A recent research report has revealed that the remote rural areas of the country are underrepresented by public sector and private sector banks. The Reserve Bank of India taking cognizance of this anomaly has decided to set new guidelines that would drive penetration of the banking sector in the marginalized rural areas of the country. According to the new model the RBI would be using the business correspondent model to facilitate the spread of banking in the underrepresented areas.
Biometric Access controls incorporate logical access control and physical access control, helping governments and organizations secure data and location against unwarranted access. With each day newer applications of biometric technology are being found, helping make environments safer, productive and efficient.
Biometric attendance is one such application of biometric technology which has helped organizations increase productivity. The simplest application of the technology requires the employee to use his iris scan to let the employer’s system know when they enter or leave the office. This data can then be used to calculate the hours put in by the employer at work. More sophisticated versions of this technology use bio-markers to record what the employee was doing at a particular point of time.
The banking domain is characterized by a dynamic work environment with employees constantly on a move, increasing the vulnerability of data. Biometric security devices can be used to safeguard data and location in such circumstances.
Reserve Bank of India’s new guidelines
HR Khan, executive director RBI, said that they were thinking of implementing a new set of guidelines based on the Business Correspondent model. He also said that the current initiative was required as the older initiative had failed to make a difference in the rural sector. HR Khan was speaking at a function in Ranikhera village, a rural area near New Delhi, organized to commence banking activities in such underrepresented areas.
The new initiative, involving Punjab National Bank and RBI, will provide banking facilities to the poor and the marginalized with the help of biometric ATM’s. The biometric ATM’s running on fingerprint access control, will service four villages and 300,000 villagers.
Nagdesh Pydah, executive director, Punjab National Bank, said that the rural sector had tremendous potential as almost 64 percent of those living in villages did not have any banking account.