ICT: News Room

There's room for IT in government amid crisis

cabadmin cabadmin — Mon, 10 Aug 2009 23:13:03 GMT

Content:

There's room for IT in government amid crisis

Philstar.com: August 10, 2009

Education, health, environment and infrastructure are areas where governments in the Asia-Pacific region would mostly focus their attention and budgets on as they cope with the present global economic storm. Somewhere in the projects that would come from these areas are IT-related ones that would be incorporated as an element of new vital government initiatives.

This, in a nutshell, is the prospect awaiting IT and CIOs in government that market researcher IDC deduced from its latest Government Insights study, Economic Stimulus and Expansionary Budgets: Tabulating the Government’s Response to the Economic Downturn in Asia-Pacific.

IDC said there are $767 billion worth of initiatives that have been unveiled by governments in the Asia-Pacific (excluding Japan) or APEJ between August 2008 and April 2009.

The initiatives range from economic stimulus packages and expansionary budgets to the advancement of planned spending and projects.

Gerald Wang, market analyst for IDC Government Insights Asia-Pacific, said, “Most new government budgets do not single out IT spending but incorporates it as an element of a new and urgent government initiative. Despite this, it is still welcoming news for both government technology officers and information technology vendors.”

Based on the initiatives announced by governments across the APEJ region, IDC Government Insights analysts have identified the following key areas of investments, the implications of these priorities on ICT spending, as well as potential opportunities for businesses. These investments will begin in late 2009 and continue through 2014.

Infrastructure projects

Infrastructure projects not only help immediately create jobs but also boost citizen services, as they provide an opportunity for government agencies to address aging issues and problems with congested transportation systems, or upgrade healthcare and educational facilities for the benefit of their citizens.

The spike in infrastructure projects would likely boost ICT investments in areas such as remote monitoring for building maintenance, automated adherence to stricter safety standards and environmental compliance such as monitoring technologies for industry emissions.

Future schools

Future schools, which leverage on innovative technologies and business models to reach their target groups, will emerge as a key investment for governments. Among others, future schools address the objective of governments to create jobs through upgrades in educational infrastructure.

An example of public sector ICT spending that will likely arise from the emergence of future schools is the upgrade of existing ICT infrastructure in educational institutions across all levels.

Healthcare reforms

Healthcare is a key investment area for governments as it is related to job creation, skills development, citizen-services enhancement, and digital inclusion.

Healthcare investments provide a clear boost to public sector ICT investments. For example, to accelerate the move toward patients’ digital information, investments will have to be made in the existing ICT infrastructure of hospitals.

Green technologies

The current financial crisis provides a window of opportunity to restart the economic engine with a focus on long-term solutions that are economically, socially and ecologically sustainable.

In this context, national stimulus packages, to varying degrees, are seeking to not only revive but also green their national economies.

Furthermore, green technologies also help government agencies meet cost-cutting and budget optimization goals through a focus on energy efficiency.

Investments to strengthen green infrastructure across the APEJ have clear implications for technology spending in areas such as intelligent grid technologies, energy efficiency technologies, environmentally sound technologies (ESTs) that generate low or zero waste, etc.

The IDC Government Insights study features a specific country-by-country analysis of the budget stimulus initiatives across 13 APEJ economies. It serves as a guide to public sector CIOs seeking to optimize technology selection and implementation strategies.

In addition, it also provides guidance to IT vendors on how to best engage the public sector and plan the best business strategies to pursue new revenues from the opportunities generated by economic stimulus initiatives.

Title: There's room for IT in government amid crisis

Attachments: http://www.cab.org.in/ICTPortal/Lists/News Room/Attachments/39/ITinGovt.pdf

SBI’s financial inclusion initiative

cabadmin cabadmin — Mon, 10 Aug 2009 23:43:36 GMT

Content:

SBI’s financial inclusion initiative

Business Line: July 27, 2009

State Bank of India has joined hands at the national level with Kalanjiam Development Financial Services (KDFS) promoted by DHAN Foundation, a non-governmental organisation, 3i Infotec Foundation and India Post, to carry banking facilities to rural population in a big way.

Speaking to Business Line on the initiatives, Mr G. Ramanujam, Regional Manager, SBI, said in the Madurai region, the arrangement with KDFS would make the Federations of Kalanjiams, Vayalagams, Internet-based Village Information Centres, promoted by DHAN Foundation, become ‘customer service points’ of the bank. They will handle kiosk banking and biometric smart cards in the villages.

Operations have initially been started in 10 centres in Madurai district.

The 3i Infotech Foundation would soon start operations through kiosk technology.

The business facilitators/operative staff of these organisations, having required training, have opened more no-frill accounts and soliciting business for the bank. Currently, personnel of India Post is undergoing training.

Title: SBI’s financial inclusion initiative

Attachments: http://www.cab.org.in/ICTPortal/Lists/News Room/Attachments/43/SBI.pdf

Mobile Payments Driving Financial Inclusion in India

cabadmin cabadmin — Mon, 10 Aug 2009 23:40:57 GMT

Content:

Mobile Payments Driving Financial Inclusion In India

Biztech2.com: August 06, 2009

In a one-on-one with Biztech2.com, Dewang Neralla, director, atom technologies, discusses the relationship between mobile payments and financial inclusion.

Financial inclusion has been talked about for some time now, what is its current situation?

There are around 25 million people, who have to be brought into the banking channel and then the concept of delivery has to be thought about. The RBI has assigned business correspondents, who go to the villages, act as agents and help people open accounts. The entire concept is based on cash deposits and not banking-at-branches per se, as that is an expensive proposition. There is also an element of trust that has to be built so that people are not apprehensive to make transactions. The government is taking the required steps, but education related to the benefits of banking still needs to be imparted.

We at atom technologies feel that pervasive technology is the need of the hour to reach out to the unbanked and under-banked. There are multiple types of technology that can be used such as smartcards and other devices used by business correspondents for banking purposes. As an initiative to provide the unbanked with banking services, atom technologies has developed a technology facilitating banking through mobile payments. This technology is linked to biometric and printing terminals and more applications such as insurance, loans and the like can be added as and when required.

The next level of mobile banking, I believe would be accessing bank accounts on the phone in tandem with the agent/ associate facility.

How can mobile payments and similar technologies help bring more people into the financial system?

There are multiple areas where mobile payments are useful. One big advantage is bringing those who are unbanked into the fold as well. Mobile banking can be used for all remittance and the like, but all this has to start from the agent. Once the stage of mobile payments is passed, mobile banking will move on to the next level.

What are the obstacles faced by banks and micro-finance companies in bringing the rural populace under the aegis of banking?

One of the biggest challenges is the opening of bank accounts and convincing the rural people to conduct transactions. There is also the problem of reaching out and bringing everyone in, in addition to choosing the right technology and managing cash flows.

Micro-finance companies have very specific needs. Such companies need to be on a one-on-one basis with the customers and require technology that can track the flow of the transaction from scratch as well as follow the cycle of repayments.

Title: Mobile Payments Driving Financial Inclusion in India

Attachments: http://www.cab.org.in/ICTPortal/Lists/News Room/Attachments/42/Mobile Payments Driving Financial Inclusion In India.pdf

Nilekani takes over as head of India’s Unique Identification Authority

cabadmin cabadmin — Mon, 10 Aug 2009 23:34:58 GMT

Content:

Nilekani takes over as head of India’s Unique Identification Authority

Global News Centre for Microfinance: July 23, 2009

Infosys co-founder Nandan Nilekani took over as head of the Unique Identification Authority of India (UIAI) on Thursday with a mandate to create a national database of identity details of citizens.

The task ahead of Nilekani is to provide a unique indentification card to every citizen of India. This card will contain all details like the name, sex, address, marital status, photo, identification mark and finger biometrics by 2011. It can be used as a voter I-card or as a proof for opening a bank account and to get benefits under numerous welfare schemes like NREGS, Sarva Shiksha Abhiyaan, Food Security Act or get access to bank loans or microfinance, especially for the rural and urban poor. Nilekani also said Ram Sevak Sharma, a 1978 batch Jharkhand cadre IAS officer, will take over as Secretary and CEO of the organisation and the first set of database will be ready in 12 to 18 months time as announced by Finance Minister Pranab Mukherjee in his budget speech.

Nilekani was appointed as head of UIAI on July 13 and is expected to take few more weeks to get a team together to carry out the task.

Title: Nilekani takes over as head of India’s Unique Identification Authority

Attachments: http://www.cab.org.in/ICTPortal/Lists/News Room/Attachments/41/Nilekani takes over as head of India.pdf

SBI selects HCL to expand ATM Network

cabadmin cabadmin — Mon, 10 Aug 2009 23:31:24 GMT

Content:

SBI banks upon HCL to expand ATM network

Rupee Times: Auguest 06, 2009

IT major HCL Infosystems on Wednesday announced that the company has bagged an order worth of over Rs 40 crore from the country largest lender, State Bank of India and its associate banks for deploying, maintaining and servicing the advanced HCL-Hyosung Automated Teller Machines of the bank.

The IT collaborator has extensive experience in the domain and product know-how in ATMs and related applications.

Under the agreed terms, the technology partner will deploy over 1,000 ATMs and cash dispensers for SBI and its associate banks, with enhanced support features such as Braille and multi-lingual content, HCL Infosystems said in a statement.

Commenting on the move, J V Ramamurthy, Chief Operating Officer, HCL Infosystems, said, "We have been focusing on providing innovative banking and finance solutions for the Indian market...Given the potential of this sector, we are sure that with our ATM solutions we will be able to raise the bar for the banking and financial solutions in India."

The company also plans to introduce rural ATMs to help the banks in increased financial inclusion initiatives.

The estimated number of ATM installations in the country is just over 40,000. The number of ATMs per million people is as low as 33 units. It is expected that the demand for ATMs in India is expected to grow at 18% by 2013.

HCL Infosystems Ltd, offer a wide range of information and communication technology (ICT) products and solutions. Its desktops are the largest selling brand in the enterprise space. The company has expertise across various verticals like telecom, BFSI, e-Governance & power. It offers several product in association with leading global brands like Apple, Ericsson, Kingston, Kodak, Microsoft, Nokia, Toshiba, to name a few. HCL has lied up with Korean major Nautilus Hyosung to provide ATM solutions to banks in India.

Title: SBI selects HCL to expand ATM Network

Attachments: http://www.cab.org.in/ICTPortal/Lists/News Room/Attachments/40/SBI-HCL-ATM.pdf

A National Identity System

cabadmin cabadmin — Wed, 11 Mar 2009 18:09:54 GMT

Content:

A National Identity System

Business Standard, December 20, 2008

A universal national identity system for India will deliver end user benefits in four major areas: (1) welfare delivery and tax collections, (2) financial inclusion, (3) voter registration, and (4) national security. In addition to these important benefits, the manner in which such a system is implemented can also generate substantial benefits. An innovation ecosystem implementation approach would generate jobs, create several new companies, and potentially launch entirely new industries. It would harness the power of India’s world-leading telecom and IT/BPO industries and establish India as a global leader in payments processing, affordable financial services and mass e-governance.

A universal national identity system for India must include a national identification number, absolute biometric proof of identity and the ability to serve as a platform for multiple applications. Analyzing national identity systems and other national data infrastructure projects across the world suggests three distinct implementation models: (1) the centralized national authority model; (2) the decentralized model; and (3) the innovation ecosystem model.

The national authority model has been followed in Germany, France, Spain, Italy and many other European countries. China, Pakistan and Sri Lanka have implemented a similar approach. For instance, the Spanish identity card is issued by the national government, which manages the entire system. Each individual gets this card, with a unique national identification number, when they turn 14. The card is a machine-readable plastic photo card with signature, birth date and birth location. The national identification number is used for tax collection and welfare delivery. Banks use it to build credit histories and the election system uses it for voter identification. Spain (and most other European countries) is in the process of upgrading its identity cards by using smart card technology.

Brazil and the US use a decentralized model to run their national identity systems. In Brazil, a central authority sets standards on unique identification numbers, data capture, and enrollment procedures. However, the actual card is issued by different provincial authorities. This is a pragmatic solution given Brazil’s large and widely dispersed population. Cards are issued when an individual turns 18. The Brazilian identity card is a plastic card with photo, birth date, parents’ names, fingerprint and signature. The card is used for getting a driver’s licence, opening a bank account, completing all civil transactions and for gaining access to welfare programs. Each Brazilian gets either a CFP number, a unique identifier issued by the federal tax authorities, and/or an RG number issued by a province.

Several national data infrastructure projects, such as Germany’s highway toll collection system, use an innovation ecosystem approach. The German toll collection system was launched in 2001 to ensure that every truck using German roads paid tolls and congestion charges. All trucks have embedded GPS-based devices that communicate through the mobile data network. The German government played an important role in designing the system and collects $4 billion annually in revenues from the toll collection system. A consortium of companies including DaimlerChrysler, Deutsche Telekom and the French motorway operator Cofiroute operate the system through an independent, for-profit company called Toll Collect. The company issues the vehicle tracking numbers, collects the tolls from drivers and then disburses it to various recipients using agreed-upon allocation formulas. This approach has led to several technology breakthroughs and positioned Germany as the world leader in advanced vehicle tracking systems.

India could follow a similar approach. A National Mission must be set up to implement the system within four-five years. The Mission would define key standards, including card specifications, data structures, centralized data sharing and numbering protocols. It would then discuss and release the reference design to an innovation ecosystem that would consist of enrollment agencies, payment processors, software vendors, equipment manufacturers and various state authorities. If the Mission is based outside Delhi (say in Bangalore or Hyderabad or in an even smaller city) and requires consortium members to co-locate, an innovation cluster will likely develop.

A well-coordinated ecosystem is required to securely enroll India’s vast population in just four-five years. Here is how. Once the key standards are established (say, within six months or so), the Mission would ask IT/BPO companies to bid for various implementation regions. Five or six different companies could be selected to run the enrollment process in different regions of the country. Another IT company could be picked to run the centralized database that would be linked into the regional databases and to other databases such as the voter registration system. These contracts would be renewed every few years depending on company performance against key success metrics.

In parallel, the Mission would bid out for three-four universal payments platforms that could be operated by payment processors such as Visa and MasterCard. Payment platforms would utilize India’s outstanding mobile data networks. Payment processors would ensure that: (1) terminals were freely available to merchants; (2) identity cards could be used as credit/debit cards; and, (3) each individual would get a bank account. At enrollment, each citizen would choose a banking services provider who would then establish an account for that individual. This account would then be permanently linked to the individual’s identification number. All government welfare schemes would then use this bank account to make welfare payments. Naturally, the citizen could switch this account from one bank to another, say once a year.

With this universal data infrastructure in place, many other applications could also be delivered. For instance, each eligible student could get an education voucher to attend accredited schools or colleges. The government would deliver the voucher payment directly into the student’s account. The educational institution could then directly debit approved charges from the student’s bank account. Similarly, financial institutions could build a credit history for the individual. Land authorities could assign title to farmers, and so on.

Such a national identity system would spawn many new industries in India and position India as the global leader for affordable identity management, payment systems and e-governance. Entirely new payment terminals would have to be designed and mass-produced. Massive databases would have to be maintained to track citizens and to link various applications. Huge new software programs would be required to process payments. Financial transactions and bank accounts would have to be operated at the lowest possible cost. State governments could also bid out many of their functions, such as drivers’ licence issuance. Many new companies will spring up and India will be able to export its expertise around the world. A national identity system implemented through an innovation ecosystem thus generates huge end user benefits as well as dramatic industrial development benefits.

By Jayant Sinha, MD, Courage Capital Management, a global investment firm

Title: A National Identity System

Kerala pilot project on rural IT parks

cabadmin cabadmin — Wed, 11 Mar 2009 18:07:05 GMT

Content:

Business Line, February 27, 2009

Kerala pilot project on rural IT parks

The Kerala Information Technology Mission is running a pilot project to set up ITeS and BPO units in rural areas of the State.Dubbed the ‘Techno Lodge Scheme’, the initiative is currently being tested at two centres in Kollam district, said Mr Siddhartha Bhattacharya, CEO, Technopark, Thiruvananthapuram, at a press conference in the city on Thursday.

The scheme is intended to take the IT industry and its benefits to more parts of the State, while enabling IT businesses to control costs.

Under the scheme, ITeS units with 20-40 employees will operate out of buildings owned by the local panchayat or other government bodies, Mr Bhattacharya explained. Based on the response to the pilot project and the learning from it, the scheme will be extended to other parts of the State, he added.

CeBIT participation

As part of its efforts to attract more IT investments from abroad, especially from Europe, Kerala will participate in the CeBIT exhibition that is beginning in Hannover, Germany next week, Mr Bhattacharya said.

At CeBIT, arguably the world’s largest IT and telecom exhibition, the delegation from the IT Mission will attempt to identify possible partners for IT infrastructure projects in Kerala such as the plan to set up several new IT parks.

Despite the troubled economic environment, there are opportunities for Indian IT companies, including those in Kerala, Mr Bhattacharya said.

Title: Kerala pilot project on rural IT parks

‘Tech-driven approach will help achieve financial inclusion’

cabadmin cabadmin — Wed, 11 Mar 2009 17:56:21 GMT

Content:

‘Tech-driven approach will help achieve financial inclusion’

Business Line, February 16, 2009

The Institute of Development and Research in Banking Technology (IDRBT) is planning to develop common standards for banks in achieving financial inclusion.

An important objective of the institute, set up by the Reserve Bank of India, was to leverage technology for speedy achievement of financial inclusion, Mr B. Sambamurthy, Director, IDRBT, told Business Line.

“One of the primary challenges in financial inclusion is to reach over 6 lakh villages in India. Setting up a branch in each of these villages would be impossible due to operational costs. A technology-driven approach will help solve the problem,” Mr Sambamurthy said.

Though almost all public sector banks are engaged in financial inclusion initiatives, most of the projects are pilots which need to be replicated on large scale. Technology is the best option.

“You just take a smart card, for instance. Unlike the plastic cards we are using now, a range of transactions can be done with a single smart card. As the end-customers could also be illiterates, biometric applications are required,” he said.

RE-INVENTING

The focus of IDRBT, started over a decade ago, has always been enhancing the customer comfort. “We have no difference between the public, private and foreign banks. A customer of any of these banks is important to us,” he said.

The institute, which is an apex banking technology centre in the country and only one of its kind in Asia, is working on “re-inventing” itself to the fast-changing technology needs of the banking industry.

“We are working on many things. As a research center, we always think ahead and be ahead of banks on the technology front,” Mr Sambamurthy, who took over as head of IDRBT a couple of months ago, said.

MINDSET

The ‘Indian mindset’ is, in a way, both receptive and resistant to technology change in banks. “In rural areas, we are finding a lot of interest, especially from women using smart cards. It is amazing to see how women carry it by tying it to their sarees,” he said.

However, there is also some slow-acceptance to switching over to electronic transactions in a broader context which is reflected in relatively lower participation of public sector banks in facilities such as National Electronic Fund Transfer (NEFT).

“At present, approximately 65 per cent of transactions are based on NEFT. This is because of customer preference. Because it is the customer who has to take a decision of using a technology platform,” he added.

Title: ‘Tech-driven approach will help achieve financial inclusion’

PNB's financial inclusion project in Orissa

cabadmin cabadmin — Wed, 11 Mar 2009 17:54:17 GMT

Content:

PNB's financial inclusion project in Orissa

Punjab Newsline Network, November 18 2008

Punjab National Bank (PNB) has launched its first mobile banking service in Orissa as a pilot project at Daringibadi in tribal-dominated Kandhamal district.
The project aims to achieve financial inclusion in the district with its no-frills account.
The Chairman-cum-Managing Director of the bank, K.C. Chakrabarty, said at Gopalpur, about 10 km from here: “It is a technology-based financial inclusion project and aims to cover vast unbanked rural people.”
“Initially, the project will cover Daringibadi, biggest block of the State and then gradually be extended to other parts of the district,” Mr B.P. Sharma, head of the Orissa circle, said.
The Orissa project was the eleventh such facility of the bank that aimed at covering 30,000 villages having 15 million households by 2010 AD under the rural financial inclusion pogramme.
The bank had already reached 10,886 villages and opened 5.32 lakh no frill accounts.

Title: PNB's financial inclusion project in Orissa

ICICI Lombard ties up with 3i Infotech for financial inclusion

cabadmin cabadmin — Wed, 11 Mar 2009 17:52:09 GMT

Content:

ICICI Lombard ties up with 3i Infotech for financial inclusion

Press Release by ICICI Lombard General Insurance on Jan 27, 2009

1. Offers motor, health and weather insurance services through retail stores to rural customers with instant policy issuance through www.icicilombard.com
2. 300 retail stores operational in Haryana. The next phase of implementation will be in Goa and Gujarat
3. Plans to set up 12500 kiosks across the country
ICICI Lombard General Insurance, one of the leading private sector general insurance companies of India has entered into a partnership with 3i Infotech, a global information technology company to offer a comprehensive range of insurance services to rural customers.

Through the 3i Infotech’s I-SERV initiative retail stores have been set up to offer one stop service to rural customers for its business to customer transactions. The partnership with ICICI Lombard leverages this infrastructural investment in setting up rural e-kiosks to bring insurance closer to rural customers.

Pranav Prashad, Head, Rural Insurance, ICICI Lombard General Insurance said, “We aim to touch 10 million lives across rural India through various health and rural insurance schemes as part of our financial inclusion initiative. Our alliance with 3i Infotech for its I-SERV initiative is part of our effort in expanding the general insurance footprint through business to customer partnerships, NGOs and MFIs.”

ICICI Lombard has started operations with 300 kiosks functional in Haryana. The next leg will be in Goa and Gujarat. 3i Infotech is setting up 12,500 I-SERV retail stores across nine Indian states including Uttar Pradesh, Madhya Pradesh, Gujarat, Maharashtra, Goa, Andhra Pradesh, Tamil Nadu and Delhi. These stores will deliver services related to banking, insurance, mobile, education, ticketing, and utilities to begin with.

Prashad explained, “In a typical rural Indian family the financial dependence on the income of a single family member could be high. There is a risk of loss of income due to natural calamities, illness of the family member or illness of cattle. In rural areas consumers face difficulties in accessing quality and reliable insurance services that would help them mitigate these risks. With the ICICI Lombard and 3i Infotech partnership, a rural consumer can walk into the nearest e-kiosk to purchase appropriate and adequate insurance covers. Policies are issued instantly through our website www.icicilombard.com. He can also visit the same outlet for claiming insurance as well thus making a range of insurance services available and accessible for rural customers.”

Through these kiosks ICICI Lombard will provide its entire suite of general insurance products like motor, home, travel and health to rural consumers. Additionally, the company would also make available specific rural insurance products like cattle, tractor and weather insurance through these I-SERV retail stores. It will lead to instant issuance, renewals and tracking of policy 24/7 online.

Title: ICICI Lombard ties up with 3i Infotech for financial inclusion