Every year, millions of people around the world transition out of poverty in a number of ways through access to better opportunities or fall back into poverty due to health, financial and other setbacks. Compounding this situation is the fact that the majority of those living in or near poverty lack even the most basic financial services. Access to the right financial tools at critical moments can determine whether a poor household is able to capture an opportunity to move out of poverty or absorb a shock without being pushed deeper into debt.
However, the existing “bricks and mortar” banking system doesn’t work for poor people, in part because most of their transactions are conducted in cash.
The global revolution in mobile technology along with rapid advances in digital payment systems, is creating opportunities to connect poor households to affordable and reliable financial tools through mobile phones, and other digital interfaces. Where the Axis Bank and DEF are playing a vital role through a new and unique initiative called DigiPrayas, which creates wonder all over in rural region.
DigiPrayas is luring not only farmers, local business men and rural youths of 36 villages of 5 states of rural India, but also the elected local body representatives (panchayat members).
The Axis Bank-DEF initiative DigiPrayas has a strong policy, advocacy and coordination component, aiming at enhancing regulatory environment to facilitate financial inclusion across all sectors of rural India. The project aims to provide digital financial literacy to 12 different villages in 5 different States in India — Punjab, Maharashtra, Haryana, Gujarat and Andhra Pradesh — to help them seek modern forms of banking through the digital medium, by first familiarising them with the digital interface, and then helping them access digital banking. The goal is to reach out to 5000+ individuals; and train them in using Internet banking, mobile banking via applications, and plastic money like debit/credit cards