Background Documents on csc scheme

Common Services Centers
Enabling Service Delivery: Bridging the Digital Gap
July 2011
Government of India
Department of Information Technology
Ministry of Communications & Information Technology
Government of India
BACKGROUND
Government of India had launched the Common Service Centre (CSC) Project for providing sustainable digital access
to rural communities and for giving the necessary impetus for upliftment of the rural community. The project is a
strategic cornerstone of the National e-Governance Plan (NeGP), approved by the Government in May 2006, as part
of its commitment in the National Common Minimum Programme to introduce e-governance on a massive scale.
The objective is to develop a platform that can enable Government, private and social sector organizations to align
their social and commercial goals for the benefit of the rural population in the remotest corners of the country.
The CSC Scheme is being implemented in a public private partnership (PPP) framework with a focus on rural
entrepreneurship & market mechanisms. The CSCs has been set up by private entities called as Service Centre
Agencies (SCA), who are appointed by the State Governments. The CSCs are run by the Village Level Entrepreneurs
(VLEs) who are appointed by the SCAs to run and manage the CSCs at pre-defined locations.
As on 30th June 2011, 95710 Common Services Centers have been set up across the country, covering 31 States/UTs
out of the targeted 100,000 centers to be set up - one per every six villages. The CSCs are being set up in the Public
Private Partnership (PPP) mode.
As envisaged under the Scheme, a National level Special Purpose Vehicle SPV has been formed as a permanent
entity to provide ongoing support to the CSCs and to catalyse services to be channelized through the network. The
name of the CSC SPV is CSC e-Governance Services India Ltd.
It is also now proposed to reposition CSCs as a network of Bharat Nirman CSCs to be set up in each Gram Panchayat as
a delivery point of public services for rural areas. Accordingly, additional 150,000 Bharat Nirman CSCs are proposed
to set up for the uncovered Panchayats.
Progress of the CSC Scheme
Over 95,710 Common Service Centres (CSCs) have already been rolled out in 31 States/UTs as on 30th June 2011. 100%
rollout has been completed in 12 States/ UTs and more than 70% has been achieved in 13 States/UTs. However, around
4,500 CSCs are non-functional due to termination of SCAs.
To ensure availability of connectivity to all CSCs, DIT is supporting BSNL to provide Wireline and WiMax based
broadband connectivity to all 100,000 CSCs. In total, connectivity has been provided to 69,574 CSCs as on 30th June
2011. 18,512 CSCs are connected through BSNL DSL; 419 and 185 are using BSNL EVDO and WiMax respectively. VSAT
Connectivity is being used by 24,297; Datacard by 10,163 and 15,998 are using connectivity through other technology
like WLL and GPRS of various service providers such as AirTel, Reliance and Tata Indicom etc. BSNL would provide
connectivity provision to all CSCs by December 2011. DIT in providing VSAT conectivity Rs. 2,500 difficult location in
NE states, Jammu & Kashmir, Uttrakhand & Himachal Pradesh.
GOVERNMENT TO CITIZEN (G2C) SERVICES
Government-to-citizen (G2C) services refer to online communication between Government and consumer/individuals.
It is an online interaction between local, central Government and private individuals which helps in making public
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services and information accessible to all. CSCs are brought in to increase the transparency in transactions at grassroots level. It has been seen that the transaction cost for services have also come down drastically and service delivery
through CSCs has given citizens easy access to many services such as online form filling, bill payments, municipal
certificates etc, or complex applications like distance education, e-learning, and tele‐medicine. G2C Services are
classified broadly into three types based on their operation processes as following G2C Services
Classification
Information
Services
Interactive
Services
Transactional
Services
As per the data collected from 23,010 CSCs across 19 States (Andhra Pradesh, Assam, Bihar, Chandigarh, Goa, Gujarat,
Himachal Pradesh, J&K, Jharkhand, Karnataka, Maharashtra, Orissa, Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttar
Pradesh, Uttarakhand & West Bengal) , following are the key findings Citizen Served
1.462 Crore (assuming avg. 5000 population/CSC; 1 citizen out of 10 has been served by
CSCs in above States)
Revenue Generated
Rs. 129.26 Crore
Most preferred services where maximum citizens covered:
Issuance of certificates [Record of Rights (RoR), Birth, Character, Death, etc.] with over 10 Million (+) services being
delivered till date throughout the country.
Service through which maximum revenue has been earned:
Issuance of Certificates (RoR, Birth, Character, Death, etc.) with over Rs. 90 crore revenue generated so far.
e-Enabled Service Delivery Strategy
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Following are the key G2C services delivered through CSCs –
Services
Description
Agriculture
Farmer /Labour / Agriculturist Certificate, Crop assistance Certificate, Farmer
Registration, Agricultural Family member Certificate, Appl. For incentive to
green fodder cultivation etc
Issuance of new / increase or decrease of Units, Addition or deletion of name
/ Renewal of ration card
Application for Inclusion / Correction/ Cancellation / Transposition of names
Ration Card
Electoral Roll
Poultry / Fisheries
Appl. Financial Assistance to Purchase cows/ buffaloes, Registration / renewal
of Fishing Nets, Application for Piggery/Poultry development Scheme ,
Application for Modern Dairy / Subsidy to purchase Milking machine Scheme
Caste / Minority
Application for issue of SC /ST/ OBC Caste Certificate, Appl. for scholarship
/ stipend to SC/OBC students, Appl. for Book Bank Scheme, Appl. for Kanya
Dhan for SC
Appl. for new / duplicate / renewal, Appl. for issue of Learner’s License
Driving License
Income Certificate
Data entry / Digital Print / MIS entry
Birth / Death Certificate
Other Certificates
Appl. for Issue of certificate, Non creamy layer certificate
NREGS MIS entries / Other digitization works, Muster Roll Entry of MGNREGA,
Cattle Census data digitization
Affidavits, Domicile Certificate, Bonafide, Widow, Solvency, Character,
disability / senior citizen card, Non Tenancy, No Govt. Job, Re-marriage,
Residence
Online filing of Public Grievances
Utility Bill payment
Electricity bill, Landline bill, Water bill
Application / Renewal of Arms License
Application for New or renewal of Hawker
Kerosene / Retail Foodstuff License
PAN Card
Sale of Stamps & Special adhesive
stamps / PDS forms
Taxes
Returns and Renewal of registration for Entertainment / Entry / Luxury/ Tax,
Payment of VAT / VATCST / CST, Filing of Returns for COT / CST / TDA
Pension / Incentives / Grants
Application for Financial Assistance under Prime Minister’s Employment
Generation / Incentives for Women Entrepreneurs, Grant-In-Aid Scheme
to provide Financial Assistance to the Mahila Mandals, Grants and financial
assistance to professional groups and institutions / cultural organizations, Indira
Gandhi National Old Age Pension, Handicapped Pension / Pension / Widow
Employment Exchange
Forest / Environmental
Issue of New card / registration, issue of duplicate / renewal of card
Fencing Registration, Appl. for intimation of Felled Trees, Appl. for ReliefNatural Calamity
Issuance of copy / Land holding / Land less certificate, Land Revenue Records,
Transfer/Mutation of land ownership
Land Records
Jail Video-conferencing
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Process (case study of e-mitra, Rajasthan) –
A comprehensive Web-based application has been developed for on-line monitoring of progress of implementation
of CSC Scheme up to VLE level. The transactions process for BSNL bill payment through CSC is explained below -
Bill Payment
Bill Payment
BSNL/ Service
providers
Service Center
Agency (SCA)
Service Charge
Village level
entrepreneur
(VLE)
Service Charge
For delivering G2C services, access to department portal or availability of online information (either on State portal
/ District portal) is needed. For this, initiatives like e-District will form a platform for CSCs to deliver G2C from
Government portal of a District.
Department
District
e-Governance
Society
LSP/SCA
Kiosk Holder
Consumer
Process Flow–
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Collects the
receipt
Goes to CSC/ eMitra Kiosk
Collects the Bill
Amount
Enter the bill
information on
e-Mitra portal
Generates the
Receipt
Generate the
Reports at the
end of day
Receives report
& amount from
VLEs
Reconcile &
compile the
Report
Deposits amount
in DeGS’s
account
Receives printed
reports & amount
by LSP/ SCA
Reconciliation
& compile the
Report
Transfer the
amount to BSNL
through RTGS or
online.
Reconciliation
& compile the
Report
Transfer the
amount to BSNL
through RTGS or
online.
BUSINESS TO CITIZEN (B2C) SERVICES
Business to Citizen (B2C) denotes online communication between business entities and consumers/individuals.
CSCs offering B2C services cater and cover large population base at the rural level. By integrating these services
into CSC bouquet, rural villagers get access to such services in their vicinity, for which they might have to travel to
nearby town and incur cost/face middlemen etc. This also resulted in income generating opportunities for VLEs
apart from G2C services.
As an assumption for CSC Scheme business model, G2C services could only form the 1/3rd of the total revenue (as
most are at nominal fee). Hence there is a dire need to offer B2C services at such level.
Service bouquet framework through CSCs –
Content and Services Providers
Village cluster
Corporate Business
B2C Services
B2B Services
Service Centre
Agency
Share revenues
Village Level
Entrepreneur
subscription b2c
services
Government Services
Village cluster
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Following are the key B2C services delivered through CSCs –
Services
Description
Financial Services
Banking – Business Facilitator and Business Correspondent Services
through CSCs (Opening of Bank Accounts, Sourcing Loan Applications,
Formation of SHG groups, Deposits and Disbursal of cash)
Key Bank tie-up : State Bank of India, HDFC Bank, CBI, J&K Bank, BOI
Currently more than 1225 CSCs are active as Banking
Insurance
Life and General Insurance Services through CSCs
Key insurance companies : Life Insurance Corporation of India, Birla
Sunlife Insurance, Max Newyork Life Insurance, National Insurance
Company Limited, HDFC ERGO General Insurance, TATA AIG
Education/ e-learning
Online / Offline Education Services through CSCs
Key tie-up:
IGNOU – Distance Education Courses
Microsoft – Customized e-learning courses
TCS – CD based Adult literacy courses
ETS – IT Training, Spoken English and Internet courses
DOEACC–CCC Course
INTEL–Easy steps
Telecom
Sale / Recharge / Bill Collection services through CSCs
Key tie-up: BSNL, Idea Cellular, Reliance, Airtel
Travel
Train / Bus / Air ticket bookings through CSCs
Key tie-up : IRCTC, Red Bus
Service Aggregators
Utility Services / Mobile Recharges / Entertainment Services through CSCs
Key tie-up: Suvidhaa Infoserve, Pay world, Oxigen
Astrology & Matrimonial Services
Astrology and Matrimonial Services through CSCs
Key tie-up: Astrovision, Bharat Matrimony
Entertainment Services
Sale and recharge of Dish TV connections
Key tie-up : TATA Sky, Reliance DTH
Research and
Data Collection
Exploring opportunities to utilize CSC network for research and data
collection
Agriculture
Agri Information / Agri Input Sales / Agri Extension Services through CSCs
Key tie-up: Reuters Market Light, Agri Watch, PHI Seeds Limited
Media and Advertising
Exploring opportunities for brand promotion and market analysis of
various FMCG products
Key service provider: Group M
Department of Posts
Extending Postal Services / Rural Postal Insurance through the CSC
Network
Digital Photos / CD writing /Typing
Web surfing / Email/Chats
DTP / Printing and Photocopy
Games
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Process (case study of IRCTC) –
The lengthy queues for booking tickets is no more the default way of buying tickets. IRCTC (Indian Railway Catering
and Tourism Corporation Ltd) has played a huge role in transforming customer experience for buying a railway ticket.
Now, like department online payment gateway, a citizen can also visit to nearest CSC and purchase/book online for
railway ticket booking / cancellation with transactions amount handling to VLEs and VLEs in turn having a commission
based payment arrangement with SCA and IRCTC. Currently more than 45,110 CSCs are offering IRCTC services.
State /
department web
portal
IRCTC web
portal
Common
Service
Center (CSC)
Bill Payment
Acknowledgement
SCA online
transactional
portal
Payment
Gateway
Banks / FIs
/ Master /
VISA
Requirement with VLEs for IRCTC service delivery:
i. Valid e-mail ID
ii. Bank Account (with ATM cum Debit Card or Internet Banking facility or Credit Card)
iii. Internet enabled Personal Computer (PC)
iv. Registration with www.irctc.co.in and valid User ID and Password
Financial Inclusion
Financial Inclusion is delivery of Banking services at an affordable cost to the vast sections of the disadvantaged
and low income groups. Reserve bank of India came out with a set of guidelines in January 2006 allowing the banks
to appoint Business correspondents (BC) and Business facilitators (BF) to expend their outreach in the rural areas.
Further, the RBI has allowed banks to engage with the CSC Operators/VLEs as BCs.
Benefits of using CSCs in FI:
Reach: Located in panchayats, CSCs are able to immediately serve the rural population
Accessibility: Being manned by local entrepreneurs and being a multi-purpose ICT centers without the formal bank
atmosphere, rural population can access CSCs conveniently
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Technology: CSCs are equipped with hardware (computer, printer, camera), power backup and internet and so
make it a cost effective BC outlet for banks
Centralized control: Monitored centrally by DIT/ SPV / SDAs and owned by SCAs, monitoring and controlling large
nos. of BC outlets becomes easy for banks
Government linkages: Being a centrally sponsored project being implemented by States, mandating CSCs as banking
service outlets becomes easy for Governments. This allows increased transactions at CSCs increasing financial
viability both for Banks and CSCs
Payment of remuneration to BCs / Kiosk Banking operator –
Services
Description
For opening new Accounts
@ Rs. 20/- per account
For issuance of ID cards
@ Rs. 10/- per ID card per Account
For withdrawal transactions
@ Rs. 0.50% ( minimum Rs. 1/- & maximum Rs. 12/- ) of the transaction amount
Term deposits/spl. Term deposits
@ Rs. 0.50% of the deposit amount
An amount equivalent to 10% of the total remuneration shall be recovered at the time of payment of remuneration
to the BC / KO. Above rates are taken from AISCET.
Cash transactions framework:
Case study of AISECT (Service Center Agency) –
State Bank of India has joined hands with AISECT by appointing them as their BC and BF for the state of Madhya
Pradesh & Chhattisgarh. AISECT has installed Rural Banking Kiosks at 382 places in both these states. In the first
phase only such of the places were selected for setting up Banking Kiosk which has AISECT CSC centre. Now with
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the greater emphasis given by Govt. of India for achieving 100% financial Inclusion within a specified time frame,
even the villages having a population of 2000 are being selected for setting up Banking Kiosk. AISECT has also
selected 205 Channel Partners and appointed them as BF. AISECT has been able to do a business of approx. ` 36.72
crore under BC and BF model within a very short period and expect to double the turnover very shortly.
Case study of Jharkhand–
State’s Nodal Agency for CSC Project (JAP-IT) and the RDD of Jharkhand made it mandatory for banks to have a
presence in each Panchayat. The Government of Jharkhand and RBI met on the 3rd December 2010 and banks were
directed to express interest on a block basis so that all 259 blocks of the State could be assigned to banks. As a
result, the CSCs have become an integral component of the State’s banking network. Further, to facilitate better
accessibility, all CSCs were directed to relocate to Panchayat Bhawans. District Collectors were also directed to
ensure that Banks use the CSCs for disbursal of Government benefits and wages (including NREGS wages).
Financial inclusion through CSCs –
States / UTs
Banks
CSCs Active
SCA
Madhya Pradesh
SBI & CBI
584
AISECT, NICT, Reliance
Jharkhand
SBI & BoI
250
UTL, AID
Chhattisgarh
SBI
59
AISECT
J&K
J &K Bank
400
J&K Bank
Bihar
SBI
Orissa
CBI
Tamil Nadu
CBI
Uttar Pradesh
CBI
90
SREI
Assam
CBI
32
SREI
West Bengal
CBI
Total
SARK
210
SREI
SREI
SREI
1625
Status as on 30th June, 2011
Way Ahead –
There are other opportunities like Skill Development and e-learning, Telemedicine, Outreach & Awareness
programmes through the CSCs. The need is to explore the newest and innovative ideas through which CSCs could
become one stop destination for every citizen.
Useful Resources –
http://www.csc-india.org
http://india.gov.in/sectors/communication/e-governance.php
http://www.mit.gov.in/content/common-services-centers
http://www.nisg.org
www.cscmis.emitra.gov.in
www.rural.nic.in/Instruction%20Manual%20for%20CSCs.pdf
http://indg.in/e-governance/cscscheme/common-service-centres-scheme/view?set_language=en
http://www.egovonline.net/default.aspx
http://jeevandelhi.gov.in/portalweb/g2cservicecharges.pdf
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CSCs at a glance
10
S.No.
State
CSC logo / boards
SCA
1
Andhra Pradesh
CMS Computers Ltd, Sreeven, Times, AP Online
2
Arunachal Pradesh
Tera Software/ Calance
3
Assam
SREI Sahaj, Zoom Developers
4
Bihar
SREI Sahaj, SARK Systems
5
Chandigarh
eSampark
6
Chhattisgarh
AISECT, Zoom Developers
7
Delhi
3i Infotech
8
Goa
3i Infotech
9
Gujarat
e gram/SDA
10
Haryana
SCA selection under process
11
Himachal Pradesh
Zoom Developers, GNG/Tera Software
12
Jammu & Kashmir
J&K Bank
13
Jharkhand
UTL , AID, Zoom Developers
14
Karnataka
Comat Technologies
15
Kerala
Akshaya Society
11
S.No.
12
State
CSC logo / boards
SCA
16
Madhya
Pradesh
AISECT, CMS Computers Ltd, NICT, Reliance
Communications
17
Maharashtra
SPANCO Ltd, BASIX, CMS Computers Ltd,
Reliance Communications
18
Manipur
Zoom developers
19
Meghalaya
BASIX
20
Mizoram
Zoom Developers
21
Nagaland
Tera Software
22
Orissa
Zoom Developers, SREI Sahaj, BASIX
23
Puducherry
Tera Software
24
Punjab
AISECT, BASIX, Calance/Vakrangee
25
Rajasthan
CMS Computers Ltd
26
Sikkim
IL&FS Ltd.
27
Tamil Nadu
SREI Sahaj, 3i Infotech Ltd.
28
Tripura
BASIX
29
Uttar Pradesh
CMS Computers Ltd, SREI Sahaj, Vayam Tech,
kvani Kendra
30
Uttarakhand
Reliance Communications
31
West Bengal
SREI Sahaj
Progress So Far (As on 30th June 2011)
Jammu
Kashmir
J&K
Chandigarh
CSC rolled out - 95,710
HP
Himachal
Pradesh
Punjab
Punjab
Delhi
Arunachal Pradesh
Uttarakhand
Uttaranchal
Sikkim
Haryana
Haryana
Rajasthan
Uttar Pradesh
ASM
UP
BiH
Gujarat
Gujarat
JHD
MP
MNP
MGH
Bihar
WB
TRIPURA
West Bengal
NGL
MZR
Chatsgarh
CHH
Daman and Diu
Orissa
Orissa
Maharashtra
Maharashtra
Dadra & Nagar Haveli
100% (12)
G oa
Andhra
Pradesh
Andaman & Nicobar
Islands
AP
Karnataka
Karnataka
Puducherry
Kerala
Lakshadweep
Kerala
Tamil
Nadu
TN
70%-100% (13)
50% - 70% (4)
10% - 50% (2)
10% (1)
SCA Selected (1)
Under Discussion (2)
*Due to termination of SCAs in Andhra Pradesh, Haryana, Maharashtra, Tamil Nadu, and Uttarakhand around 4537 CSCs are reported to be non
operational
CSC e-GOVERNANCE SERVICES INDIA LIMITED
3rd Floor, Electronics Niketan, Department of Information Technology,
6, CGO Complex, Lodhi Road, New Delhi-110003
www.mit.gov.in, http://csc-india.org
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