Through the business correspondent model, i25 RMCS offer solutions to improve the operational efficiency of social benefit schemes like MGNREGs, SSP,etc. The benefits are transferred through the Electronic Benefit Transfer (EBT) scheme which is part of financial inclusion where a bank account is required to provide whole range of permissible banking services. i25 RMCS also offer technology through business correspondent for enrollment of beneficiaries, issuance of biometric smart card to distribute wages.
- For each disbursement scheme, a document containing the names of recipients and the amount of money to be paid to each recipient is given to the field agents of various regions. This document is referred to as “Disbursement List”.
- The scenario of receiving the disbursement file could vary with the region, government or the entity authorizing the payment.
- The disbursement files are uploaded into the appropriate servers so that the lists of recipients are available to the field agents on the iMFAST terminals. A copy of the file is downloaded onto the terminal at the beginning of the disbursement cycle so that the payments can be made offline.
- The bank associated with the disbursement scheme deposits the amount to be disbursed into the bank account of i25 RMCS at each region.
- The field agents are informed of the payment schedules for each type of disbursement. Based on the schedules, before the beginning of each disbursement cycle, the field agents go to the corresponding branch of the bank and withdraw the necessary amount.
- The field supervisors ensure the credit into the i25 RMCS account and remind the field agents of the disbursement cycle.
- On the specified dates, the field agents start the disbursement cycle.
- The field agents are given a period of fixed number of days (say 3 days) to complete a disbursement cycle.
Every field agent has a running account with i25 RMCS. Money is deposited into individual field agent’s accounts. The field agent withdraws cash from this account and uses for cash transactions, disbursals and deposits the cash received from the account holders during terminal transactions. At regular and frequent intervals, the field agent’s settle the cash with an authorized person of the bank.
- The transaction terminal is issued to an authorized person of the branch. This person is referred to as Branch Business Correspondent (BBC). Each branch business correspondent is authorized to settle cash with a specified set of field agents.
- All the transactions are carried out in the online mode.
- The branch terminal is used for cash settlement. Cash is settled at the branch.
- In this scenario, for cash settlement transactions the branch business correspondent takes the role of a field agent. The field agent who carries out the transactions of the account holders in the village takes the role of a customer and is referred to as Field BC (FBC).
- The terminal issued to the branch business correspondent can also be used for transactions with account holders. The account holder is referred to as a Customer.
- The field agent is expected to complete the Day End operation on the field terminal before settling cash on the branch terminal. The field agent need not take the terminal to the branch.
- When the FBC gives cash to the branch, it is considered as a deposit and when the FBC takes money from the branch, it is considered as a withdrawal.
- An FBC should deposit the amount equal to the balance between the total amount of cash received from the customers and the total amount of cash paid to them