Union Bank of India has launched doorstep banking operations in to the rural areas of Uttar Pradesh using biometric smart cards.
Embedded with electronic chips, the biometric smart cards will act as a customer identity using the fingerprint of the accountholder as a bio-password. The cards will also act as an e-passbook and would store data of all transactions.
The customer will have access to banking and other financial services and transactions since they will be enabled at any point by the Bank's business correspondent using a a hand held point of transaction machine.
This has been made possible because the Bank is joining hands with Financial Information Network and Operations Ltd. (FINO) and Cashpor Micro Credit. The Bank has launched a pilot project in Chahania Block in Chandauli district. FINO provides technical support, which enables the bank to leverage on technology to serve the customers.
Union Bank of India has financial stake in FINO and this pilot project has been launched in Chahania Block in Chandauli district of Uttar Pradesh. So far 1000 smart cards have been issued in four villages and the aim is to issue 5,000 such cards initially.
This is a first step toward extending such services to the population in all rural areas. This initiative will enable the Bank to take financial inclusion to the next level. Union Bank of India is a pioneer in the introduction of innovative measures to reach out to the rural population. The Bank believes that the financial needs of the family as a whole need to be addressed.
The Bank has used technology to establish Village Knowledge Centres, which have proved to be a success in the 198 centres, where they have been set up. VKCs empower the local rural population by giving them information on various vital inputs such as weather, fertilizers, prices of crops, etc. The bank is also operating financial education centres offering counseling at 51 of these VKCs. The Bank has already set up its first bio metric ATM at Sivaganga in Tamil Nadu.