Diversification of Payment Systems and Financial Inclusion of all Households

Background

Aligning with the Prime Minister’s focus on digital payments and financial inclusion, the Bokaro District Administration developed a unique strategy that was implemented from the district level to individual households. This initiative has been brought into action to shift to cashless mode of payments and transactions.

Intervention

A one-day workshop was conducted for all district officials to understand the nature of digital payments, and to analyse the current status of the district with respect to smartphone coverage, penetration of bank branches and ATMs, extent of average digital literacy and digital payments. A roadmap and a plan of action were created with the objective of increasing digital literacy and digital payments. Weekly review meetings at the district and block levels were conducted to monitor progress, and identify and address the gaps in the implementation. People at the district and block levels were trained in digital transactions and mobile banking as Master Trainers. A 'BHIM Sena' was created with a group of volunteers who wanted to take this mission forward. They would train at least 5 people at their respective blocks every day who would continue the training chain until a substantial number of people were trained in digital transactions. One of the most successful experiments was the use of a novel technique to achieve the mandate assigned. Bokaro Administration conceptualised and implemented a Chai-Samosa training model based on the learning-by-doing principle. Each person in the training was encouraged to complete two cashless transactions of one rupee each, by swiping a card, using UIDAI-enabled Micro-ATMs or transacting through an e-Wallet. Many such public initiatives were taken up, in which the District Collector and senior officers also participated. The services sector has also actively participated in enabling digital payments in the GPs, with digital payments being utilised at private schools and hospitals; ambulances, autos, buses and taxis; Common Service Centres; PDS shops; petrol pumps etc.

Impact

All petrol pumps were digital payment-enabled by December 2016. By the end of July 2017, all government services in the district were being paid for through digital transactions. This resulted in a wide range of benefits, both to the citizens as well as the government. Common Service Centres or Pragya Kendras, which provide all public services, became a medium for citizens to experience the various benefits of digital transactions in real time. This has been borne out by the increase in the quantum of digital transactions from approximately 5.5 crores in August 2017 to over 6 crores in December 2017. This penetration at the village level is truly the greatest example of the success of the campaign by the district administration.

Source : Aspirational Districts for WEB