Early August, India’s apex financial institution, the Reserve Bank of India announced setting up an ‘Innovation Hub’ to address the chronic challenges to financial inclusion in the nation and market efficient banking services. The drive is mostly by means of National Mission for Financial Inclusion (NMFI), namely, Pradhan Mantri Jan Dhan Yojana (PMJDY) and Direct Benefit Transfers (DBTs) of subsidy considering that August 2014. The objective: supplying universal banking services to each and every unbanked household, securing the unsecured, funding the unfunded and serving the unserved and underserved places.
Driving India’s Inclusive Growth
Technology has been the backbone of this initiative of financial empowerment. Hitachi, a international leader in Social Innovation Business, has been at the forefront of it. Hitachi Payment Services Pvt. Ltd., a Hitachi Group Company, has been leveraging the group’s sophisticated OT (Operational Technology) X IT options to augment the government’s vision and additional create the payments infrastructure in the nation. Innovation in each money and digital payment options has created Hitachi Payment Services (HPY) one of the cornerstones of partnerships with government and private institutions.
Mr Bharat Kaushal, Managing Director, Hitachi India, says, “We believe that a robust payment infrastructure can architect a technologically sound financial backbone of the nation. Hitachi is at the forefront of driving, collaborating, and supporting the Indian government’s mission of financial and digital inclusion. We are Powering Good by mobilizing the nation’s progress through Social Innovation Business solutions that are consistently enhanced to promote steady welfare and provide additional benefits for the people of India.”
A crucial joint venture (JV) initiative illustrates this. State Bank of India (SBI), the nation’s biggest industrial bank and Hitachi Payment Services entered into a joint venture (JV) to make a state-of-the-art card acceptance and future-prepared digital payment platform. The JV, SBI Payments offers a extensive suite of payment choices to shoppers and merchants focusing on the roll-out of a nationwide card acceptance infrastructure, speedy response (QR) code acceptance, Unified Payments Interface (UPI), mass transit sector and e-commerce companies.
Monetary INCLUSION
The ‘National Strategy for Financial Inclusion for India 2019-2024’1 document released by RBI speaks volumes about the good results of numerous initiatives. Over 10 crore PMJDY accounts had been made in more than 2 years, till March’19. The quantity of card acceptance devices of Point of Sale (POS) has enhanced by more than 26 lakhs in 5 years. The procedure and progress is continual.
In the banking sector, Hitachi has created an indelible mark in advancement and inclusive development. First, the government’s efforts to make certain financial sustainability resulted in the advent of smaller sized financial institutions cementing their presence along with multi-varied money dispensing platforms getting set up in the rural sector, seamlessly shifting from standard ATMs to money recycling machines (CRMs) and setting up of White Label ATMs (WLAs). Hitachi Payment Services, below the license from RBI as a designated non-bank entity, established WLAs below the brand ‘Hitachi Money Spot’, mostly engaging Tier 3 to Tier 6 towns. Ever considering that, the common Hitachi Money Spot ATM has empowered citizens by means of enhanced payment infrastructure and revolutionized banking atmosphere in the country’s hinterland.
Mr. Rustom Irani, Managing Director and Chief Executive Officer, Hitachi Payment Services says, “Committed to building a robust and secure payment infrastructure for India, Hitachi Payment Services offers the nation’s most comprehensive range of cash and digital payment solutions. Utilizing advanced and innovative technologies, our end-to-end solutions help meet the changing needs of society while driving payment penetration and further expanding the payment ecosystem in the country.”
Building a technologically sound economic backbone
In architecting a technologically sound financial backbone for India, Hitachi Payment Services offer the nation’s most extensive suite of money and digital payment options. This suite furthers the agenda of creating a robust payment infrastructure with finish-to-finish sophisticated options that caters to financial institutions, merchants and the basic population at big. Along with deployment of WLAs that drive ATM penetration, Hitachi’s one of the most disruptive innovations has been in transforming ATMs to CRMs, taking benefit of National Payments Corporation of India’s recommendation on permitting interoperability of money deposits in the banking sector.
Hitachi CRMs today are practically mini bank branches, enabling financial institutions the chance to extend to the nation’s masses 24×7 money deposit and withdrawal facility, amongst other services. Hitachi has more than 502 per cent of the CRM industry share in India and its services are created to help the Digital India initiatives by means of the show of Bharat QR code for card-significantly less withdrawal, soft-keyboard for information entry of UPI transactions and Aadhaar-enabled biometric functionality.
Hitachi with its sophisticated technological options and in-residence created future-prepared digital payment platform is bridging this gap by delivering innovation and worth to the merchants, therefore contributing towards the Government of India’s vision to transform India into a digitally empowered society and understanding economy.
Hitachi Payment Services is frequently developing the payments ecosystem, meeting the altering requires of society, assisting India’s financial service sector to develop more quickly and driving financial empowerment for the masses. Currently it manages more than 55,000 ATMs (consists of 19,000 money recycling machines), 3,900 WLAs and 1.3 million POS devices (consists of mobile POS & QR), in addition to toll and transit solutions3.
Powering very good, altering life
Hitachi Payment Services’ technologically sophisticated payment options offer higher levels of details safety, reliability and a seamless practical experience, transforming the ease with which payment transactions take place in India today – be it in money or digital. Overall, Hitachi’s Social Innovation Business is POWERING Superior by enhancing the Quality of Life (QoL) for citizens and enhancing the social and financial values of all its stakeholders for a sustainable future.
Know more about Hitachi Social Innovation
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Source 1: https://rbidocs.rbi.org.in/rdocs/content/pdfs/NSFIREPORT100119.pdf
Source 2: As per internal estimates, based on information as of September 2020
Source 3: Data as of September 2020
The short article is sponsored by Hitachi Payment Services