Commonwealth pre paid cards for unbanked population

CHENNAI: As part of financial inclusion mission, Commonwealth Micro Finance ( India), ( CMFIL), an associate of UK based commonwealth business council, has come out with pre paid debit cards with all security features for issuing to a large section of unbanked population in the country.

The multi-purpose biometric card and pin attached card has been designed like the mobile smart card and will be issued for a nominal charge to the common people not having any bank account based on their identity and address proof. It will help them to draw cash from ATMs, make purchases in kirana shops, buy bus tickets and avail of mobile banking and other services.

CMFIL has selected North Chennai for the pilot project and the cards will be launched in the city on Thursday by former President of India, Dr APJ Abdul Kalam. Initially, it has tied up with Repco bank for issuing the co-branded cards. Later, it will tie up with three banks.

CMFIL MD and CEO, Mahesh Ramachandran told media persons, north Chennai has over 5800 merchants and it is proposed to cover 10% of them. It plans to invest Rs 6.4 crore over four months for distributing POS, issuing cards and creating overheads. Cardholders would be get a minimum 10% discount on their purchases.

Stating the unbanked population is a staggering 60 crore, he said the company���s plan is to issue two crore cards and distribute three lakh POS by 2012. Now, the country has five lakh POS largely in urban centres and used by those having bank accounts.

By second half of 2010, it is proposed to cover the entire Tamil Nadu and Gujarat and all metros. It is also discussing with Karnataka Government. It is also proposed to issue the cards to construction workers for receiving their wages. It is also proposed to cover remittances from abroad.

A large number of business correspondents\agents and merchant establishments would be enrolled across in India to service the card holders. The company also intends to have tie up with 1.5 lakh post offices for early transfer of money at low cost.

Dr Mohan Kaul, director general and CEO, CBC) and CMFIL Chairman said Commonwealth���s vision is if the market economy has to succeed, people at the bottom of the pyramid in developing countries should be connected to the economy using ICT as a driver. Commonwealth cards are being launched as part of this large vision.