International agency to study effectiveness of electronic delivery for govt payments

Monday, 17 June 2013


Payments technology firm and India’s largest business correspondent, FINO PayTech, to support the initiative


New Delhi, 17th June, 2013: International Initiative for Impact Evaluation (3ie) has embarked upon an independent study to evaluate the efficiency of the business correspondent (BC) model in delivering electronic benefit transfer services in India.3ie supports impact evaluation studies in over 40 developing countries and promotes the use of rigorous evidence from impact evaluations in decision making. The study will evaluate FINO PayTech’s doorstep delivery model of BCs in the state of Chhattisgarh.


The significance of the study can be gauged from an RBI report that states an estimated Rs 300,000 crore was disbursed in 2011-12 by the central and some state governments under various welfare schemes. McKinsey & Co in its 2010 report titled “Inclusive Growth & Financial Security–The benefits of e-payments to Indian society” mentions that through electronic payments, governments could save about Rs 1,00,000 crore a year. These are some facts that cannot be ignored.


Given the scale of the task, the 3ie study will undertake a thorough tour of Chhattisgarh where electronic benefit transfer (EBT) through BC model is underway. The study is expected to take 12 months to complete and will focus mainly on two things. First, it will evaluate whether EBT is more effective than physical or other available modes of payments. Second, it will look at the impact on costs and operational efficiency on transitioning to an EBT system.


Elaborating on the importance of the study Shweta Aprameya, Vice President, FINO PayTech Limited said, “EBT through BC model has been operational since 2007, however there is not much research data available to draw conclusions on its effectiveness showcasing its impact. FINO PayTech is pleased to support 3ie in this important project to bring out facts and figures in support of the work delivered by the BC industry in contributing to the government projects on subsidy and benefits. As a pioneer in this space we are happy to bring forward this project with all stakeholders involved and are doing it for practicing and supporting policy formulation in India.”


The findings of this study, with testimonials of beneficiaries, project officials, analysis and insights by industry experts, will be shared with industry stakeholders not only in India but across the globe.


FINO PayTech, a pioneer in tech-enabled branchless banking and the largest BC player in the country, will provide local support to 3ie in this endeavour. It will facilitate 3ie researchers’ field visits, meetings with project officials, customers, agents across the state during the entire duration of the study. It may be noted that FINO PayTech operates in the state of Chhattisgarh disbursing MGNREGA payments to beneficiaries through the EBT mode in 10 districts in addition to providing basic banking services to over 25 lakh customers through a network of over 250 agents.


About FINO PayTech Limited:

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 un-served segments of the population. It services over 63 million customers spread across 464 districts in the country through a network of 46000 transaction points 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. (


About International Initiative for Impact Evaluation (3ie):

3ie funds impact evaluations and systematic reviews that generate evidence on what works in development and why. Evidence on development effectiveness can inform policy and improve the lives of poor people.3ie is supported by the Bill and Melinda Gates Foundation, UKAid, Hewlett Foundation and other donors. More information can be found at