The government's vision to take banking to every unbanked blocks of the country would lead to a surge in biometric accounts which will help illiterate people to access banking services.
Biometric accounts are designed especially for the illiterate people who can operate their account using the thumb impression.
Since such accounts will be operated through thumb impression of the account holder or the survivor or the legal heir as the case may be account operation will become easy.
This will enable the government to directly credit the benefits of social security schemes in these accounts, CNI Research said in a report.
Also, at the same time such account holders will have easy access to bank loans at nominal rates, it added.
Finance minister Pranab Mukherjee in his Budget speech 2009-10 said, a sub-committee of State Level Bankers Committee will identify such areas and formulate an action plan for providing banking facilities to all these areas in the next three years.
"Despite the expansion of banking network in the country, there are still some areas that remain under-banked or unbanked," he had said.
"I propose to set aside Rs 100 crore (Rs 1 billion) during the current year as one-time grant-in-aid to ensure provision of at least one centre/Point of Sales for banking services in each of the unbanked blocks in the country," Mukherjee had said.
According to a CNI Research, only 6 per cent Indians have bank accounts against 17 per cent in China and 99 per cent in the US.
"This (accessibility to banking services) is directly linked with the level of education and as it requires account holders to trust the bank, need to sign and hold vital documents such as cheque books under their own control," said CNI Reserach managing director Kishor Ostwal.
Mumbai-based FINO dealing with the manufacturing of biometric smart card in association with some banks in Andhra Pradesh is paying the money to beneficiary of government social security scheme using this technology.
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