An electronic passbook adapted to Indian conditions has been introduced as part of the "anywhere banking" programme in Dena Bank and some premium savings bank scheme of the postal department.
Speaking at the conference on "Electronics commerce, electronic banking and Internet" which concluded here yesterday, Anita Mukherjee said the passbook developed by Elcom Fiscal Services, Calcutta, would provide several benefits including easy accessibility to money, portability, and convenience for the issuer.
The system provided low cost, security and easy adaptation to the existing operations, Mukherjee said, adding that Elcom validated the existing system through two real-life systems which were operating in the country.
Bank customers who wished to use this system had to open an account at any participating branch (the introducing bank) in the usual manner, she said, depositing a non-refundable fee for the card and the minimum balance in force for the account.
There could be four different types of accounts, each of which could have different minimum balance and limit on the daily transaction amount. "In addition, any one of 16 different interest rate slabs could be selected for a particular account."
Mukherjee said although the system had been installed in 10 branches of Dena Bank in greater Mumbai and 15 post offices spread all over new Delhi, after the expansion of the system to the national level, an account holder would be able to walk into any participating branch and carry out the same transactions.
"The system is designed to be expandable to even 1000's of branches without any difficulty," she said.
In order to safeguard the balance stored in the card from unauthorised access, a personal identification number, even weight digits long, could be changed at any time by the account holder.
Mukherjee said the system allowed cheques to be deposited into the smart card, by presenting the cheque with the card at the counter. After the cheque had been cleared, the credit was kept pending at the same counter and when the smart card was inserted for any other transaction, it was automatically credited.
"This system will help revolutionise personal banking in the country by providing the foundation of a plastic money system". With the easy availability of terminals where cash could be deposited or withdrawn, it would no longer be necessary to withdraw large sums in advance for the whole month, she observed.