Promoting Financial Inclusion - United Nations Development ...

top-up premiums, with the sum assured at
death 5 times the account balance.
Future plans
EKO-SBI accounts are technologically
integrated, with the core banking systems
operating for ‘no frills accounts’. However,
while ‘no frills accounts’ offer customers
an overdraft facility (4 times the minimum
balance successfully maintained over several
months), these are not yet available through
the BC but will be shortly. Eko is also in
discussions with SBI to allow customers to
deposit cheques into their accounts.
EKO will explore opportunities to
engage with employers to access payroll
salaries directly in to accounts, thereby
offering a reduction in paperwork and
supervision during payment process and
fuelling improved access to banking by the
waged poor. The only experience with this
so far is a temporary desk which EKO sets
up in the ESIC office (East Delhi) to open
accounts for recipients of disability pension
(previously these individuals were not able
to receive the money since they had no
bank account).
In the next one year, EKO aims to
engage around 8,000 CSPs in Delhi and
Bihar in order to provide convenient access
to the unbanked population.
C.2 IIBF—CAPACITY BUILDING OF
BCs FOR EFFECTIVE SERVICES
Reserve Bank of India permitted banks to
use the services of intermediaries in the
form of business correspondents (BCs)
and business facilitators (BFs) to increase
their outreach in the country. Banks can
thus engage in having more manpower
but without investing in brick and mortar
infrastructure. For this to happen in large
numbers, banks have to outsource services
through BC/BF across the country who
are not employees of the bank but act as
their agent. Banks are required to conduct
due diligence of the entities providing the
services of BC/BF.
One of the challenges faced by the
individuals employed as BC/BF is the
lack of training. They lack professionalism
and guidance. A large number of people
outsourced as BC/BF agents need
professional training and technical
knowledge of banking services. To cater to
this demand (though somewhat latent) of
both banks as well as BC/BF agents Indian
Institute of Banking and Finance (IIBF)
offers certificates course for BC/BFs.
About IIBF
Established in 1928 as a Company, IIBF,
formerly known as The Indian Institute
of Bankers (IIB), is a professional body
of banks, financial institutions and their
employees in India. During its 80 years of
existence, IIBF has emerged as a premier
institute in banking and finance education
for those employed in the sector, aiming
for professional excellence. Since
inception, the institute has serviced over
8 lakh members and awarded over 5 lakh
banking and finance qualifications, viz.,
JAIIB, CAIIB, Diploma and certificates in
specialized areas.
With its membership of over 662
institutional members and over 3.45 lakh
individual members, IIBF is the largest
Institute of its kind in the world and
is working with a mission ‘to develop
professionally qualified and competent
bankers and finance professionals primarily
through a process of education, training,
examination consultancy/counselling
and continuing professional development
programs.’
The Institute is managed by a
Governing Council comprising eminent
persons from the banking and finance
sector, academics and professionals. The
day-to-day management of the institute is
the responsibility of the Chief Executive
48 PROMOTING FINANCIAL INCLUSION