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Date : Apr 24, 2008
RBI places on its site Report on Suggesting a Framework for Electronic Benefit Transfer for Public Comments

The Reserve Bank of India has today placed on its website the report of the Committee for suggesting a framework for Electronic Benefit Transfer (EBT) for public comments. Comments may be sent either by post to the Chief General Manager, Reserve Bank of India, Department of Payment and Settlement Systems, Central Office, Fort, Mumbai - 400 001 or sent by Fax at no. 022- 22659566 or may be emailed on or before May 16, 2008.

The Committee has, in its report, made recommendations on the implementation possibilities of EBT. The underlying theme of the recommendation is to have a broader methodology to ensure that Government payments reach the ultimate beneficiaries using the banking channels, adopting the plan of financial inclusion using BCs and biometric based smart-card technology. The Committee has also suggested a framework for monitoring the progress in implementation.

Of late, a number of State Governments have introduced social welfare programmes which involve payment to the beneficiaries. Payments are made either through Government offices or through banks or other means like money orders. The Reserve Bank of India has also taken certain initiatives to enlarge the reach of banking facilities to sectors neglected so far through its financial inclusion initiatives in the form of permitting banks to engage Business Correspondents (BC). Coupled with this, the need to channelise the financial benefits extended by Governments, both central and the states, to the weaker and needy sections of the society, to the ultimate beneficiaries using the banking system was also identified. In this background, a Committee was appointed for analysing the relative issues and suggesting an appropriate workable framework for Electronic Benefit Transfer (EBT) system that can be considered for adoption by all State Governments.

Alpana Killawala
Chief General Manager

Press Release : 2007-2008/1376