International Initiative for Impact Evaluation (3ie) will conduct an independent study to evaluate the efficiency of the business correspondent (BC) model in delivering electronic benefit transfer services in India.
The study will evaluate FINO PayTech’s doorstep delivery model of BCs in Chhattisgarh.
Given the scale of the task,the 3ie study will undertake a thorough tour of Chhattisgarh where electronic benefit transfer (EBT) through BC model is underway. The study is expected to take 12 months to complete and will focus mainly on two things. First,it will evaluate whether EBT is more effective than physical or other available modes of payments. Second,it will look at the impact on costs and operational efficiency on transitioning to an EBT system.
According to a RBI report,an estimated Rs 300,000 crore was disbursed in 2011-12 by the Central and some state governments under various welfare schemes. McKinsey & Co in its 2010 report titled ‘Inclusive Growth & Financial SecurityThe benefits of e-payments to Indian society’,had mentioned that through electronic payments,the government could save about Rs 1,00,000 crore a year.
Elaborating on the importance of the study,Shweta Aprameya,vice president,FINO PayTech Limited,said,EBT through BC model has been operational since 2007,however there is not much research data available to draw conclusions on its effectiveness showcasing its impact.
The findings of this study,with testimonials of beneficiaries,project officials,analysis and insights by industry experts,will be shared with industry stakeholders not only in India but across the globe.
3ie supports impact evaluation studies in over 40 developing countries and promotes the use of rigorous evidence from impact evaluations in decision making. FINO PayTech operates in Chhattisgarh disbursing MGNREGA payments to beneficiaries through the EBT mode in 10 districts in addition to providing basic banking services to over 25 lakh customers.