The government of India plans to disperse rural pensions through centers equipped with NFC based cell phones until the end of 2008, according to report from Eppn.com. Fourteen banks are using the system in 42 districts in 17 states in India.
Banks issue smart cards to pension recipients with biometric information in order to ensure that the person operating the account is the same person who opens the account. The cellular phone then functions as the bank’s computer in the village, and processes all of the bank’s transactions. The government gives 2 percent of the amounts being transferred as commission to the banks, while the bank shares this technology with its business correspondents.
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