Financial Inclusion-Opening of Aadhaar Enabled Bank Accounts (AEBA)

 RBI/2011-12/284

RPCD.CO.FID.BC.No.41 /12.01.011/2011-12

November 30, 2011

The Chairman/Managing Director/

Chief Executive Officer

All Scheduled Commercial Banks

(Excluding Regional Rural Banks)

Dear Sir,

Financial Inclusion-Opening of Aadhaar Enabled Bank Accounts (AEBA).

Please refer to our Circular  RPCD.CO.BC.FID No.16/12.01.019/2011-12 dated August 12, 2011 forwarding the Operational Guidelines on implementation of Electronic Benefit transfer (EBT) and its convergence with Financial Inclusion Plan (FIP).

2. In view of the timelines attached to the implementation of EBT for routing MGNREGA wages and social security benefits including proposed cash transfers in respect of subsidies on Kerosene, LPG and Fertilisers, you are requested to ensure opening of Aadhaar Enabled Bank Accounts (AEBA) of all the beneficiaries including those residing in villages with less than 2000 population.

3. Please acknowledge receipt.

Yours faithfully

(Dr. Deepali Pant Joshi)

Chief General Manager-in-Charge

__________________________

Note : Circular  RPCD.CO.BC.FID No.16/12.01.019/2011-12 dated August 12, 2011  is mentioned below

RBI/2011-12/153

RPCD.CO.BC.FID.No. 16/12.01.019/2011-12

August 12, 2011

The Chairman/CMD/CEO of all scheduled commercial banks

Dear Sir/Madam,

Operational Guidelines on implementation of Electronic Benefit Transfer (EBT) 

and its convergence with Financial Inclusion Plan (FIP)

As you are aware, Electronic Benefit Transfer (EBT) for servicing low value accounts and extending banking infrastructure to underserved low income areas has been implemented in the states of Andhra Pradesh, Haryana, Karnataka, Orissa, Chhattisgarh, Himachal Pradesh, Uttarakhand, Bihar, Punjab, etc. on pilot basis in select districts under the "One District – One Bank" Model. Difficulties have been expressed by stake holders in scaling the model.

2.        The experience gained so far suggests that the "One District – One Bank" Model has not been able to achieve the objective of financial inclusion. Allocation of villages amongst banks under the Financial Inclusion Plan (FIP), i.e. Roadmap for providing banking services to villages with population above 2000, has been generally on the basis of the Service Area Approach. This has led to a situation wherein the designated bank for EBT and FIP in the same village differed. This issue has been raised in various fora by the State Governments and banks. For clearer conceptual understanding and based on detailed consultative meetings and interface with stake holders, "Operational guidelines on implementation of Electronic Benefit Transfer and its convergence with Financial Inclusion Plan" has been formulated. These guidelines are expected to give a fillip to financial inclusion efforts and lead to a scalable and sustainable financial inclusion model.

3.       A copy of the operational guidelines is enclosed for necessary action.

Yours faithfully,

(Deepali Pant Joshi)

Chief General Manager-in-Charge