Rural Financial Inclusion scheme rolled out in Bihar

Microfinance Focus, Aug 28, 2010: Glodyne Technoserve, a technology services company in partnership with the Government of Bihar has rolled out rural Financial Inclusion services in the state providing banking facility to the 25 million ‘E-shakti’ MNREGS (National Rural Employment Guarantee Scheme) project. The scheme was rolled out by Chief Minister of Bihar, Mr. Nitish Kumar on Friday in Patna.

Smaarftech Technologies, a subsidiary of Glodyne Technoserve Limited which is implementing the ‘Eshakti’ project in the state has initially partnered with Central Bank of India. Under this scheme, “No Frills” Bank Account will be opened for every beneficiary as per KYC norms and payment of wages will be done through banking channel.

Glodyne, through its subsidiary Smaarftech Technologies has partnered with the Rural Development Department of the Government of Bihar for implementing and managing the National Rural Employment Guarantee Scheme (NREGS) project in Bihar, ‘E-shakti’. The project is running in the state since February 2009. ‘E-shakti’ is a 5 year BOOT project which is expected to generate more than Rs 284 crore in revenues for the Company and has the potential not only to generate more employment directly and indirectly, but also to transform rural economic and social relations at many levels.

Technology Services will be employed for implementing the scheme. Before processing payments, fingerprint and other KYC data will be verified for each beneficiary. Automation of the entire wage distribution under MNREGS through which payments will be delivered in a simple, transparent and quick manner will also be achieved under this scheme.

Speaking on the project Mr. Shri Nitish Kumar said “I would like to congratulate the rural development department, Smaarftech and to all the others associated in this project for making the dream of bringing transparency in MNREGS implementation become a reality. Financial Inclusion is one of the basic requirements for a progressive economy, and the Government of Bihar is dedicated to ensure the availability of banking facilities to the entire rural population of the State”.

Mr. Annand Sarnaaik, Chairman & Managing Director, Glodyne Technoserve Limited said, “We appreciate the vision of the Government of Bihar to become the first State in India to allow technology innovation in revolutionizing MNREGS in the entire State, bringing transparency in the wage disbursements and empowering the beneficiaries through financial inclusion. We are pleased to partner with Central Bank of India, one of the largest and respected banks of the country to provide banking to the rural population”.