The Hindu Business Line : New tools to promote rural banking

Coimbatore, Jan. 17 To facilitate banking convenience to the rural populace, FINO (Financial Information Network and Operations Ltd) has unveiled micro finance tools and products such as Loan Origination System (LOS) and Micro Deposit Machine (MDM).

While LOS is expected to help banks and financial institutions collate all loan-related information offline, the MDM, unlike an ATM, would not permit direct cash withdrawal but enable banks to automate cash deposits in the unbanked area.

Explaining the uniqueness of the two products, FINO sources told Business Line that a simple Internet connection (available even in small towns and villages) would be sufficient to operate the LOS.

“It integrates the basic branch operation, aids both the loan disbursement and collection process by providing entry by exception, supports all functions via a normal Internet connection as opposed to broadband and synchronization of data by easing upload and download functions helps relieve frontline staff of disgruntled work.”

MDM, on the other hand, is a portable machine. ‘While disallowing one from withdrawing cash directly from the machine, it would allow the customer to enter the amount to be withdrawn and collect the receipt, give it to the agent, who in turn provides the cash to the smart cardholder.

This tool would revolutionise the manner in which transactions are carried out. It would assist vendors in better cash management by providing him another revenue stream,” the source said.

Remittance product

FINO has also introduced a ‘Remittance’ product that is aimed at organising the remittances in the domestic market and changing the way money remittances happen in rural pockets.

The company has brought out a card-to-card fund transfer application that would ‘allow the customer transfer funds from his/her card to that of the beneficiary without going through the regular rigmarole of the post office or agent.’

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