IDFC Bank has partnered the government of Andhra Pradesh, Krishna District, to enable Direct Benefit Transfer through interoperable AEPS (Aadhaar Enabled Payment System) Micro ATMs that are within easy reach of citizens in every village.
The partnership is the first to demonstrate the implementation of JAM based transfers (technology-enabled transfer of benefits using the Prime Minister Jan Dhan Yojana + Aadhaar + Mobile Number).
It also makes IDFC Bank the first to deliver Direct Benefit Transfer like social security pensions, and in coming days, others schemes like scholarships, LPG subsidies, MGNREGA benefits etc., through an interoperable AEPS Micro ATM model, at scale, in a district, in a concentrated manner. IDFC Bank will soon implement this model for the public distribution system (PDS) as well, making PDS payments cashless, thereby taking cashless digital banking in rural India to the next level.
The bank’s Micro ATM is owned and operated by women members of the self help groups (SHGs) approved for financial support by the government of Andhra Pradesh. IDFC Bank along with the Krishna district administration, has identified, trained, assessed and certified SHG members as individual Banking Correspondents (BCs). For some members, a Micro ATM ownership is the start of a new livelihood micro enterprise, while for others - it means the addition of a new revenue stream. An IDFC Micro ATM agent will cater to customers at Panchayat offices (in the first few days of every month) and later from their respective residences/work areas. These Micro ATMs offer all basic banking services to customers of any bank including deposits, withdrawals and transfers.
Citizens of Krishna district can now draw their entitlements in their neighbourhood itself, by transacting on any of the 500 Micro ATMs deployed by IDFC Bank across villages.
IDFC Bank’s interoperable Micro ATM functions like a ‘Bank-in-a-Box’, enabling digital transactions, withdrawals and DBT for customers of close to 3000 banks. It also provides instant account opening and activation, working on multiple identifiers including Aadhaar-based authentication, mobile numbers, debit cards and bank account numbers.