Financial Inclusion in Action

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Aadhaar verdict – SC strikes the right balance between delivery of benefits and privacy

The long debate on the constitutionality and purpose of Aadhaar may not end with the judgement of the Supreme Court but it will certainly become more specific and narrower. In a landmark judgment, the five-judge Supreme Court bench opined with a 4:1 majority that Aadhaar is legitimate and proportional. The judges observed that although Aadhaar… Continue reading

RuPay cards – A long road ahead

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On 26th March 2012, National Payment Corporation of India (NPCI) launched Rupay – India’s own payment gateway network. ‘RuPay’ is a low-cost alternative to other payment gateways, such as MasterCard and VISA. Banks pay lower transaction processing fees as transactions are performed on the domestic payment network. This makes RuPay a viable digital payment solution… Continue reading

India’s enabling triangle for financial inclusion

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In our earlier blogs, we expressed our concerns around the growth of the digital divide, as the focus for financial inclusion shifts to FinTech and superplatforms as “the definitive solutions”. While these solutions typically require smartphones, many of the poorer households in Asia and Africa simply do not have access to the devices. Neither do… Continue reading

The Agent Profitability Conundrum in India – Time for Differentiated Agents?

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  Recent research from MicroSave suggests that although agents report their dissatisfaction as high, dormancy or dropouts are still relatively low at 20%. The low dormancy or dropouts are potentially due to the following factors:    1. Hope – agents believe that the national financial inclusion drive (PMJDY) will increase the volume of business;  2.… Continue reading

Indian DFS landscape is changing: Insights from State of the Agent Network India, 2017 (ANA) Wave II Research

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MicroSave recently published its ‘State of the Agent Network, India 2017’ report based on our Agent Network Accelerator (ANA) Wave II research. We conducted the research in 2017, based on a nationally representative sample of 3,048 business correspondent agents. The 2017 India report proposes a significant shift from Wave I in 2015.    The report… Continue reading

Interoperability – A Regulatory Perspective

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Basis great inputs and discussions from Amrik Heyer, FSD Kenya, Stephen Mwaura former Head of Payments, Central Bank of Kenya, Uma Shankar Paliwal, Former Executive Director, RBI, Dennis Njau, Head of Channels, Kenya Commercial Bank, Gang Chai, Payment Policy Manager, Central Bank of Nigeria and Johnah Nzioki from Eclectics. In a recent workshop organised by… Continue reading

Open Application Programming Interfaces (API): Purpose and Possibilities

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Application Programming Interface or API, a software programme, acts as a bridge between disparate applications. It performs the intended function when a set of instructions are provided through a user interface (UI). The front-end of UI is usually a website or mobile application. The following diagram illustrates the basic architecture of any API-based business model:… Continue reading

Offline Payment Acceptance: A Puzzle and an Opportunity

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As Indians, we love cash, which is fungible and provides instant gratification – allowing us to buy anything across the country. Cash speaks one language, does not discriminate, and provides a seamless experience!   RBI estimates that 96% of all the retail transactions in the country are conducted using cash, leaving only about 4% payments… Continue reading

JAM – Using (Jan Dhan) Bank Accounts, Aadhaar and Mobiles to create new products and services, and new ways of doing things

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Jan Dhan Yojana, Aadhaar and Mobile or ‘JAM’ are creating a buzz in financial inclusion space, not only in India but across the world. JAM has been jamming newsrooms and social media after being coined in the Economic Survey 2015 and the Union Budget 2015.    The JAM trinity is seen as an important tool… Continue reading

e-KYC and the India Stack – A Transformative Blueprint for Emerging Markets

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A student newly admitted at Kenyatta University, Nairobi, wants a new mobile SIM, so she can talk to her parents back home in Eldoret. Her national identity card is used to establish her identity. A 32-year-old widow of a landless labourer in Bihar walks up to a Bank Mitr agent to open an account, so… Continue reading