Ref. No. NB.HO.DFIBT/ 1907-2364/ DFIBT-23/ 2019-20 29 August 2019
Circular No. 260/ DFIBT- 06 /2019
The Chairman / Managing Director
Regional Rural Banks
State Cooperative Banks
District Central Cooperative Banks
Demonstration of Banking Technology through Mobile Van - Support under Financial Inclusion Fund (FIF)
Please refer to Circular No. 105/DFIBT-04/2019 dated 23 April 2019 regarding differentiated strategy for FIF and the support provided for mobile demo vans. The provision of number of demo vans per district was reviewed in the recently held Advisory Board of FIF in the light of feedback from Banks and study findings etc. The mobile demo vans when used along with the financial literacy efforts of the banks has been very effective in promotion of digital literacy. The reason being imparting of financial literacy through use of ATM / micro ATMs in assisted mode. The Banks have reported increase in various outcome parameters like number of accounts opened, lending to SHGs, enrolment under social security schemes and usage of RKCC at ATMs etc.
In order to provide further thrust to effective digital financial literacy it has been decided to partially modify the captioned scheme as detailed below:
i. Support a maximum of five demo vans per district for financial literacy including the previous sanction/s based on the size of the district on a first come first serve basis.
ii. The vans may be deployed preferably in Special Focus Districts (SFDs) and selectively in other districts, on a case to case basis, based on remoteness and requirements of the district.
iii. The previously sanctioned vans, may be mapped by the concerned Banks to the districts in their area of operation in consultation with NABARD.
iv. The ceiling on number of vans to be sanctioned to a bank has been removed and requirement shall be assessed based on the performance of the bank in Financial Inclusion, available digital infrastructure and the efficacy in the use of earlier van/s sanctioned in creating financial literacy, outcome parameters and viability.
v. The Bank should have good functioning Financial Literacy Centre/s or actively involved in creating financial literacy awareness, especially in far flung areas.
The other terms and conditions of circular ibid remains same.
(D Nageswara Rao)