Smart card and RBI – the new concept
With the passage of time Financial India is gradually emerging as one of the leading user of electronic cards and fund transfer systems. The geographical vastness of the country coupled with its ethnic diversities and immense commercial potential has promoted both the buyer and sellers to extend their periphery of activities.
Catering to such requirements of the consumers, the Reserve Bank of India has now come up with the introduction of smart card. The basic concept is that payments to beneficiaries would be convenient and easier with the card. The initial introduction would be to security pension and NREGS programs implemented in the Public Sector in India. The smart card and RBI options are to allow the beneficiaries to directly deposit their money with the banks.
For the first time the project were put to test in Bellary and Chitradurga districts in the State of Karnataka and achieved quite reasonable amount of success. The smart card was implemented by creation of a committee that had its first meeting in February, 2008. Eight leading companies entered the competition to bag the prestigious project.
Not forgetting the immense potential of the traditional credit cards in India, the banks and committees accepted 47,652 such card holders in the program. From the banks, 27 lakh no frills accounts were inducted to the program. Twenty three banks took part in the rural implementation of the program. The program aims at creating a link with over 50,000 credit card groups in the State and thereafter expands the program phase wise to other parts of the country.