Promoting Financial Inclusion - United Nations Development ...

on a single card. In the field, these cards
can interact with various offline and
online channel enablers like FINO’s
biometric enabled Point of Transaction
devices (POT), Mobile POS/PDAs,
etc., and existing mag-stripe based online
networks of ATMs, PCs, POS and
Kiosks. Captured end-consumer data is
periodically transferred to a centralized
location using connectivity options
like PSTN (GSM/CDMA options are
being planned). Authentic identification
and non-repudiation of transactions
is achieved through the biometric
fingerprint templates stored in the
card of the end user. The fingerprint
verification is done at the device level
where a live fingerprint of the end user
is captured and verified using against the
stored fingerprint template on the card.
The fingerprint technology ensures
that there will be no duplicate identity
created for the same customer.
iii. Credit Bureau/scoring component
(Sayana Ravi) which enables creation
of knowledge base and financial credit
worthiness, credit rating profile of the
end user.
Numbering Logic
BOX C.5: Technology Enablers
Customer
Business
Correspondent
Bank / MFI
Biometric Enabled multi
application smart card
Biometric Enabled handheld
device, i.e., Point of
transaction (POT) machine,
Mobile phone with camera,
PC, Menu based Application;
PSTN line, USB
Middleware, Core Banking
System
FINO system relies on multiple-number
logic. There are two types of numbering
logics that FINO system uses:
URN: Unique relationship number is a
banking pin based number that is unique to
a card chip (also called FINO chip number).
This number is used for transaction
identification over the FINO network.
FID: FINO ID number is a unique
geographical locater printed on the facia
of the card. This 17 digit number among
other data sources is based on census data
of India and is structured to capture details
like year of birth, gender, state and village
codes besides a serial number. Thus FID
uniquely identifies the individual belonging
to a village.
Besides the above internal numbering
logic, FINO systems have a provision of
mapping account ID belonging to backend
of a third party entity, like account ID
in core banking solutions of banks. Such
a provision ensures that there is a seamless
flow of information specific to a consumer
not only internal to FINO system but also
in third party back ends.
FINO Operations
FINO is working in 4 different spaces:
(i) Government to Person Payments
(G2P)/Electronic Benefits transfer
(EBT) in partnership with banks
(ii) With banks as TSP for banking services
and/or BC for banks for account
opening, person to person payments
(P2P) - Remittances
(iii) Insurance
(iv) Microfinance Institutions (MFI)
services as MIS and credit scoring
• Government Payments:
This foray into the Government sector is
most common through National Rural
Employment Guarantee Act (NREGA),
which involves convergence of the banking
segment with the government domain. The
disbursement of NREGA payments and
social security pensions to beneficiaries,
pension in remote locations is done through
the BCs.
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