IDFC Bank Partners with Govt. of Andhra Pradesh Krishna District for Direct Benefit Transfer Through Aadhaar-Enabled Interoperable Micro ATMs


  • Interoperable AEPS (Aadhaar Enabled Payment System) Micro ATMs deployed in villages in Krishna to enhance last mile financial access using digitization
  • Direct Benefit Transfer initiated by AP government from May 1, starting with social security pension; to be extended to other government entitlements, finally to Public Distribution System (PDS), making PDS payments cashless, demonstrating implementation of JAM-based transfer of benefits
  • IDFC Bank’s Micro ATM functions like a ‘Bank-in-a-Box’, with capability of serving customers of close to 3000 banks; it is encouraging entrepreneurship in Krishna district with SHG groups adopting IDFC Bank’s Micro ATM model

IDFC Bank has partnered the government of Andhra Pradesh, Krishna District, to enable Direct Benefit Transfer through interoperable AEPS (Aadhaar Enabled Payment System) Micro ATMs that are within easy reach of citizens in every village.

The partnership is the first to demonstrate the implementation of JAM based transfers (technology-enabled transfer of benefits using the (Prime Minister Jan Dhan Yojana + Aadhaar + Mobile Number).

It also makes IDFC Bank the first to deliver Direct Benefit Transfer like social security pensions, and in coming days, others schemes like scholarships, LPG subsidies, MGNREGA benefits etc., through an interoperable AEPS Micro ATM model, at scale, in a district, in a concentrated manner. IDFC Bank will soon implement this model for the public distribution system (PDS) as well, making PDS payments cashless, thereby taking cashless digital banking in rural India to the next level.

The first interoperable social security pension was drawn through an IDFC Bank AEPS Micro ATM on May 1 at Ganapavaram, Mylavaram Mandal by Shri Samdipaamu Guravayya in Krishna district. Nearly 32,000 pensioners will be using the IDFC Bank Micro ATM infrastructure to access their benefits in coming days. Over time, the concentrated coverage of banking services at a village level offered by IDFC Bank is expected to touch the lives of 46 lakh citizens in Krishna district alone.

The bank’s Micro ATM is owned and operated by women members of the self help groups (SHGs) approved for financial support by the government of Andhra Pradesh. IDFC Bank along with the Krishna district administration, has identified, trained, assessed and certified SHG members as individual Banking Correspondents (BCs). For some members, a Micro ATM ownership is the start of a new livelihood micro enterprise, while for others – it means the addition of a new revenue stream. An IDFC Micro ATM agent will cater to customers at Panchayat offices (in the first few days of every month) and later from their respective residences/work areas. These Micro ATMs offer all basic banking services to customers of any bank including deposits, withdrawals and transfers.

Citizens of Krishna district can now draw their entitlements in their neighbourhood itself, by transacting on any of the 500 Micro ATMs deployed by IDFC Bank across villages.

Dr. Rajiv Lall, Founder MD & CEO of IDFC Bank, said, “The Krishna district initiative is a milestone in last mile financial access, made possible through the intervention of technology. It emphasizes the benefits of JAM in reducing leakages, efficient targeting of beneficiaries and delivery of state welfare schemes based on biometric authentication. The initiative is also expected to encourage women entrepreneurship in local communities. It underlines IDFC Bank’s objective of being a private bank with a public purpose.”

Speaking on the occasion, Shri Babu. A, District Collector of Krishna, said, “Krishna District has become the first district to initiate Direct Benefit Transfers, starting with pensions, through interoperable AEPS Micro ATMs at scale, run by SHG members in villages. We realized that citizens spend a lot of time and money on travelling to draw their benefits from bank branches and ATMs that are located at a distance from their residence.”

The government’s aim is to provide easy access to banking services, while also bringing in transparency and preventing leakages. We believe digital rural banking will address these concerns. IDFC Bank’s innovative and interoperable Micro ATM enables citizens to draw benefits in the vicinity of their homes at all times. It not only saves them time, money and effort; they can now stagger withdrawals, drawing smaller amounts, as the facility is close at hand. We are pleased that IDFC Bank shares our vision and has joined us in our journey to deepen financial access in the state like never before,” he added.

IDFC Bank’s interoperable Micro ATM functions like a ‘Bank-in-a-Box’, enabling digital transactions, withdrawals and DBT for customers of close to 3000 banks. It also provides instant account opening and activation, working on multiple identifiers including Aadhaar-based authentication, mobile numbers, debit cards and bank account numbers.

About IDFC Bank:

IDFC Bank (BSE: 539437, NSE: IDFCBANK) is a subsidiary of India’s leading integrated infrastructure finance company, IDFC Ltd (BSE: 532659, NSE: IDFC). Headquartered in Mumbai, IDFC Bank is a universal bank, offering financial solutions through its nationwide branches, internet and mobile. Envisioned as a new age bank, IDFC Bank seeks to set a new standard in customer experience, using technology and a service-oriented approach, to make banking simple and accessible, anytime and from anywhere. In keeping with IDFC’s legacy of building the nation, IDFC Bank will focus on serving the rural underserved communities and the self-employed, while continuing to support the country’s infrastructure sector. IDFC Bank provides customized financial solutions to corporates, individuals, small and micro-enterprises, entrepreneurs, financial institutions and the government. With best-in-class corporate governance, rigorous risk management, experienced management and a diversified team, IDFC Bank is uniquely positioned to meet the aspirations of its customers and stakeholders. or Twitter, Facebook and LinkedIn



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