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K. Ram Kumar

Mumbai, Feb. 12 State Bank of India (SBI), India’s biggest bank, is seeking to leverage technology so that the underprivileged can remit funds to their near and dear ones in the remotest corners of the country via ‘smart card to smart card’ and ‘smart card to account’ funds transfer, through a handheld electronic device carried by designated business correspondents.

This remote remittance arrangement will save SBI’s needy customers, especially those migrating for employment from one place to the other, the bother of having to trudge up to the nearest branch to transfer funds. Funds transfer beyond branch banking is what the bank is keenly looking at in order to further the cause of financial inclusion.

According to the Reserve Bank of India, banks can appoint the non-government organisations/micro finance institutions set up under Societies/Trust Acts; societies registered under the Mutually Aided Cooperative Societies Act or the Cooperative Societies Act of States (Section 25) companies; registered NBFCs not accepting public deposits and post offices to act as their business correspondents.

The bank is also planning to offer smart card holders an overdraft (OD) facility for consumption purposes. Under this facility, all that a customer needs to do is visit the nearest SBI branch once to get the OD sanctioned. Subsequently, he can draw the loan according to his/her requirement and also pay instalments to the designated business correspondents in rural areas where there is no branch connectivity.

Chip-embedded smart cards will, among other things, enable customers to make cash deposits, withdrawals, transfer funds, make balance enquiry, and get a print out of the last five transactions.

Later this month, the bank is planning to launch ‘smart card to smart card’ funds transfer facility. This will be followed up by the launch of ‘smart card to account’ transfer facility next month.

More Stories on : Public Sector Banks | Rural Development | State Bank of India

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