Financial inclusion can be achieved only through digitisation, according to Mr B. Sambamurthy, Director, Institute for Development and Research in Banking Technology.

Speaking at a workshop on ‘Digitisation of Identity and the Financially Excluded’ here on Tuesday, he said only 40,000 habitats of 6.2 lakh villages were on the radar of financial inclusion.

The cost and operational feasibility of digitisation would make financial inclusion possible, he added.

There was a difference between business model and operating models in field, he said, adding: “How do we stitch an operational model for financial inclusion is important.’’

Key issues

The last-mile connectivity, security and co-creation of viable technologies and methods were important issues, the IDRBT director said.

Mr Reddy Subrahmanayam, Principal Secretary, Department of Rural Development, Government of Andhra Pradesh, said it was important to arrive at an optimum cost of maintaining financial services in the villages.

The digitisation of identity and financial inclusion might not always be the same and could have different implications based on the objectives.

Financial inclusion should be made more comprehensive with regard to services being offered, Mr Subrahmanyam said.

The apex cooperative credit society set by AP Government, Sthreendhi, was making use of technology for all-levels of loan disbursals, the official added.

The workshop was conducted by the Centre of Study of Culture and Society, Bangalore as part of a Ford Foundation-funded study on grassroot-level social impact of digitisation process of Aadhar project in seven states.

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