Rural India banking all set to benefit from RFID

Filed in archive Implementation on October 8, 2007

India which is one of the hottest destinations currently since its growing like anything and with number of developed countries looking forward to benefit from it the country is getting to taste RFID technology in a subtle manner and this time not its urban cities but its rural region stand to gain from it. NXP Semiconductors has partnered with seven banks in four states in India to offer its RFID based mobile payment solution in more than four hundred and fifty villages in these states. The RFID based cell phone will be working with ZERO which is a micro banking platform from A Little World. More than forty five thousand rural populations will benefit from it and avail services such as deposits and withdrawals, micro insurance and cashless payments without visiting the bank branches.




Under this pilot the RFID card being used is similar to the one in e-Passports being used in more than thirty five countries and villagers will be able to conduct banking on their doorsteps since the complete database of customers along with those of nearby areas would be stored in the phone itself with due emphasis given on the security aspect. The smart card in the phone will biometrically store identity details of the customers coupled with details of their bank account.

Banking density is quite low in India and as per Reserve Bank of India around forty percent of Indians don't have any access to formal financial services therefore it would surely benefit these very people. With telecom revolution already taking place in the country and mobile phone density increasing like never before a number of people will be able to benefit from RFID. Looks like this technology will play an important role in further development of the country.