account for maximum number of customers.

About FINO PayTech:

FINO PayTech is India’s largest business and banking technology platform with extensive service delivery network enabling Financial Inclusion. FINO PayTech, created by a consortium of banks and other sectoral entities, works closely with banks, insurance companies and Governments in facilitating access to financial services to the unbanked and underserved segments of the population. It services over 50 million customers spread across urban and rural areas in the country providing a range of financial services viz savings, remittance, insurance, credit etc. FINO PayTech aims to provide financial services using all available platforms that helps reach a large section of the population in an affordable way. (www.finopaytech.com)