Once an individual receives an Aadhaar, they are automatically ready to be issued a Visa Instant Account – simplifying the KYC criteria. Prior to this, customers would have had to provide numerous documents to fulfill the banks’ KYC requirement. Once enrolled, the customer can then use Saral Money to make purchases, send money, or receive government disbursements at existing ATM, point of sale terminals, and the proposed micro ATMs.
Speaking on the launch Mr. Uttam Nayak, Group Country Manager - India and South Asia, Visa, said “This is a perfect example of how the public and private sector have come together to overcome the multifaceted challenges of Acquiring, Acceptance, Activation and Awareness and to develop India’s payment ecosystem. India is now well placed to lead the way with an affordable and scalable payments solution for all its citizens.”
It is also the first coordinated investment in developing a financial inclusion and e-payment ecosystem for India. The pioneering joint initiative is aimed at combining Visa’s advanced network technology, the government’s reach and the banks’ extensive facilities to drive the Indian Government’s vision of empowering millions of financially under-served Indians with a financial identity.
This unique payment solution specifically targets India’s financially excluded regions and will support cash transfers for subsidies, scholarships and other government disbursements. The benefits to the consumer come from the ability to receive payments direct to the Saral Money and use it to withdraw or remit those payments to family members; for the government, the system helps improve transparency and efficiency while driving the country’s electronic payment and financial inclusion agenda.
The joint effort of Visa and the leading Indian banks built on the UIDAI platform to combine a payment instrument with Aadhaar is aimed at establishing a next-generation service delivery and providing financial inclusion benefits throughout India. The key to the new solution is the Visa network, which integrates and links the different systems being operated by the banks with the government’s national identity database. This means Saral Money is not restricted to a specific bank or region and is the first truly scalable program for India. The service aims to target the 210 million Aadhaar holders currently enrolled and expand that to 600 million, the UIDAI’s target for 2015.
Visa is currently the only authorized international payment network for the initiative and the system was developed specifically for the UIDAI project. It is Visa’s first biometric authentication system and the payment company’s largest financial inclusion program to date. It is literally a bank account at one’s fingertip.
Phase 1 of the program will roll out in key parts of New Delhi and the National Capital Region with the rest of the country targeted by the end of next year. Aadhaar holders can register by producing their Aadhaar letter at any participating bank branch or BC outlet. Consumers can also use the service to pay at any merchant that accepts Visa cards and make bill payments, mobile recharge or book ticket online.
Access to formal financial services is essential for the economic progress of any nation. Visa has been working with banks and governments in over 200 territories to ensure more and more citizens benefit from the advantages of electronic payments and to build efficient and transparent systems. In India, Visa has worked with banks, partners and key stakeholders and has introduced state-of-the-art payments technology and continues to invest to build and sustain a secure payments ecosystem.
QUOTATIONS:
Speaking on the partnership, Ms. Shikha Sharma, Chief Executive & Managing Director, Axis Bank said, "Axis Bank is committed to furthering financial inclusion through adoption of technology and we are happy to partner UIDAI and the government in ensuring safe convenient and timely delivery of subsidies."
Speaking on the initiative, Mr. Rahul Bhagat, Country Head - Retail Liabilities, Marketing & Direct Banking Channels, HDFC Bank said, "By offering Prepaid Cards across the counter to any Aadhaar registered resident goes a long way in simplifying the manner by which the unbanked can be included in the banking system. HDFC Bank is delighted to partner UIDAI ,Visa and our business correspondent , ItzCash Cards, in this path breaking initiative to simplify the manner by which benefits from welfare schemes can reach the intended customer in a simple and effective manner."
Speaking on the partnership, Mr. Rajiv Sabharwal, Executive Director, ICICI Bank said, "We are very excited about the partnership with UIDAI and Visa, which will help ICICI Bank to offer financial services in the underbanked regions of India. This is in line with the Bank's commitment to drive inclusive growth and drive payments to the right person in an efficient and transparent manner. ICICI Bank has opened around 12 million financial inclusion no frill accounts by leveraging its strong network of over 2800 branches across 1200 towns in 13 states. This partnership will facilitate access to the financially excluded parts of the society and ensure that benefits from various welfare and growth programs of the government reach them along with other financial services and products."
Speaking on the partnership, Mr. M. Narendra, Chairman and Managing Director, Indian Overseas Bank, said, “We are proud to be a part of the team who have come together to launch Saral Money, India’s first financial inclusion solution that has seen leading banks and payments technology come together. I am confident that this pioneering joint initiative will enable millions of financially under-served Indians with a financial identity – Touching their Hearts and Spreading Smiles.”
Speaking on the partnership, Mr. R. Karthikeyan, Chief General Manager (Corporate Strategy & New Businesses Group), State Bank of India, said, “It has always been SBI’s focus to provide comprehensive financial services to the underprivileged in a cost effective manner, particularly in untapped / unbanked areas. This partnership further extends our vision of complete financial access to every citizen in India. We are thankful to all our partners in helping us to achieve this task and enabling us to realize our dream of a financially developed country.”
Speaking on the launch, Mr. Nandan Nilekani, Chairman, Unique Identification Authority of India said, “I am delighted to be at the launch of Saral Money and thank all the partners for their efforts in developing this innovative product. This initiative will not only help the financially underserved to access formal banking processes, but will also serve as a benchmark for many more initiatives in making India a self-sustainable developed economy.
About Visa
Visa is a global payments technology company that connects consumers, businesses, financial institutions and governments in more than 200 countries and territories to fast, secure and reliable digital currency. Underpinning digital currency is one of the world’s most advanced processing networks—VisaNet—that is capable of handling more than 20,000 transaction messages a second, with fraud protection for consumers and guaranteed payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa’s innovations, however, enable its financial institution customers to offer consumers more choices: pay now with debit, ahead of time with prepaid or later with credit products. For more information, visit www.corporate.visa.com
