IDFC Bank Transform Ration Shops into Banking Outlets

IDFC to tie up with convenience stores to aid customer with biometrics enabled banking using ePDS

India: IDFC bank is recruiting Public Distribution System (PDS) agents to convert convenience stores into banking outlets. With ePDS agenda being pushed by various state government, the private bank, after receiving mandate from both Maharashtra and Andhra Pradesh government related to PDS outlet in the region, is also collaborating with Haryana government to offer cashless payment. IDFC bank is using this opportunity to turn distributors into partners rather than converting them into customers.

IDFC Aadhar Pay, in partnership with the Unique Identification Authority of India, was recently rolled out by IDFC bank. Using this service, the customers will be able to use account-to-account transfer facility without debit cards and cellphones. The merchant will have Aadhar enabled point of sale (POS) device with a fingerprint scanner to validate user and there will be no transaction fee to be paid by the merchant.

Rajiv Lal, the MD & CEO of IDFC Bank stated, “In rural and semi-urban areas, where customers need 'assisted digital' banking formats, IDFC Bank's Aadhaar merchant solution is a perfect fit. The merchant benefits from the medium—as this is a new AEPS payment railroad, it has no merchant discount rate attached to it and can provide the service to customers without having to pay the bank a transaction fee”.

TechSci depicts that the government of India is focusing towards developing a digital economy and launching initiatives for banks to embrace biometric banking solution for more secure solution and easy access for customers. The growing focus towards digital economy is driving growth of biometric solution in both government and private BFSI companies, this is expected to cause a surge in India Biometric market in coming years.

According to recently published report by TechSci Research, “India Biometrics Market By Type By End Use Sector, Competition Forecast & Opportunities, 2011-2021”, the country’s biometrics market is projected to grow at a CAGR over 31% during 2016 - 2021. In 2015, the country’s southern region held the largest share in India biometric market, owing to rising industrialization and presence of a large number of leading private sector companies in the region.