RBI to come out with Smart card system
Hyderabad, Sept 2: The Reserve Bank of India (RBI) along with the Institute for Development and Research in Banking Technology (IDRBT) is working on rural-oriented social security smart card system.
Informing this, RBI Governor Y V Reddy wanted banks to consider the feasibility of using smart cards for 'No Frills Accounts' to increase the coverage of banking services and facilitate the garnering in of much-needed low-cost deposits.
In South Africa, the card based MZASI account was used to provide limited service, affordable savings account integrated with merchant point-of-sale outlets, ATMS and even Post Office outlets, he said, adding that in Philippines, the card-based retail money movement system had won great acclaim.
Delivering the keynote address at the IDRBT before distributing Banking Technology Awards here today, he said the multi-application smart card system could operate as a bank account and also function as a store of electronic cash, as a data repository for essential information relating to the card holder and containing security features such as biometric identification.
The National Bank for Agriculture and Rural Development had launched a pilot project on Smart Cards along with the Sri Visakha Grammena Bank, a front-runner in financing Self-Help Groups(SHGs).
Referring to the Government sector, he noted that there was a large divergence in technology observation as states like Andhra Pradesh, Maharashtra and Karntaka were ahead of others in e-governance and this was just starting to happen in Madhya Pradesh, Uttar Pradesh, Bihar and the North East.
Enthused by sucess of Online Tax Accounting system for direct taxes, the Central Board of Excise and Customs in consultation with the RBI had introduced Electronic Accounting System in Excise and Service Tax(EASIEST), he said.
After computerising treasury operations by states, steps were being taken to establish electronic linkage amongst state treasuries numbering 3022 agency banks, finance departments of state governemnts, office of the Accountant General and the RBI, he informed.
He told the bankers that State Finance Secretaries were of the view that technologicial base and efficiency of services rendered by some of the banks handling government business needed to be improved significantly.