Financial inclusion

Financial inclusion


    Digital Finance Inclusion, Awareness and Access:

    Lack of awareness about digital financial literacy is a major challenge in the country, especially among the rural population, in light of demonetisation by the government and hence plans to make India a cashless economy. There was an urgent need to create awareness regarding digital financial services to citizens, especially in rural and semi-urban areas. Launched by the government in November 2016 under "CSC's Digital Finance: Awareness and Reach for Rural India", CSCs address various mechanisms, including government policies and digital finance options available to rural citizens. Awareness was able to conduct sessions to enable. Digital financial services such as IMPS, UPI, Bank PoS machines etc. The project was run by CSC SPV in campaign mode until March 2017. CSC SPV was entrusted with the registration of 100 lakh citizens and the competence of 25 lakhs. Small traders under this program. As of March 2017, CSC SPV registered over 2 crore citizens and enabled around 21 lakh merchants.

    'VLE Bazaar' - a rural e-commerce venture

    VLE Bazaar is an online market platform dedicated to unique Indian handicrafts and cottage products that are handmade, ethnic, organic and natural. It aims to address the potential of the rural economy to lack of good jobs and reliable income, low productivity, informality, ineffective organization and encourage participation of rural people in decision making. The VLE market is working to bridge this gap and provide a much needed platform between rural artisans and urban consumers. Purchased products are characteristic of the particular region with an element of traditional knowledge, local art, modern technology and design input. The aim of the VLE market is to develop craft-based enterprises and explore new and commercially sustainable models of livelihood production.

    The VLE market listing includes:
    • TERI - The Energy and Resource Institute Products 
    • leather products
    • Publication 
    • Jute bags from west bengal 
    • Organic Products of India 
    • Stove & Solar LED 
    • Pulses and Spices 
    • Pickle 
    • Icecraft products 
    • Organic tea 
    • SOCHE NGO Handmade Products 
    • Shawls from Uttarakhand and Nagaland 
    • Agra Shoes 
    • Madhubani painting 
    • Handicrafts jute items from west bengal 
    • Saffron and Kahwa from J.K.

    Skill Development:

    CSC SPV has started a skill development course -
    • To provide skill training to the youth of rural areas 
    • Certifying them, and 
    • Making them suitable for self-employment opportunities or for self-employment.

    Initiatives under skill development:
    • Skills of Persons with Disabilities (PwDs) 
    • Recognition of Pre Learning (RPL) under PMKVY

    CSC as GST facilitator:

    The Goods and Services Tax (GST) is the new system of taxation in India that has merged many individually applicable taxes into one tax. It was introduced as the Constitution (One Hundred and First Amendment) Act 2016 after the passage of the Constitution's 101st Amendment Bill.


    GST is a comprehensive indirect tax on manufacturing, sales and consumption of goods and services across India to replace the taxes levied by the central and state governments.


    Although the GST system will have a G2B portal for taxpayers to access the GST system, the GST facility provider or GSP is one of the ways to interact with the GST system. The taxpayer through the GST facility provider, which will provide all user interfaces and facilities through desktop, mobile and other interfaces, will be able to interact with the GST system.


    CSC SPV has taken the initiative to become a GST facilitator. All CSCs across the country will serve as GST facilitators and help merchants file taxes under the new regime and also provide necessary training and support services to the people.

    Banking:

    In 2010, the Reserve Bank of India (RBI) issued guidelines to banks for delivery of financial services through CSCs to bring citizens to rural areas within the ambit of financial inclusion. The CSC SPV has since partnered with 42 public and private sector banks and regional rural banks to leverage their last mile network, particularly marginalized communities and women, under banking. Under this partnership, CSCs across the country can become Business Correspondent Agent / Customer Service Points to provide banking facilities to citizens, such as:
    • Account opening (manual) 
    • Account Opening (eKYC) 
    • Deposit money 
    • Withdrawal of money 
    • Balance inquiry 
    • Recurring / Fixed Deposit
    During 2016-17, banking services of 36 banks - 23 PSU banks and 13 rural banks have been provided through 11,940 BC points across the country. 382.71 lakh transactions during the financial year. 5,70,163.61 lakhs by these B.C.


    During 2016-17, 1,26,309 VLEs have registered under Digi Pay service. Around 28.351 lakh successful transactions have been done in CSC under Digi Pay to withdraw Rs. 17,901.89 Lakh.

    Insurance Services:

    CSC SPV obtained a license from the Insurance Regulatory and Development Authority (IRDA) in 2013 to act as an authorized intermediary for Rural Authorized Persons, ie Market Life and Non-Life Insurance Products through VLE. CSCs began offering health and life insurance policies to rural investors. So far, 36 insurance companies have come on board to offer various insurance policies through CSC. CSCs have also started offering motor third party insurance to their rural customers.


    Sale of new policies: During 2016-17, 40,016 RAP VLEs sold new insurance policies, both life and non-life, to 2,15,677 new customers and collected premiums. 2389.57 lakhs from those customers for Rs.


    Collection of renewal premium: CSCs across the country can also collect insurance premiums towards renewal of life insurance policies. During 2016-17, around 40,000 CSCs are engaged in renewal of life insurance policies of 18 insurance companies. During the year, these RAPs raised Rs. The renewal premium is collected. 31,026.36 lakhs from the current 8,31,710 life insurance policy holders.


    Public Safety Schemes: In 2015, the government introduced three special insurance and pension schemes for the citizens, especially for the unorganized sector and marginalized communities. VLEs acting as BCAs can offer three social security schemes - Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Atal Pension Yojana (APY) to citizens. Punjab National Bank has agreed to increase APY enrollment of its account holders through CSCs across the country.

    Pension Service:

    The National Pension System (NPS) is a voluntary, defined contribution retirement savings scheme, which enables customers to make optimal decisions about their future through systematic savings during their working lives. NPS wants to develop the habit of saving for retirement among citizens. It is an effort towards finding a sustainable solution to the problem of providing adequate retirement income to every citizen of India.


    The NPS is based on a unique Permanent Retirement Account Number (PRAN) that is allocated to each Subscriber upon joining the NPS. While he is working, the NPS subscriber accumulates savings in the PRA and receives a pension for the remainder of his life, using the accrual at retirement. NPS service has been launched through CSC from April 2017.

    Prime Minister Fasal Insurance Scheme (PMFBY):

    Pradhan Mantri Fasal Bima Yojana (PMFBY) is a comprehensive, yield-based crop insurance scheme of the government aimed at providing financial assistance to farmers suffering crop loss / damage arising out of unforeseen events. Crop loss due to this scheme is covered -
    • Prevented sowing / planting risk 
    • Non-preventable risks like drought, drought spells, floods, floods, pests and diseases, natural fires and lightning, hurricanes, cyclones, thunderstorms, hurricanes, tornadoes and tornadoes etc. 
    • Post harvest losses 
    • Due to local disasters - hailstorm, hailstorms, land slides and flood crop insurance have been introduced in 2017 for farmers through CSC SPV network in partnership with Bajaj Allianz General Insurance Company.

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