QPR

CDFI Impact Highlights

₹ 13 billion transferred to 4 million women

beneficiaries under Pradhan Mantri Matru Vandana Yojana (PMMVY)

CDFI platform Sunidhi is enabling Ministry of Women and Child Development
implement PMMVY across the country

Beneficiaries enrolled

Till Jun 2018 3.5 mn 5.1 mn
Till Sep 2018

Beneficiaries paid

Till Jun 2018 2.6 mn 4 mn
Till Sep 2018

Amount paid ₹ 7.58 bn ₹ 13.02 bn

Till Jun 2018
Till Sep 2018

CDFI - Quarterly Progress Report | July 2018 - September 2018 3

Benefits of Sunidhi platform in implementing PMMVY

Re-designed the Payment cycle has
process of fund transfer reduced from 18
months – 3 years to
to bring in efficiency, ~ 40 days from the
effectiveness and
improved service date of claim
delivery

Beneficiaries can avail Local Government
benefit from anywhere Directory has been

across the country completely mapped
to monitor benefit
delivery up to the

village level

“Earlier money would take 1-1.5 years but now it’s
in the bank accounts in 10-15 days, also beneficiary
is now using it to buy medicines or other nutritional
requirements.”

CDFI team member talking to an anganwadi
worker in Dhamtari, Chhattisgarh

An elated beneficiary says
she has received her two (2)
installments under PMMVY
scheme within 3 months

CDFI - Quarterly Progress Report | July 2018 - September 2018 4

India Post Payments Bank (IPPB) launched by Hon’ble
Prime Minister on 1st September, 2018

Snapshots from IPPB launch event

CDFI developed web based India Post Payments Bank (IPPB) tracker is
monitoring roll out of 650 branches and 1,54,390 access points

“CDFI has been a key partner to IPPB in
creating a branch tracker through which
each member of IPPB is mapped on to it and
able to create a network of immense scale
to provide last mile service to people. We
are now looking at other services related to
financial literacy which could be taken to
the last mile.”

Mr. Suresh Sethi, MD & CEO IPPB

Each IPPB access point is expected to provide financial services to ~8,000 citizens.

CDFI - Quarterly Progress Report | July 2018 - September 2018 5

Commendation letters and request for continued support
received from Department of Posts and IPPB

“CDFI’s contribution has been invaluable to us during the past months. We are glad with the
work assistance from CDFI which has been effective since the beginning days.”

Tanweer Qamar Mohammad
Deputy Director General
Department of Posts

“Kindly extend your support to IPPB and also work on the
enhancements to the tracker.”

Gursharan Rai Bansal
CGM & CSMO, IPPB

CDFI - Quarterly Progress Report | July 2018 - September 2018 6

Union Minister Mr. Ravi Shankar Prasad
launched DigiVAARTA in New Delhi

Union Minister for Electronics & Information Technology and Law & Justice, Mr. Ravi Shankar Prasad along with ED, CDFI
Mr. Krishnan Dharmarajan and other dignitaries at the launch of DigiVAARTA on 28th September, 2018

Government has launched DigiVAARTA campaign to promote digital payments
using CDFI supported Samwad, a mobile based platform

• The program is expected to reach out to 60 million citizens in national capital region in the first phase itself
• 14444 toll free number to make the campaign zero cost for citizens
• DigiVAARTA to be rolled out in languages other than Hindi and English across the country

• Samwad is ideally positioned inside MeitY to carry out financial / process literacy campaigns and awareness
programs on govt. initiatives
• MeitY views Samwad as a strategic tool to help achieve its ambitious target for digital transactions

CDFI - Quarterly Progress Report | July 2018 - September 2018 7

Union Minister, Mr. Ravi Shankar Prasad’s
comments on DigiVAARTA

”DigiVAARTA is a welcome addition to the government’s drive to promote
adoption and awareness on digital payments. It is an easy way to educate
citizens on the use of digital tools for banking and payments”

Ravi Shankar Prasad
Union Minister

Ministry of Electronics & Information Technology

Union Minister’s tweet on 8
DigiVAARTA launch event

CDFI - Quarterly Progress Report | July 2018 - September 2018

Maharashtra’s Village Social Transformation Foundation
(VSTF) is transforming 1,000 villages worst
affected by drought in the state

Projects related to themes such as water, agriculture & livestock, health, sanitation, education,
nutrition, skill development, entrepreneurship etc are being created and monitored using Sunidhi
in Maharashtra

Sunidhi is enabling VSTF directly transform the lives of more than 2.4 million people
in these villages

• 400 villages covered impacting 500,000 (apx) villagers
• Around 1,000 projects worth ₹19.4 million are being tracked using Sunidhi mobile app
• Payments to 1,075 unique service providers being tracked through the system

CDFI - Quarterly Progress Report | July 2018 - September 2018 9

Village Development Plan (VDP) developed for a village
adopted by Member of Parliament under Saansad
Adarsh Gram Yojana (SAGY)

Goals defined for developing VDP under SAGY

Data-driven approach to develop VDP being implemented at Behpur village, Mandsaur
district in Madhya Pradesh

• Data collection of every household in the village conducted using mobile extension of SANKALP
• Analysis of the collected data completed using SANKALP and VDP prepared alongwith
defined targets, outcomes and parameters to be monitored
• VDP to be presented to the MP, Mandsaur in next month

CDFI - Quarterly Progress Report | July 2018 - September 2018 10

18 Farmer Producer Organizations in Tamil Nadu
and Bihar are using KANCHI to perform business

and financial activities

~ 21,000 small and marginal farmers’ financial transactions being
captured through the platform

14 FPOs are managing their shops for selling
farm inputs

Transactions worth ₹ 2.1 million facilitated

Financial profile of milk farmers getting generated

9 milk collection centres digitized in Tamil Nadu impacting 907 farmers with
half of them being women
₹ 10 million worth of payments made directly in the bank accounts of milk farmers

Loan repayments of farmers getting captured

Loans worth ₹ 7.5 million to 210 farmers and their repayments getting tracked

16 more FPOs in Bihar are being Women pouring milk at a milk collection centre,
digitized impacting additional digitzed by CDFI, in Tamil Nadu
40,000 farmers
CDFI will also be digitizing 11
operations of 16,000 maize
farmers in Odisha and linking
with NCDEX e-Markets Ltd.

CDFI - Quarterly Progress Report | July 2018 - September 2018

Other Highlights

CDFI - Quarterly Progress Report | July 2018 - September 2018 12

1. Assam government keen on using CDFI innovations for

projects related to rural transformation and direct benefit transfers

a) Mr. Kailash Karthik N, IAS, Joint

Secretary, Finance Deptt., Assam
Government visited CDFI office on
18th July, 2018. CDFI innovations were
demonstrated to him and how these
innovations could be used in the State
in DBT, education and transformation
areas.

Mr. Kailash Karthik N, IAS, Joint Secretary, Finance
Deptt, Assam Govt. with Mr. Krishnan Dharmarajan,

ED, CDFI and other CDFI team members

b) Follow up to the meeting, CDFI team

then met with other key Assam
Government officials including
Mr. Karthik in a workshop held on
27th July, 2018 in Guwahati.

CDFI showcasing it’s innovations
at the meeting

CDFI - Quarterly Progress Report | July 2018 - September 2018 13

c) CDFI then in collaboration with Assam Government and UNDP conducted a workshop

on transforming villages using Sunidhi in Guwahati on 13th August, 2018.

CDFI team at the workshop alongwith UNDP
and Assam Govt. Officials

The State Government is interested in using Sunidhi for implementing village transformation
projects and discussions are underway with the Government.

d) CDFI team visited two (2) milk cooperatives in Assam on 27th-28th July, 2018.

CDFI team at the milk cooperatives in Assam

The State Government is interested in using KANCHI for digitizing the operations of 26 milk
collection centres having about 18,000 milk farmers. Proposal has been submitted to the
Department of Animal Husbandry and Veterinary, Government of Assam.

CDFI - Quarterly Progress Report | July 2018 - September 2018 14

2. Partnerships formed with stakeholders for rolling

out KANCHI in other geographies

a) CDFI and Access Development Services

signed an MoU on 10th July, 2018
to maximize the outreach and effective
implementation of financial inclusion
projects specifically in the area of
agriculture and empowerment of
farmers using digital technology tools.

CDFI and Access Development Services
teams signing the MoU

b) Dalmia Bharat Foundation visited CDFI’s FPOs

in Tamil Nadu on 9th July, 2018. The objective
of the activity was to understand the
functioning of these digitized FPOs, and also
to introduce and familiarize the officials with
CDFI’s KANCHI platform. Foundation has
expressed interest in using KANCHI in its FPOs
in Dalmiapuram and Ariyalur.

CDFI and Dalmia Bharat Foundation
team on a visit to FPOs digitized by CDFI

CDFI - Quarterly Progress Report | July 2018 - September 2018 15

c) CDFI participated in the Krishi India 2018 Expo held in New Delhi from August 20-22, 2018. The

expo was organised by India Trade Promotion Organization (ITPO), Department of Commerce
and Exhibitions India Group (EIG). ED, CDFI was part of a panel session on – ‘Marketing
innovations and technologies in agriculture’ held at the expo.

CDFI team at the stall in the Krishi India Expo ED, CDFI speaking at the
Krishi India Expo

3. The District Collector (DC) of Mahabubnagar, Ronald Rose chaired a review meeting
with the representatives of CDFI, Aga Khan Academy and anganwadi teachers regarding the
implementation of Benefit Entitlement Tracking Solution (BETS) in 44 anganwadi centres
across the district.

District Collector, Mahabubnagar, Mr. Ronald Rose chairing the review meeting

Satisfied with the overall progress of the BETS implementation in the 44 anganwadis,
DC also discussed the roadmap to scale up BETS across 1,883 anganwadis in the district.

CDFI - Quarterly Progress Report | July 2018 - September 2018 16

4. SANKALP presented to senior leadership
team from National Informatics Centre
(NIC) on 23rd August, 2018.

NIC team interested in exploring and
understanding SANKALP’s capabilities,
unique features in data analytics and
capability to handle large data sets existing
in the NIC data centres. Based on NIC’s
interest, CDFI has submitted a proposal.

CDFI team member presenting
SANKALP to NIC, Delhi

5. Ministry of Minority Affairs has shown keen interest in using 17
Samwad for assessing their ‘Naya Savera’ scheme. The
scheme provides financial assistance to students for
preparing them for competitive examinations.

The Ministry has shown interest in using Samwad to get
direct feedback from students. An approach note has been
shared with the Ministry for using Samwad and discussions
are ongoing on the approach to be followed for engaging
CDFI.

CDFI - Quarterly Progress Report | July 2018 - September 2018

6. CDFI signed MoU with National Rural
Livelihoods Mission (NRLM), Ministry
of Rural Development, Government of
India to conduct impact study for
Deendayal Antyodaya Yojana (DAY). The
study will assess the level of digitization
of SHG’s network and how digital
technology can improve and sustain their
livelihood.

Mr. Atal Dulloo, JS, NRLM, Ms. Nita Kejriwal,
Director, Rural Livelihoods, NRLM, Ms.

Anita Baghel, Director, Financial Inclusion
Department, NRLM and Mr. Krishnan

Dharmarajan, ED, CDFI at signing of MoU
between CDFI and NRLM

7. CDFI innovations – SANKALP, KANCHI and
Sunidhi were showcased in a Bill and
Melinda Gates Foundation organised
event to a 20 member delegation from
Tanzania’s President’s Office and
Government on 12th July, 2018.

CDFI’s innovations being presented to
members from Tanzania’s President

and Government Office

CDFI - Quarterly Progress Report | July 2018 - September 2018 18

Contents

01

CDFI Overview & Approach

02

CDFI Innovations

03

Financial Information

CDFI - Quarterly Progress Report | July 2018 - September 2018 19

01 OVERVIEW

CDFI was established in September 2014 with Since then, CDFI has grown into an innovative
funding support from Bill & Melinda Gates and vibrant organization with offices in Delhi and
Foundation, Michael and Susan Dell Foundation, Bengaluru.
Omidyar Network, Tata Trusts, and institutional
support from Institute for Financial Management
and Research (IFMR).

The primary objective of the Centre is to reduce 20
inequities in financial access and services using
technology. The Centre, therefore has been
developing, testing and scaling innovative digital
solutions in collaboration with its partners. CDFI’s
tech partners for innovations are typically small agile
firms and startups, while it works with larger public
and private partners for testing and scaling. Some
solutions are being implemented as part of large
scale and impactful government programs.

CDFI - Quarterly Progress Report | July 2018 - September 2018

CDFI Objective

CDFI was established to fulfill the need for a dedicated digital
financial inclusion intermediary for promoting product development
with applications in Government to People (G2P) and non-G2P space.
CDFI objectives are therefore aligned with government’s DBT strategy
and are aimed at underprivileged, rural, or otherwise excluded
population segments:

• Drive payments made to excluded population segments
onto digital platforms
• Work with commercial providers to test and scale new
digital payments innovations
• Develop and scale new digital payment use cases
• Analyse policy / program implementation frameworks to
help create an enabling environment for digital financial inclusion
• Create public goods to accelerate diffusion of best practices
for financial inclusion

CDFI, therefore uses technology to support benefit transfers and open doors for the poor to the financial
mainstream.

CDFI - Quarterly Progress Report | July 2018 - September 2018 21

CDFI APPROACH

IN-HOUSE / START UPS AND
INTERACTIONS WITH SMALL TECH FIRMS
GOVT. AND ACADEMIC
2
INSTITUTES
Taps into small
1 but committed
firms to solve
Identifies key critical problems
problems for
transformational CENTRE GOVT. / STATE
GOVTS. / CORPORATES /
impact
FOUNDATIONS
LOW COST,
MULTI-DOMAIN, PLUG 4
& PLAY AND SCALABLE
Builds
INNOVATIONS partnerships &
business models
3
for scaling
Establishes
framework to 22
create impact
with limited

resources

CDFI - Quarterly Progress Report | July 2018 - September 2018

Market gaps being addressed by CDFI

Multiple gaps are required to be bridged to include unbanked/underbanked citizens in the financial main stream.
These gaps are either not being addressed or are being addressed inadequately by govt. bodies, private sector or not
for profit organisations. After detailed analysis of country’s FI space and deliberations with relevant stakeholders, CDFI
clearly defined the market gaps that it is going to focus on. The gaps identified are fundamental to promote financial
inclusion and need immediate technology interventions to maximize the reach and availability of financial services.

Direct Awareness Design GAP Payments
benefit GAP GAP
transfers gap Misallocation of funds
Low awareness and exclusion errors Non-digitization
Govt’s DBT drive among citizens due to incomplete of core activities
to digitise G2P regarding information while involved in individual
payments not processes involved designing the or community based
producing desired in availing govt. program programs resulting in
results benefits or financial Inadequate analytics payment delays and
services to assess program reduced impact
effectiveness and
impact Cash is still being used
at the last mile in rural
development programs

GAPS

Financial Inclusion

Credit and Small & marginal farmers have limited access to cheaper capital and markets,
market hence caught in debt trap
access gap
70% of Indian population depends on agriculture, which is predominantly
Rural poor has cash-based
inadequate access to
credit and markets In 2013, more than a fourth of the total credit taken by farmers came at interest
rates of 36% per annum

CDFI - Quarterly Progress Report | July 2018 - September 2018 23

CDFI innovations addressing
the market gaps

Direct benefit Samwad SANKALP Sunidhi
transfers gap
Mobile based First ever business A product driven
interactive platform intelligence approach for rapid
to deliver literacy, platform for roll out of govt.
awareness, governments programs in (cash
outreach campaign built on big data or in kind) in dbt
technologies mode

Credit and INNOVATIONS
market
access gap KANCHI

Cashless payments enabled digital platform that caters to business ,
operational and financial activities of farmer producer organizations
– selling inputs, milk aggregation, produce grading and aggregation,
leasing of farm equipment, on-lending, connecting farmers and buyers

CDFI - Quarterly Progress Report | July 2018 - September 2018 24

PROJECT PARTNERS

NATIONAL INFORMATICS
CENTRE

aavin

CDFI - Quarterly Progress Report | July 2018 - September 2018 25

Technology Partners

CDFI has collaborated with niche technology firms to develop and scale technology solutions in the
area of financial inclusion. Some of these firms are:

Billion Lives Business Initiatives Pvt. Ltd. Flexicode Technologies Pvt. Ltd

PIANA IT Solutions Pvt. Ltd Myndgenie Systems Pvt. Ltd

I-exist Technology Solutions IdeaPlunge Solutions LLP
Private Limited 26

CDFI - Quarterly Progress Report | July 2018 - September 2018

02 CDFI INNOVATIONS

CDFI - Quarterly Progress Report | July 2018 - September 2018 27

Approved budget : Budget utilized :
₹22,141,945
SANKALP₹35,686,000

The first step in SANKALP provides analytics and tools to design

enabling DBT schemes in scientific manner by plugging together

is to design multiple databases such as population related (SECC)

benefit programs or scheme specific (PDS) and allowing to run various

efficiently and effectively i.e. covering intended scenarios. The platform enables benefit program

beneficiaries only, providing adequate and required design (creation of new schemes and modification

benefit, and defining benefit delivery process of existing benefit schemes) based on various socio-

clearly. As per the Economic Survey 2016- 17, the economic conditions of the individuals/households.

overall misallocation of funds on social programs SANKALP has been specifically developed to address

is 17%, mainly due to poor planning. This amounts the requirements for designing benefit schemes

to a huge loss of resources and opportunity to for the Central and State Governments in India. The

uplift the underprivileged. In order to help policy platform ensures clear visibility regarding details

makers design or modify social programs and of the final beneficiary and the benefits they are

identify beneficiaries for whom these programs are receiving, which helps in minimizing inclusion and

intended, CDFI developed a web-based analytics exclusion errors and in developing holistic social

platform SANKALP (Scheme Analysis and Knowledge benefit programs.

Aggregation for Launching Programs). SANKALP

has been designed in close consultation with

Expenditure Management Commission, Ministry of

Finance, and with inputs from NITI Aayog and State

Governments.

CDFI presenting SANKALP to NIC officials

CDFI - Quarterly Progress Report | July 2018 - September 2018 28

CDFI presented SANKALP to the District Collector, South West Garo Hills, Meghalaya. State Government
is interested in using SANKALP to take appropriate decisions in education and health sectors. National
Informatics Centre has also shown interest to use on SANKALP. to analyse large data sets existing in the
NIC data centres. A proposal has been submitted to NIC for the same.

Determine Analyze Compare Schemes;
Potential of Existing Population Compare Actual
Vs Potential
Scheme Data Beneficiaries

Monitor Existing
Schemes

Conduct
Surveys

Population Data Scheme
(Pluggable) Beneficiary
Data (Pluggable)

CENTRAL REPOSITORY Perform Impact
FOR SCHEMES Assessment

Auxiliary Data Functionalities of SANKALP
(Pluggable)

CDFI - Quarterly Progress Report | July 2018 - September 2018 29

Approved budget : Sunidhi Budget utilized :
₹79,990,240 ₹69,498,249

Various schemes have that seeks to deliver different types of Centre/
been rolled out in State Government’s benefit programs either in
DBT mode, however, cash or in-kind in DBT mode maintaining complete
there are a number track of benefit delivery and fund movement.
of Central and State Government schemes that Sunidhi is a cloud based end-to-end solution
still need to be covered and adequately digitized. for defining benefit delivery mechanism and
Schemes that are being delivered in DBT mode, approval processes, onboarding benefit delivery
either have a stand-alone system (which is expensive providers, onboarding beneficiaries, integrating
and time consuming) or only the direct payment with Aadhaar for beneficiary authentication /
in the bank account part has been introduced. In validation, integrating with PFMS for transferring
such a scenario, an IT system was required to quickly funds in beneficiary’s account and tracking
implement schemes in DBT mode by bringing program milestones, benefit delivery and funds
multiple stakeholders together, linking with external utilization. Sunidhi digitizes the entire program
systems such as PFMS and Aadhaar, and enabling implementation back-end thereby providing
online approvals, monitoring program delivery and complete trail of fund utilization and the resulting
tracking fund flow. As a solution to this situation, impact.
CDFI developed a cloud-based product Sunidhi

Technology enabled program Payments made directly to
roll-out with conditional beneficiary’s bank account
cash transfers

End-to-end tracking of program Monitoring & assessment
activities & fund utilization of programs

Transparent & effective utilization of funds through Sunidhi 30

CDFI - Quarterly Progress Report | July 2018 - September 2018

Pradhan Mantri Matru Vandana Yojana implementation using Sunidhi

Sunidhi is currently being used in delivering the country’s leading Direct Benefit Program for pregnant &
lactating mothers, Pradhan Mantri Matru Vandana Yojana (PMMVY), announced by the Prime Minister in
December 2016.
This is a nationwide program under which ₹ 5,000/- is being transferred, in three installments, in the bank
accounts of pregnant and lactating mothers for fulfilling their nutritional requirements.

Seamlessly Integrated
with Aadhaar and PFMS

Aligned with LGD (Local Facility to Export Data
Government Directory) Codes to DBT Bharat Portal

Permits Beneficiary
to avail Benefits

over Multiple Pregnancies

Permits Migration of Comprehensive end-to-end
Beneficiaries Anywhere in India DBT Solution

All Scheme Conditionality
Verified by Software Application

As of 30th September, 2018, ₹ 13.02 billion worth payments have been made to 40, 93, 665 beneficiaries
across all states and UTs. Activities related to integration with third party systems of Tamil Nadu and
Telangana in progress.
The Ministry has floated an RFP to maintain operations in continuing implementation of PMMVY scheme
and KPMG team has moved to ministry for maintaining operations where ministry is to bear their expenses.
Assam Government is also interested in using Sunidhi for transforming villages in Assam using Government
and CSR funds.

CDFI - Quarterly Progress Report | July 2018 - September 2018 31

CDFI customized Sunidhi for implementing Maharashtra’s Village Social Transformation Foundation’s
village modernization program under which 1,000 villages (which are worst affected by drought and have
low Human Development Index) are being transformed in the state. Projects to be undertaken under this
program will provide digital connectivity, water security, skills training, and improved agricultural, education,
health and sanitation facilities to the villagers. A novel hybrid mechanism for executing and funding village
transformation projects has been devised by the state. Several corporates have been on-boarded by the
foundation to fund the program under an arrangement where the state government matches the corporate
contribution. A dedicated fellow has been assigned to a cluster of 3-4 villages who is responsible for creating
projects for the village, identifying service providers and monitoring implementation.

CDFI developed a mobile extension of Sunidhi for fellows to create, execute and track projects in their
respective villages. VSTF team, government officials and corporates use Sunidhi’s web portal to manage and
monitor program implementation at the villages. Currently, transformation projects are being executed in
400 villages in rural Maharashtra by 150 fellows using CDFI’s solution.

Projects Funds
created disbursed

446 projects 998 projects ₹ 9.9mn ₹ 19.5mn
(Sept.-2018)
(June-2018) (June-2018) (Sept.-2018)

CDFI - Quarterly Progress Report | July 2018 - September 2018 32

Using this experience of managing a state-wide program to transform targeted villages with corporate
support, CDFI carried out a field study to understand other central and state government’s rural
development programs such as Saansad Adarsh Gram Yojana (SAGY). CDFI team accompanied Mr. Sudhir
Gupta, Member of Parliament, Mandsaur to his adopted village to understand SAGY implementation first
hand. After studying various rural development initiatives, CDFI ascertained that a common approach was
being followed for execution.

EXECUTION & TRACKING

1 Create Projects 1
and Allocate Work
Create users,
2 Document Committees &
Completed Work Approval Workflow

Geotag Assets 3 2 Approve VDP and Make Payments to 4
Created Allocate Funds Service Providers

3 Monitor Activities 35Track Fund Utilization &
(MIS and Dash-
board) Generate Reports

Project Tracking App Program Management
Platform

PLANNING

Data 1 Collect village 1Analyse Data Analytics
Collection and household data Platform
2
App 2 Conduct surveys Develop VDP
(Impact assessment)

Typically, following approach is used for implementing rural transformation programs – data collection,
village specific plan development, followed by execution and monitoring. Household level data has been
collected from over every household from Behpur village in Mandsaur district, Madhya Pradesh. SANKALP
then analysed the data collected and compared the analysis with data sets of already transformed village.
The village development plan thus prepared is to be presented to the MP, Mandsaur next month.

CDFI - Quarterly Progress Report | July 2018 - September 2018 33

Approved budget : BETS Budget utilized :
₹193,700,000 ₹28,575,000

Benefit Entitlement Tracking Solution

Despite massive funds flowing into social programs, development has been
slow and there is huge mismatch between outcomes achieved and funds
spent. One of the primary reasons behind this poor performance is inefficient
delivery and tracking mechanisms adopted by various government departments
leading to leakages and benefit not reaching the ones who need them most.
CDFI’s technology platform, BETS is trying to solve this problem by delivering
and tracking benefits at the final mile using a basic smartphone. Use of a smart
digital solution will enable plugging the leakages in benefit delivery and ensuring benefits are provided to
the intended beneficiaries.

BETS is a web and mobile based innovation that facilitates in-cash as well as in-kind benefit delivery at the
last mile. BETS can be used to –

• Digitize beneficiary data at source
• Provide a unique framework to address core issues in benefit delivery such as authentication and process

monitoring in a transparent manner
• Transfer funds directly in beneficiary’s account or in case of in-kind benefits, validate that benefit has been

delivered and transfer funds directly in service provider’s bank account
• Simplify inventory management (in case of in-kind benefits)
• Facilitate reconciliation between the sponsor and service providers

CDFI - Quarterly Progress Report | July 2018 - September 2018 34

TRACKING BETS is being used by Telangana government to track
NUTRITION DELIVERY nutrition delivery to children and women at anganwadis
IN ANGANWADIS IN in Mahabubnagar district. The solution has been rolled out
across 44 anganwadis and nutrition, health and preschool
TELANGANA education activities of 1,540 beneficiaries (women and
children) is being monitored using BETS daily.

CDFI met with Ms. Kavitha, Member of Parliament, Nizamabad
constituency and Dr. Yogita Rana, District Collector,
Nizamabad on 20th May, 2018 and presented its innovations
BETS and KANCHI. Following the meeting, implementation
of BETS in Nizamabad was given an in-principal approval.
CDFI team then visited Nizamabad to develop a better
understanding of the anganwadi operations in Nizamabad.
The project will be taken up in 1,039 anganwadis
of the district.

BETS has been integrated with eNikshay suite (a web based solution for CASH INCENTIVES
monitoring TB patients) to ensure processing of payments in the form TO TB PATIENTS
of reimbursements and incentives to TB patients and agencies
(chemists, labs, doctors, compounders). BETS tracks patient’s adherence FOR COMPLETING
to the course and on achievement of certain milestones cash is TB COURSE
transferred in the respective bank accounts.
So far, using BETS, more than
₹ 32 million have been transferred into
the bank accounts of 180,000
beneficiaries (163,102 TB patients and
14,655 agencies) for adhering to the
treatment cycle. Central Tuberculosis
Division, Ministry of Health and Family
Welfare has approached CDFI to work
with them for DBT with their new
program partner.

CDFI - Quarterly Progress Report | July 2018 - September 2018 35

Approved budget : Samwad Budget utilized :
₹16,033,000 ₹10,409,406

Leveraging the The DigiVAARTA platform has been installed inside
presence of more National Informatics Centre (NIC) and integrated
than 1 billion phone with NIC SMS gateway to enable SMS interactions
users in India, CDFI with citizens using a special toll free number
has supported a assigned by DoT for DigiVAARTA.
digital learning and outreach platform Samwad. It The DigiVAARTA mobile app has also been
is an interactive, adaptive and multilingual mobile developed and the campaign was launched by
based platform to engage and interact over mobile Union Minister for Electronics & Information
app, SMS and IVR. Samwad has been developed Technology, Shri Ravi Shankar Prasad on 28th
for delivering financial literacy campaigns as nearly September, 2018.
76% of adult population in India do not understand The program is expected to reach out to 60 million
even the basic financial concepts. Samwad can citizens in National Capital Region in the first phase
also be used for effective outreach, awareness and itself
assessments as it directly engages with individual
mobile phone subscriber.

As part of government’s drive towards promotion
of digital payments, MeitY sought the support
of Samwad for promotion of digital payments to
interact with citizens through SMS, mobile app and
out-bound dialer, namely ‘DigiVAARTA’. The program
is expected to reach out to 60 million citizens and
engage atleast 7 million of them by July 2018. CDFI
has developed the content for the promotion using
Samwad and has got the required approval from
TRAI for rolling out the DigiVAARTA campaign. CDFI
worked with NIC to enable a toll free number 14444
for sending and receiving messages. DigiVAARTA
content has been developed in 2 (two) languages.

Snapshots of
DigiVAARTA mobile app

CDFI - Quarterly Progress Report | July 2018 - September 2018 36

Approved budget : KISAN ADVANCEMENT THROUGH Budget utilized :
₹60,567,942 CASHLESS INNOVATION (KANCHI) ₹48,487,017

Once cash Financial transactions arising on account of such
is in the bank organized economic activity, when enabled through
accounts of bank accounts in formal financial institutions, keep
excluded segments the individual farmer’s account active and effectively
(through DBT), technology interventions are links him / her to a financial institution.
required to link their other income sources to
bank accounts and to provide avenues to transact KANCHI is a web and mobile based platform
digitally so as to capture their accurate financial digitizing typical activities of an FPO such as input /
profile for easy access to affordable credit. With output aggregation, milk collection, farm equipment
agriculture (and related activities) being the main leasing, lending and repayment and market linkage.
source of income for majority of poor and excluded KANCHI supports digital payments and seeks to
segment of Indian population, CDFI’s approach is to throw light on rural households’ income generation
support government’s initiative to organize farmers’ capabilities and their credit worthiness.
businesses and operations under Farmer Producer
Organizations (FPOs). CDFI in collaboration with
National Agro Foundation has developed a solution,
KANCHI that digitizes the operations of FPOs and
digitally captures business/ financial transactions.

CDFI - Quarterly Progress Report | July 2018 - September 2018 Snapshot of KANCHI’s
Farmlease app

37

It captures FPO’s and individual farmer’s lending and repayment information. Financial Institutions can use
this information to provide credit to these farmers based on their loan repayment capabilities and behavior.

KANCHI is a technology platform for FPOs that puts farmers at the center. KANCHI digitizes the entire
business operations and financial activities of an FPO, links FPOs and farmers with all the stakeholders in the
value chain including agriculture markets, maintains the entire profile of a farmer and his/her household,
including financial history.
KANCHI is digitizing processes and payments related to buying, selling of inputs such as seeds and fertilizers,
leasing of farm equipment, and selling of milk at local milk aggregation centers.

VARIOUS MODULES OF KANCHI FPO Run
Shops
Market
Access

Farmer Investor
Services

Warehouse Milk Aggregation
Digitization and Sales

Loan and
Recovery system

Farm Produce
Equipment Aggregation

Leasing

CDFI - Quarterly Progress Report | July 2018 - September 2018 38

Development Current Status 9030 farmers
under progress of KANCHI issued share
in certificates in
Tamil Nadu
14 FPOs

Warehouse Farmer
Digitization Investor
Service
& Market
Access

Development Produce FPO Run Live since
under progress Aggrega- Shops 13th March

tion 2018

Loan and Farm
Recovery Equipment
System
Leasing
Tracking Loans Milk
Aggrega- Live
worth ₹ 7.5 tion and

million provided Sales

to 210 Farmers

Live in 9
Collection Centres

with 907 milk
farmers pouring

milk daily

CDFI - Quarterly Progress Report | July 2018 - September 2018 39

CDFI has partnered with Department for International Development (DFID) for implementation of KANCHI
in Bihar. KANCHI is being implemented across 20 FPOs in Bihar in coordination with the Technical assistance
Support Team of DFID funded Bihar Agricultural Growth and Reform Initiative (BAGRI-TAST). 1000 farmers
from first 4 (four) FPOs have been on boarded on KANCHI platform. 16 more FPOs to be digitized impacting
40,000 farmers. CDFI and Access Development Services signed an MoU on 10th July, 2018 to maximize the
outreach and effective implementation of financial inclusion projects specifically in the area of agriculture
and empowerment of farmers using digital technology tools. CDFI will also be digitizing financial
transactions of 16,000 maize farmers in Odisha CDFI team visited FPOs in Jaipur supported by Access
Development Services under its Dhara Shakti project. The project incubates and strengthens 40 FPOs
across 16 districts under the Rashtriya Krishi Vikas Yojana, Rajasthan.

A milk farmer in Tamil Nadu pouring 40
milk at the collection centre

CDFI - Quarterly Progress Report | July 2018 - September 2018

Approved budget : SUPPORT TO MINISTRY Budget utilized :
₹19,488,000 OF ELECTRONICS AND ₹11,332,702
INFORMATION TECHNOLOGY
(MeitY) FOR IMPLEMENTING
DIGIDHAN MISSION

MeitY is the nodal ministry for spearheading promotion and adoption of digital payments in the country.
The Government has launched Digidhan Mission in the Union budget of 2017-18 with a target of 25 billion
digital payment transactions. MeitY which is heading the Digidhan Mission is also responsible for creating
requisite enabling infrastructure for government’s digital payments service delivery, electronic payments
and receipts (EPR) and direct benefit transfer program.

• CDFI is thus supporting MeitY by providing strategic support for Digidhan Mission
• The engagement with MeitY included preparation of an ‘EPR framework for Government departments’
which has been adopted by the government

Further, CDFI assisted MeitY in structuring and conducting the dissemination workshops (national and
regional) on EPR framework in partnership with National Payment Corporation of India.

So far, one national workshop and 5 (five) regional workshops have been conducted for government
officials in government officials in Guwahati, Hyderabad, Bhopal, Chandigarh and Thiruvananthapuram.
CDFI is presently working with MeitY on deploying ‘EPR portal’, a web-based platform for data compilation,
periodic updation and support for monitoring expedited adoption of EPR framework across Central & State
Ministries.

CDFI - Quarterly Progress Report | July 2018 - September 2018 41

CDFI supported MeitY in analyzing the impact of subsidizing MDR charges on debit card transactions at
PoS for value less than or equal to ₹2000/-. Government adopted the recommendations and published a
notification that the MDR charges will be borne by the government for two years with effect from January 1,
2018 for debit card / BHIM / UPI / AePS transactions. Additionally, CDFI is now supporting MeitY to carry out
2 (two) research activities:

CDFI initiatives in partnership with MeitY

Supporting Central
Line Ministries &
Departments to
Develop their
Digital Payments

Transformation Plan

Developed Framework Conducted EPR
& Guidelines for Awareness Workshops
for Adoption of Digital
Electronic Payments Payment in Government
& Receipts (EPR)
Departments at
for the Government Central & State Level

Developing Dashboard
for Tracking Adoption

• Identifying challenges in adoption of digital payments
• Assessment of incentivisation offered by various Central Government Ministries in promoting digital
payments and effectiveness of the same in view of MDR and convenience fee charged for digital payments

CDFI - Quarterly Progress Report | July 2018 - September 2018 42

CDFI support to Digidhan Mission
CDFI team has been providing strategic and operational support for Digidhan Mission to MeitY. CDFI team
was instrumental in the design of the following incentive schemes to popularize payments through BHIM
UPI:
• Referral bonus scheme for individuals
• Cashback scheme for merchants

MeitY vide their letter dated 5th March, 2018 appreciated CDFI’s support during 2017-18 for achieving over
80% target of enabling 25 billion digital transactions.

CDFI team has supported MeitY in the design and allocation of BHIM, BHIM Aadhaar, Digital Payment
Transaction and PoS deployment targets for FY 2018-19 for the banks and comparative analysis of various
wallets with respect to the data privacy standards.

MeitY has set target of 30 billion digital payment transactions for 2018-19. Additional target of 2 million PoS
has been allocated to acquirer banks in order to drive payment infrastructure growth in the country.

CDFI - Quarterly Progress Report | July 2018 - September 2018 43

Approved budget : SUPPORT TO DEPARTMENT Budget utilized :
₹16,996,500 OF POST FOR SETTING UP ₹15,787,047
THEIR PAYMENTS BANK

India Post Payments Bank (IPPB), one among the 11 CDFI is assisting DoP in the domains of regulatory
entities which received Payments Bank license from compliance, organizational design, human
RBI, is 100% owned by Department of Post (DoP). resources, preparation of training modules &
Leveraging the department’s network of 155,000 schedules, branch layout designs through expert
post offices, reach (over 110 million existing account resources and researchers. CDFI has also developed
holders), and resources (over 300,000 postmen and a web based tracker platform for monitoring rollout
gramin dak sewaks), IPPB aims to deliver simple, low of branches and access points including deployment
cost, quality financial services at the doorstep to its of infrastructure, resources and facilities. CDFI has
customers predominantly in rural areas all over the been engaged with DoP since 2015 for providing
country. IPPB will have 650 branches and 155,000 strategic and program management support in IPPB
access points in a hub and spoke model covering rollout.
129,000 rural areas and 25,000 urban areas.

Snapshots from the IPPB tracker monitoring implementation progress 44

CDFI - Quarterly Progress Report | July 2018 - September 2018

Snapshot of the IPPB mobile app

The platform has been launched with over 800 users at central, circle and branch levels. The tracker assists in
monitoring rollout activities of 650 branches and 155,000 access points in various phases offering snapshots
of implementation progress at micro and macro levels.

A mobile app developed by CDFI to support tracking of implementation of India Post Payments Bank (IPPB)
has also been launched on the Google Play store.
India Post Payments Bank (IPPB) launched by Hon’ble Prime Minister on 1st September, 2018. Each IPPB
access point is expected to provide financial services to ~8,000 citizens
The web based tracker is enabling IPPB to roll out all its branches within stipulated time frame
SC approved to continue support to IPPB for one (1) more year in driving GOI’s agenda of financial inclusion

As part of the engagement, CDFI also conducted field research to understand preferences regarding usage
of existing remittance products by migrant labourers and provide inputs for design of an appropriate new
remittance product. The product is expected to address the needs of 12 million migrant labourers in the
country and their households in rural areas serviced by IPPB outlets. Survey has been completed and final
report with design is in progress.

CDFI - Quarterly Progress Report | July 2018 - September 2018 45

03 FINANCIAL INFORMATION

CDFI - Quarterly Progress Report | July 2018 - September 2018 46

CDFI - FUND BALANCE

Particulars BMGF MSDF CDFI - BMGF - Total
income PMMVY

Opening balance ₹ 172,366,770 -₹ 12,000,000 ₹ 530,382 ₹0 ₹ 160,897,152
as on 1-Jul-18

Add: Funds received ₹ 12,000,000 ₹0 ₹ 28,636,783 ₹ 208,841,789
during the reporting ₹ 168,205,006
period

Add: Interest on the
funds during the
reporting quarter ₹ 3,848,417 ₹0 ₹0 ₹ 390,332 ₹ 4,238,749

Add: Income ₹0 ₹ 0 ₹ 228,946 ₹ 0 ₹ 228,946
earned during the
reporting period

Funds available ₹ 344,420,194 ₹ 0 ₹ 759,328 ₹ 29,027,115 ₹ 374,206,637
₹ 0 -₹ 58,231,561
Less: Expenses -₹ 58,231,561
incurred during the ₹ 759,328 ₹ 29,027,115 ₹ 315,975,076
reporting period*

Closing balance ₹ 286,188,633 ₹ 0
as on 30-Sep-18

CDFI - Quarterly Progress Report | July 2018 - September 2018 47

Particulars Budget Expenditure Variance %

Initiatives ₹ 58,082,288 ₹ 24,513,976 ₹ 33,568,312 58%

Personnel ₹ 17,120,531 ₹ 17,679,355 -₹ 558,824 -3%

Consulting ₹ 550,000 ₹ 414,026 ₹ 135,974 25%
Travel ₹ 3,350,000 ₹ 1,727,367 ₹ 1,622,633 48%

Fixed Assets ₹ 990,250 ₹ 3,181,828 -₹ 2,191,578 -221%

Admin support ₹ 3,071,748 ₹ 3,880,373 -₹ 808,625 -26%
costs

Sub-total ₹ 83,164,817 ₹ 51,396,925 ₹ 31,767,892 38%

GST ₹ 11,356,971 ₹ 3,368,427 ₹ 7,988,544

Sub-total - in- ₹ 94,521,789 ₹ 54,765,352 ₹ 39,756,437
cluding GST

Indirect Cost ₹ 6,374,549 ₹ 3,466,209 ₹ 2,908,341
charged by
IFMR ₹ 100,896,338 ₹ 58,231,561 ₹ 42,664,777 42%
Total

CDFI - Quarterly Progress Report | July 2018 - September 2018 48

DELHI BENGALURU

5th Floor, B 35, Kiwani’s Bhawan, No. 135/5, 2nd Floor,
Qutab Institutional Area, 15th Cross J P Nagar, 3rd Phase
New Delhi - 110016
+91-11-41660681 Bengaluru - 560 078
+91-80-26596222

www.cdfi.in • [email protected]

@indiaCDFI CDFI @dev.cdfi CDFI/IFMR