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<ul class="summary-list"><li>The Internal Revenue Service has paid out about half of all stimulus checks so far, the majority of which were delivered by direct deposit.</li><li>But more than 14 million American adults do not have a bank account.</li><li>Disproportionately poor, black, and Hispanic, "unbanked" Americans are still waiting for paper checks. </li><li>When they receive them, they could be charged up to 10% of a check's total value at a check-cashing store.</li><li><a href="https://www.businessinsider.com/?hprecirc-bullet">Visit Business Insider's homepage for more stories</a>.</li></ul>A historic $2 trillion government bailout has given cash to millions of working Americans and delivered payments to businesses large and small.But though the Coronavirus Aid, Relief, and Economic Security (CARES) Act has distributed money to millions of bank accounts, there are still 14 million Americans who don't have one."I live check to check, and right now I need more groceries," Akeil Smith, a 35-year-old health aide worker without a bank account, <a href="https://apnews.com/f18671b03d07a6b227b46e614e541e7d">told the Associated Press</a> outside a check-cashing store in Brooklyn."Unbanked" Americans are disproportionately poor, black, and Hispanic, <a href="https://www.fdic.gov/householdsurvey/2017/2017report.pdf">according to a 2017 survey</a> from the Federal Deposit Insurance Corporation (FDIC).According to the FDIC, <keyword id="9171747" type="UNKNOWN" weightage="60" keywordseo="unbanked-americans">unbanked Americans</keyword> make up 6.5% of the country's households. Around 14.1 million adults are unbanked."Unbanked and underbanked rates were higher among lower-income households, less-educated households, younger households, black and Hispanic households, working-age disabled households, and households with volatile income," the FDIC reported in 2017, the last time it conducted such a survey.Nearly 17% of black households were unbanked that year, as were 14% of Hispanic households and more than 20% of those making under $15,000 per year.The Internal Revenue Service has meted out around half of the government's stimulus cash for workers. Individuals who made under $75,000 in 2019 will receive a $1,200 check, and married couples making under $150,000 will get $2,400. The IRS will also pay $500 per additional child.Around half of all stimulus payments have been sent out, <a href="https://www.marketwatch.com/story/14-million-americans-risk-major-delays-in-their-stimulus-checks-delayed-should-they-use-square-paypal-or-a-bank-account-2020-04-27">primarily by direct deposit</a>. The IRS created an <a href="https://www.irs.gov/coronavirus/get-my-payment">online portal</a> to facilitate the depositing process, but the system offers nothing to people without savings or checking accounts, <a href="https://apnews.com/f18671b03d07a6b227b46e614e541e7d">according to the Associated Press</a>.People without bank accounts <a href="https://www.marketwatch.com/story/14-million-americans-risk-major-delays-in-their-stimulus-checks-delayed-should-they-use-square-paypal-or-a-bank-account-2020-04-27">will have to wait weeks, or even months,</a> while the IRS prints and mails them a paper check. The IRS will issue about 5 million paper checks per week, according to a House Ways and Means memo <a href="https://apnews.com/f18671b03d07a6b227b46e614e541e7d">seen by the Associated Press</a>.Of all unbanked Americans, more than 29% said they don't have a bank account because the "fees are too high," and nearly 25% said the fees were "too unpredictable," according to the FDIC. When unbanked Americans do receive their paper checks, they won't be able to access the money until they pay a fee for it at a check-cashing store. "They charge you an arm and a leg," Ta'Mar Bethune, 41, told the Associated Press. Check-cashers typically charge <a href="https://www.nerdwallet.com/blog/banking/unbanked-consumer-study/">between 1% and 10%</a> of the check's value. "You never get your full money," Bethune said. "It's bad, but I have no other choice."Read the original article on <a href="https://www.businessinsider.com/coronavirus-stimulus-check-payment-no-bank-account-waiting-2020-5">Business Insider</a>

14 million American adults don't have a bank account. They're still waiting for a stimulus payment.

<ul><li>A report by <keyword id="4053635" type="ORGANIZATION" weightage="20" keywordseo="Transunion-Cibil">TransUnion CIBIL</keyword> found that out of 220 million people in India that are eligible for loans, only 72 million have active bank accounts. </li><li>This is a significant opportunity for banks to expand their retail lending.</li></ul>India has been lauded for its progress on <keyword id="107911" type="ORGANIZATION" weightage="20" keywordseo="Financial-inclusion">financial inclusion</keyword> in recent years. The <a href="https://globalfindex.worldbank.org/">World Bank</a> found that India’s flagship government schemes such as the Jan Dhan Yojana, under which nearly <a href="https://economictimes.indiatimes.com/industry/banking/finance/banking/deposits-in-jan-dhan-accounts-cross-rs-80000-crore/articleshow/63865987.cms">315 million</a> accounts have been opened, increased formal financial coverage from 53% of the population in 2014 to 80% in 2017. Even CRISIL, a homegrown analytics firm, said that India’s overall score on its <a href="https://www.livemint.com/Opinion/EYDsPA60qlvujdln9SJcdN/India-is-doing-well-on-financial-inclusion.html">district-wise financial inclusion index</a> has increased as a result of government efforts. However, the surge in account openings is not translating into <keyword id="6354680" type="UNKNOWN" weightage="20" keywordseo="credit">credit</keyword> penetration. A report by TransUnion CIBIL, a credit information agency, highlights that a lot more work needs to be done in expanding access to formal credit. The report found that out of 220 million people in India that are eligible for a loan -- based on the fact that they are between the age of 20 and 69 and earn at least ₹250,000 a year -- only 72 million, or 33%, had an active account at a bank or lending institution. A market opportunity Rather than bemoaning the lack of access to formal credit as a problem, however, TransUnion CIBIL says this represents a significant opportunity for banks to tap into. Following the massive pileup in non-performing loans, banks are becoming wary of lending to companies. They have relied on retail lending, that is loans given to individuals for housing, cars or investment purposes, to drive credit growth. Last month, Standard Chartered outlined plans to increase it share of retail loans in India <a href="https://economictimes.indiatimes.com/industry/banking/finance/banking/standard-chartered-to-grow-retail-lending/articleshow/63891090.cms">to 40%</a> from the current 29%. This untapped market is expected to sustain a rise in credit growth for the next five years. And the population of credit-worthy borrowers is only set to grow bigger as incomes rise and young Indians come of age, reaching 295 million in another five years. The expansion in access to credit can be facilitated through the uptake of online banking, which will require credit cards, and peer-to-peer lending through smartphones. What the government needs to do Account openings aren’t the sole determinant of financial inclusion. Financial literacy programmes are vital in enabling account holders to make proper use of their banking facilities and overcome their resistance to using phones for banking purposes. The government also needs to encourage the establishment of credit bureaus to underwrite individual loans - something that can be achieved by the continued linking of bank transaction information with Aadhar details. Additionally, it is precisely because of lack of access to formal credit that India’s household debt, as a proportion of GDP, is still very low compared to countries like China and the US. According to a <a href="http://www.imf.org/en/Publications/WP/Issues/2018/05/14/Global-Debt-Database-Methodology-and-Sources-45838">working paper by the IMF</a>, India’s household debt is a little less than 10% of the GDP compared to 150% in the US and 44% in China. As banks expand access to credit, the government will have to keep a watch on this statistic.

Just 33% of the Indians that are eligible for a loan have access to a bank account

<keyword id="6354731" type="CITY" weightage="100" keywordseo="State-Bank-Of-India">State Bank of India</keyword> (<keyword id="13222" type="CITY" weightage="100" keywordseo="SBI">SBI</keyword>), which is India’s largest bank, is aiming to tap a majority of <keyword id="3505505" type="UNKNOWN" weightage="100" keywordseo="unbanked-rural-India">unbanked rural India</keyword> for its business correspondent model. The move has come at a time when the Indian government is laying stress on financial inclusion and the country is waiting for payments banks to start operations by yearend. 
 
Also read: <a href="http://www.businessinsider.in/SBI-Chairman-blames-stalled-projects-for-Indian-banking-sector-stress/articleshow/53080413.cms">Stalled projects from 2011 to 13 have put Indian banking sector into stress, says SBI Chairman</a> 
 
As per <a href="http://economictimes.indiatimes.com/industry/banking/finance/banking/sbi-plans-fresh-outreach-to-unbanked-rural-india/articleshow/53310349.cms">ET </a>reports, SBI has asked its business correspondents to take their customer service points to remote parts of rural India, so that more and more people can be brought to the bank. 
 
"Business correspondents are an important channel for us for financial inclusion. Whatever we have done through PMJDY (Pradhan Mantri Jan-Dhan Yojana) would not have been possible without a CSP (customer service points) channel. We are putting in all efforts to make this channel stronger and give them all forms of supports that they require," said Rajnish Kumar, MD, National Banking Group at <a href="http://www.businessinsider.in/SBI-defends-funding-cluster-bomb-maker/articleshow/52880559.cms">State Bank of India</a>. 
 
Also read: <a href="http://www.businessinsider.in/Govt-infuses-Rs-22915-crore-in-public-sector-banks/articleshow/53282345.cms">Govt infuses Rs 22,915 crore capital in public sector banks</a> 
 
In isolated areas where even the traditional branch-based banking is not available feasible, the state-run <a href="http://www.businessinsider.in/SBI-vs-Vijay-Mallya/articleshow/53046523.cms">lender </a>has tied up with Indian Oil Corporation so that its Kisan Seva Kendras can be converted into business correspondent outlets. 
 
Also read: <a href="http://www.businessinsider.in/bank-employees-strike-on-29th-July/articleshow/53192346.cms">10 Lakh bank employees to go on strike on 29th July, protesting against unfriendly reforms</a> 
 
Operating these business correspondent centres in remote areas has become all the way easier after Aadhaar integration, using which customer identity can be easily and efficiently determined. 
 
<a href="http://csc.amtron.in/csc-photo/uidai1.jpg">Image source</a>

Unbanked rural India is next on the SBI radar

Do you have a little extra cash that you want to spend for a good <keyword id="22752" type="PERSON" weightage="100" keywordseo="cause">cause</keyword>? Have you always wanted to help a cause but didn’t know where to put your money? Or do you own a company that focuses on corporate social responsibility and wants to make sustainable <keyword id="6362476" type="ORGANIZATION" weightage="100" keywordseo="investments">investments</keyword>? One way of doing it is to donate the money, but there’s a small snag. The money you spend is gone for good – it can’t be used multiple times to help more people. But how about helping people as many times as you want, using the same capital you have spent in the beginning? And getting the entire amount back in monthly repayments? Call it sustainable giving or crowd lending, this kind of financial model enables you to do all these and one <keyword id="6404679" type="UNKNOWN" weightage="100" keywordseo="start-up">start-up</keyword> is leveraging it to enhance life at the <keyword id="140518" type="UNKNOWN" weightage="100" keywordseo="bottom-of-the-pyramid">bottom of the pyramid</keyword>. 
 Welcome to <keyword id="2108864" type="UNKNOWN" weightage="100" keywordseo="Milaap-Social-Ventures">Milaap Social Ventures</keyword>, a social enterprise operating from Bangalore and <keyword id="6356662" type="COUNTRY" weightage="100" keywordseo="Singapore">Singapore</keyword>, which has developed an online crowd-funding platform to help the unbanked and the <keyword id="2108896" type="UNKNOWN" weightage="100" keywordseo="Underprivileged-masses">underprivileged masses</keyword> in <keyword id="3658" type="COUNTRY" weightage="100" keywordseo="India">India</keyword>. Simply put, <keyword id="6734688" type="UNKNOWN" weightage="100" keywordseo="Milaap">Milaap</keyword> (it means ‘connecting together’ in Hindi) offers an RBI-approved micro-lending platform that allows the organisation to receive ‘loans’ from all over the world. Although <keyword id="2108903" type="UNKNOWN" weightage="100" keywordseo="Individual-lenders">individual lenders</keyword> don’t get ‘financial returns’ on their investments (after all, you are putting in your money for a ‘good cause’), they get the principal back after the stipulated period. They can then re-deploy the money to help another person/project or cash out their principal. This helps create a <keyword id="2108904" type="UNKNOWN" weightage="100" keywordseo="Continuous-funding-cycle">continuous funding cycle</keyword>, more effective and sustainable than one-time donations. Want to know more about how Milaap is connecting the haves and the have-nots in a bid to help implement life-enhancing projects? Here is a snapshot that captures the start-up’s vision and viability. 
 
Who runs Milaap (milaap.org): A team of three co-founders – <keyword id="1270675" type="PERSON" weightage="100" keywordseo="Sourabh-Sharma">Sourabh Sharma</keyword> (<keyword id="5645" type="POSITION" weightage="100" keywordseo="CEO">CEO</keyword>), <keyword id="2108870" type="PERSON" weightage="100" keywordseo="Anoj-Viswanathan">Anoj Viswanathan</keyword> and <keyword id="2108865" type="UNKNOWN" weightage="100" keywordseo="Mayukh-Choudary">Mayukh Choudary</keyword>. Sourabh, a graduate from the <keyword id="87108" type="ORGANIZATION" weightage="60" keywordseo="National-University-of-Singapore">National University of Singapore</keyword>, started his first company, a mobile app start-up, straight out of college and ran it for more than two years. Next, he had a stint with corporate houses but soon joined hands with the other two co-founders to start Milaap. 
 Anoj holds a degree in Engineering from the National University of Singapore and he is also a StartingBloc Fellow (2010). Prior to co-founding Milaap, he had worked with SKS <keyword id="113684" type="COMPANY" weightage="100" keywordseo="microfinance">Microfinance</keyword> and focused on the energy and water services space. Earlier, he had been at <keyword id="2108863" type="UNKNOWN" weightage="60" keywordseo="ReEx-Capital-Asia">ReEx Capital Asia</keyword>, a cleantech investment boutique in Singapore, and served as a fellow at D.light Design. He is also a founder member of the <keyword id="2108877" type="UNKNOWN" weightage="60" keywordseo="Microfinance-Society-in-Singapore">Microfinance Society in Singapore</keyword> and leads the Milaap team in India. 
 Mayukh is an <keyword id="198748" type="POSITION" weightage="60" keywordseo="electrical-engineer">electrical engineer</keyword> from IIT Madras and holds a PGDM from IIM Lucknow. He specialises in building technology-enabled financing models and worked as a <keyword id="2108874" type="UNKNOWN" weightage="60" keywordseo="financial-risk-consultant-in-Dubai">financial risk consultant in Dubai</keyword> before starting up Milaap. 
 
What inspired the venture: A sabbatical that changed life. In 2008, Anoj took some time off to be with SKS Microfinance and worked on a project to provide solar lanterns on credit in a few tribal villages in <keyword id="6357961" type="CITY" weightage="100" keywordseo="Odisha">Odisha</keyword>. There he met Mayukh who was then working with the solar lantern-maker D.lightdesign. While on this project, Anoj noticed how <keyword id="6621346" type="UNKNOWN" weightage="100" keywordseo="Small-loans">small loans</keyword> impacted life in a big way, especially at the bottom of the pyramid, and the idea of Milaap came to his mind. Developing a crowd-funding platform to connect India’s underprivileged with prosperous individuals and <keyword id="2108906" type="UNKNOWN" weightage="100" keywordseo="Institutional-lenders">institutional lenders</keyword> across the globe seemed the right way to go about it. Anoj, who knew Sourabh from 2006 when he interned at his previous start-up Microappli, got him and Mayukh together to give shape to the idea of Milaap, which finally went live in June 2010. 
 
What’s the pitch: <keyword id="2108919" type="UNKNOWN" weightage="100" keywordseo="Lend-a-little">Lend a little</keyword>, <keyword id="2108920" type="UNKNOWN" weightage="100" keywordseo="change-a-lot">change a lot</keyword> – that’s Milaap’s motto and it has started happening. “India has a large pool of people who don’t have access to traditional banking, but they do require <keyword id="2108923" type="UNKNOWN" weightage="100" keywordseo="Funds-for-self-employment">funds for self-employment</keyword> and developmental initiatives. So we are leveraging the global reach of the <keyword id="6357247" type="PERSON" weightage="100" keywordseo="Internet">Internet</keyword> and trying to ensure that people – either individually or through their <keyword id="23045" type="UNKNOWN" weightage="100" keywordseo="social-networks">social networks</keyword> – can raise and lend capital to the millions who are unbanked and underprivileged,” says Sourabh. 
 Milaap is currently targeting over 700 million Indians who are mostly living in the rural &amp; semi-urban areas and unable to access formal sources of <keyword id="6357455" type="EVENT" weightage="100" keywordseo="Funding">funding</keyword>. According to the social enterprise, less than 5% of them are able to procure reasonably priced, life-improving loans for their small businesses, vocational training or other essential household assets, and that’s where the ‘loans’ raised by Milaap come in . 
 
How it works: At Milaap, the work is done in two stages. One part is <keyword id="2108932" type="UNKNOWN" weightage="100" keywordseo="Shortlisting-borrowers">shortlisting borrowers</keyword> and publishing their profiles/projects on Milaap.org for crowd funding. Second part is deployment of the loans, monitoring their usage and ensuring timely repayments. Understandably, the second part is more cumbersome and requires a lot of offline work. Milaap has already tied up with 20-plus carefully selected ‘field partners’ (chosen from a wide range of <keyword id="164768" type="UNKNOWN" weightage="100" keywordseo="Microfinance-institutions">microfinance institutions</keyword> or <keyword id="113682" type="ORGANIZATION" weightage="100" keywordseo="MFIs">MFIs</keyword>, <keyword id="1417942" type="UNKNOWN" weightage="100" keywordseo="Social-Businesses">social businesses</keyword>, <keyword id="2108940" type="UNKNOWN" weightage="100" keywordseo="Vocational-training-institutions">vocational training institutions</keyword>, etc.,) to identify the most deserving candidates/projects for loans. Once they are selected, each <keyword id="2108943" type="UNKNOWN" weightage="100" keywordseo="Borrowers-profile">borrower’s profile</keyword> is uploaded on the site, along with the fund raised till date and the amount still required for completing the loan. 
 Lending online is quite simple, though. Browse through the profiles to choose a borrower or select one from an impact area that you feel strongly about. You can also use various parameters such as cause, <keyword id="6379164" type="ORGANIZATION" weightage="100" keywordseo="LOCATION">location</keyword>, <keyword id="2108946" type="UNKNOWN" weightage="100" keywordseo="Project-urgency">project urgency</keyword>, <keyword id="2108948" type="UNKNOWN" weightage="100" keywordseo="Repayment-period">repayment period</keyword>, women-centric projects to fine-tune your <keyword id="2108951" type="UNKNOWN" weightage="100" keywordseo="Borrower-search">borrower search</keyword>. After the loan payment is made online, Milaap disburses the amount to the concerned <keyword id="2108956" type="UNKNOWN" weightage="100" keywordseo="Field-partner">field partner</keyword> and the end-borrower gets it from the field partner. When repayment is done (end-borrower – field partner – Milaap), ‘credits’ are accumulated in your Milaap account. When the loan is fully repaid, you can either withdraw the money or roll it into another project. As for diehard do-gooders, there are even more options to <keyword id="2108961" type="UNKNOWN" weightage="100" keywordseo="Start-fundraising">start fundraising</keyword> for the projects you prefer. 
 
Claim to fame: The concept and the build-up. According to the co-founders, crowd-funding is still a niche concept in the country but it is gaining traction gradually. Till date, Milaap has raised and disbursed over Rs 8.4 crore in 8,633 loans, impacting more than 46,393 people across 11 states in India. These loans are essentially raised to fulfil a wide range of <keyword id="2108963" type="UNKNOWN" weightage="100" keywordseo="Developmental-requirements">developmental requirements</keyword> including <keyword id="566897" type="ORGANIZATION" weightage="100" keywordseo="basic-education">basic education</keyword> &amp; vocational training, <keyword id="572926" type="COMPANY" weightage="100" keywordseo="seed-capital">seed capital</keyword> for small businesses, <keyword id="2109008" type="UNKNOWN" weightage="100" keywordseo="Access-to-clean-water">access to clean water</keyword> &amp; <keyword id="49770" type="UNKNOWN" weightage="100" keywordseo="Sanitation">sanitation</keyword>, and <keyword id="2109012" type="UNKNOWN" weightage="100" keywordseo="Safe-lighting">safe lighting</keyword>. Moreover, Milaap boasts 100% repayment of loans till now, indeed a rare feat when banks and big <keyword id="34503" type="COMPANY" weightage="100" keywordseo="financial-institutions">financial institutions</keyword> (<keyword id="4776620" type="CITY" weightage="100" keywordseo="FIs">FIs</keyword>) are suffering from the rise in bad loans. 
 The organisation is also focusing on <keyword id="2109025" type="UNKNOWN" weightage="100" keywordseo="Pan-India-expansion">pan-India expansion</keyword>. “Earlier, we were mostly operating in states like <keyword id="20154" type="ORGANIZATION" weightage="80" keywordseo="tamil-nadu">Tamil Nadu</keyword> and <keyword id="13126" type="COMPANY" weightage="100" keywordseo="Maharashtra">Maharashtra</keyword>. But now we are scaling up our operations and growing in states like Odisha, <keyword id="65591" type="CITY" weightage="100" keywordseo="Mizoram">Mizoram</keyword> and even Gujarat,” notes Sourabh. 
 
Show me the money: While a borrower gets the entire sum offered by the lender, Milaap charges its field partners a 5% fee on the loans disbursed through them, to cover its operating costs. Its field partners, in turn, charge affordable interest from the end-borrower to meet their operating costs. Milaap also makes sure that all fees are disclosed upfront. 
 
Unlike many other ventures in this space, this social enterprise is a for-profit concern, but has not reached break-even yet. However, it has found some solid backers and already raised $1.1 million in Series A venture funding in May 2013. The money raised is being utilised for developing the online platform further and scaling up operations. “We want the number of lenders to go up to 100,000 in the next 18 months. That is the tipping point from where we can gather momentum and look at break-even,” adds Sourabh. 
 The <keyword id="2026013" type="UNKNOWN" weightage="100" keywordseo="Series-A-round">Series A round</keyword> was led by Singapore-based <keyword id="969909" type="ORGANIZATION" weightage="80" keywordseo="Jungle-Ventures">Jungle Ventures</keyword>, an early-stage investment firm and an approved <keyword id="2109042" type="UNKNOWN" weightage="100" keywordseo="Technology-incubator">technology incubator</keyword> under the <keyword id="2109044" type="ORGANIZATION" weightage="100" keywordseo="Singapore-National-Research-Foundation">Singapore National Research Foundation</keyword>’s Technology Incubation Scheme. Other investors included <keyword id="2109045" type="UNKNOWN" weightage="100" keywordseo="Toivo-Annus">Toivo Annus</keyword> (<keyword id="170488" type="POSITION" weightage="100" keywordseo="co-founder">co-founder</keyword> of <keyword id="6377887" type="COMPANY" weightage="60" keywordseo="Skype">Skype</keyword>), <keyword id="2072941" type="UNKNOWN" weightage="100" keywordseo="LionRock-Capital">Lionrock Capital</keyword> (a Singapore-based <keyword id="2109046" type="UNKNOWN" weightage="100" keywordseo="Family-investment-office">family investment office</keyword>), <keyword id="2108869" type="PERSON" weightage="80" keywordseo="Jayesh-Parekh">Jayesh Parekh</keyword> (Co-Founder, Sony Entertainment Television) as well as existing investor, <keyword id="1509738" type="ORGANIZATION" weightage="80" keywordseo="Unitus-Seed-Fund">Unitus Seed Fund</keyword>. The company is looking to raise a Series B round worth $3-5 million in the second half of CY2014. 
 Earlier, between August 2010 and January 2012, Milaap raised $250,000 in seed investment from Unitus Seed Fund, <keyword id="211897" type="COMPANY" weightage="60" keywordseo="First-Light-Ventures">First Light Ventures</keyword>, <keyword id="198636" type="PERSON" weightage="80" keywordseo="Vijay-Shekhar-Sharma">Vijay Shekhar Sharma</keyword> (Founder, <keyword id="338385" type="COMPANY" weightage="60" keywordseo="One97">One97</keyword>) and <keyword id="2108867" type="UNKNOWN" weightage="80" keywordseo="Rajiv-Madhok">Rajiv Madhok</keyword> (Founder, <keyword id="312199" type="ENTERTAINMENT" weightage="60" keywordseo="Oorja">Oorja</keyword>). 
 Interestingly, only 40% of the total lending amount comes from individual lenders (mostly from India, Singapore, the US and <keyword id="6356687" type="COUNTRY" weightage="100" keywordseo="canada">Canada</keyword>) while 60% funding comes from institutional lenders, social funding and even family offices. But unlike <keyword id="2109229" type="UNKNOWN" weightage="100" keywordseo="Small-lenders">small lenders</keyword>, large institutional and <keyword id="2109230" type="UNKNOWN" weightage="100" keywordseo="HNI-lenders">HNI lenders</keyword> get 3-4% return on their loans. 
 
Biggest challenge: There is competition from a few sites like <keyword id="1658892" type="UNKNOWN" weightage="100" keywordseo="Kiva">Kiva</keyword> or Wishberry, but it is still a niche space and <keyword id="2109065" type="UNKNOWN" weightage="100" keywordseo="Discoverability">discoverability</keyword> is the main challenge now, feels Sourabh. “We need to do more marketing and promotion to let people know such a platform exists. That will help us get more lenders on board, more field partners and subsequently, help more and more people get life-changing access to capital,” he says. 
 
A word for wannapreneurs: Take the plunge and do it. ‘Now’ is always a good time to do it – so don’t hesitate. I always feel that the risk part is overrated in entrepreneurship. You actually need the experience before you can succeed. So start early and make sure that you get the kind of experience you need for long-term success. Your first initiative may not be all that great but at least, you would have learnt from all your mistakes. Try fast and fail fast before you can succeed.

This Social
Enterprise Runs A Global Crowd-funding Platform; Eyes $3-5
Million In Series B Funding

<a href="http://www.businessinsider.in/DoYou-Need-Aadhaar-Card-Govt-Says-Yes-Supreme-Court-Says-No/articleshow/22981267.cms">Controversy</a> is still raging over the mandatory use of <keyword id="144117" type="ORGANIZATION" weightage="100" keywordseo="AADHAAR">Aadhaar</keyword>, but an expert <keyword id="2006823" type="UNKNOWN" weightage="100" keywordseo="Committee-on-financial-inclusion">committee on financial inclusion</keyword> has already recommended that the <keyword id="6354335" type="CITY" weightage="100" keywordseo="reserve-bank-of-india">Reserve Bank of India</keyword> should leverage the <keyword id="2006820" type="UNKNOWN" weightage="100" keywordseo="Aadhaar-network">Aadhaar network</keyword> to ensure that every Indian has a <keyword id="2006817" type="UNKNOWN" weightage="100" keywordseo="Free-bank-account">free bank account</keyword> by January 2016. The recommendation has come from the Committee on Comprehensive <keyword id="2006821" type="UNKNOWN" weightage="100" keywordseo="Financial-Services-for-Small-Business">Financial Services for Small Business</keyword> and Low-Income Households, which is headed by <keyword id="311391" type="PERSON" weightage="100" keywordseo="Nachiket-Mor">Nachiket Mor</keyword>, an <keyword id="2006825" type="UNKNOWN" weightage="100" keywordseo="RBI-board-member">RBI board member</keyword> and former <keyword id="6653" type="CITY" weightage="100" keywordseo="ICICI-bank">ICICI Bank</keyword> executive. 
 <keyword id="30067" type="ORGANIZATION" weightage="100" keywordseo="RBI">RBI</keyword> set up the committee last September and it has now sought comments from the public on the <keyword id="1180163" type="UNKNOWN" weightage="100" keywordseo="draft-recommendations">draft recommendations</keyword> on or before January 24, 2014. Other key members of the panel include former <keyword id="44473" type="CITY" weightage="80" keywordseo="Citigroup">Citigroup</keyword> CEO <keyword id="25396" type="PERSON" weightage="100" keywordseo="Vikram-Pandit">Vikram Pandit</keyword> and <keyword id="2006826" type="UNKNOWN" weightage="100" keywordseo="Axis-Bank-CMD">Axis Bank CMD</keyword> <keyword id="6356453" type="PERSON" weightage="100" keywordseo="Shikha-Sharma">Shikha Sharma</keyword>. 
 According to the report, every Indian resident over 18 years of age should be automatically issued a “universal <keyword id="2006829" type="UNKNOWN" weightage="100" keywordseo="Electronic-bank-account">electronic bank account</keyword> at the time of receiving his/her <keyword id="485058" type="UNKNOWN" weightage="100" keywordseo="Aadhaar-number">Aadhaar number</keyword>.” One can choose his/her <keyword id="2006832" type="COMPANY" weightage="100" keywordseo="Preferred-bank">preferred bank</keyword> from the empanelled ones and need not pay any fee for opening an account. However, the bank can levy <keyword id="162862" type="UNKNOWN" weightage="100" keywordseo="transaction-charges">transaction charges</keyword>, the committee says. It also recommends setting up of a ‘unified’ redressal agency under the <keyword id="47209" type="ORGANIZATION" weightage="100" keywordseo="Finance-Ministry">finance ministry</keyword> to deal with <keyword id="786199" type="UNKNOWN" weightage="100" keywordseo="customer-complaints">customer complaints</keyword>. 
 About 90% of small businesses have no links to a <keyword id="154831" type="ORGANIZATION" weightage="100" keywordseo="financial-institution">financial institution</keyword> and 60% of Indians do not have bank accounts, the report states. “Aadhaar is the key piece of infrastructure to enable a customer to be identified and authenticated so that repudiation and fraud risks are minimised and therefore, should become the universal basis for authentication,” it adds. 
 The panel has also suggested that a special type of <keyword id="6368751" type="PERSON" weightage="100" keywordseo="Banks">banks</keyword> should be introduced to provide payment services and deposit products to small businesses and low-income households. Such banks could be categorised as <keyword id="2006841" type="UNKNOWN" weightage="100" keywordseo="Payments-banks">payments banks</keyword> and “they will be restricted to holding a <keyword id="2006842" type="UNKNOWN" weightage="100" keywordseo="Maximum-balance">maximum balance</keyword> of Rs 50,000 per customer,” the report says. Even <keyword id="2006844" type="UNKNOWN" weightage="100" keywordseo="Existing-lenders">existing lenders</keyword> can set up these payments banks as <keyword id="4128451" type="UNKNOWN" weightage="100" keywordseo="subsidiaries">subsidiaries</keyword>. The report also recommends setting up another category of wholesale banks that will provide funds to other banks and financial institutions that directly lend to low-income households. 
 On the face of it, the recommendations to introduce a multi-layered <keyword id="6354778" type="ORGANIZATION" weightage="100" keywordseo="Banking">banking</keyword> system make sound sense as these ‘proposed’ entities will be serving the <keyword id="2006855" type="UNKNOWN" weightage="100" keywordseo="Financially-weak">financially weak</keyword> segment of the country and overall, the inclusion plan for 2013-2016 looks good. 
 
Except for the Aadhaar part. 
 But before we go ahead, let us have a look at Aadhaar and what all it offers. Launched by the <keyword id="86474" type="ORGANIZATION" weightage="100" keywordseo="Unique-Identification-Authority-of-India">Unique Identification Authority of India</keyword> (<keyword id="6355252" type="CITY" weightage="100" keywordseo="UIDAI">UIDAI</keyword>), the <keyword id="804646" type="UNKNOWN" weightage="100" keywordseo="Aadhaar-scheme">Aadhaar scheme</keyword> was initially introduced to ‘promote inclusion and benefits of the <keyword id="1389586" type="UNKNOWN" weightage="100" keywordseo="marginalised-sections">marginalised sections</keyword> of the society that has no <keyword id="2006861" type="UNKNOWN" weightage="100" keywordseo="Formal-identity-proof">formal identity proof</keyword>.’ Even today, Aadhaar-enabled services are essentially linked to various <keyword id="580043" type="UNKNOWN" weightage="100" keywordseo="government-welfare-schemes">government welfare schemes</keyword> – so that its beneficiaries can access the same in a hassle-free manner. 
 However, the ‘<keyword id="2006816" type="UNKNOWN" weightage="100" keywordseo="Banking-for-all">banking for all</keyword>’ initiative in its ‘suggested’ format cannot be a marginalised movement, aimed to serve only the under-banked/unbanked regions or the weaker section or those below the <keyword id="141042" type="ORGANIZATION" weightage="100" keywordseo="poverty-line">poverty line</keyword>. It has to have a <keyword id="2006866" type="UNKNOWN" weightage="100" keywordseo="Unified-structure">unified structure</keyword> across the country – involving every Indian citizen. In other words, it will be much like the ‘<keyword id="49358" type="UNKNOWN" weightage="100" keywordseo="voter-card">voter card</keyword>’ mechanism we have in place right now. At the age of 18, an Indian is entitled to get a voter card irrespective of the <keyword id="2006868" type="UNKNOWN" weightage="100" keywordseo="Financial-divides">financial divides</keyword>. Going forward, if the central bank intends to follow the same principle and wants to bring the entire population of the country under its <keyword id="2006870" type="UNKNOWN" weightage="100" keywordseo="Inclusion-umbrella">inclusion umbrella</keyword> (after all, one cannot leave one section of the citizens out of a <keyword id="2006871" type="UNKNOWN" weightage="100" keywordseo="Mass-initiative">mass initiative</keyword> just because they are financially more stable), opening an account at the stipulated age should become mandatory and that means a mandatory <keyword id="1953676" type="UNKNOWN" weightage="100" keywordseo="Aadhaar-validation">Aadhaar validation</keyword>. 
 And that brings us back to the basic question – what is the legal status of Aadhaar in India? Is it just a <keyword id="107911" type="ORGANIZATION" weightage="100" keywordseo="Financial-inclusion">financial inclusion</keyword> tool for the economically weak or do the government agencies intend to turn it into an ‘all-inclusive’ tool required for every social and <keyword id="672932" type="ORGANIZATION" weightage="100" keywordseo="economic-activity">economic activity</keyword> – right from <keyword id="427269" type="UNKNOWN" weightage="100" keywordseo="Marriage-registration">marriage registration</keyword> to <keyword id="854003" type="UNKNOWN" weightage="100" keywordseo="land-registration">land registration</keyword>, from banking to <keyword id="6368952" type="ORGANIZATION" weightage="100" keywordseo="shopping">shopping</keyword> and more? 
 The RBI has already asked banks to ensure <keyword id="1953683" type="UNKNOWN" weightage="100" keywordseo="Aadhaar-authentication">Aadhaar authentication</keyword> for <a href="http://www.businessinsider.in/Now-RBI-Wants-Aadhaar-Validation-For-Card-based-Transactions/articleshow/26473660.cms">card transactions</a> at merchant locations. “All new card present infrastructure has to be enabled for both <keyword id="1953693" type="UNKNOWN" weightage="100" keywordseo="EMV-chip-and-PIN">EMV chip and PIN</keyword> and Aadhaar (<keyword id="1953679" type="UNKNOWN" weightage="100" keywordseo="Biometric-validation">biometric validation</keyword>) acceptance,” the central bank stated in a notification on November 26 last year. 
 Although the <keyword id="6354977" type="ORGANIZATION" weightage="80" keywordseo="Supreme-Court">Supreme Court</keyword> has ruled that the <keyword id="6356006" type="UNKNOWN" weightage="100" keywordseo="Aadhaar-card">Aadhaar Card</keyword> is not mandatory to get <keyword id="1739662" type="UNKNOWN" weightage="100" keywordseo="government-benefits">government benefits</keyword> and services, and the <keyword id="1878758" type="UNKNOWN" weightage="100" keywordseo="National-Identity-Authority-of-India-Bill">National Identity Authority of India Bill</keyword> is yet to get Parliamentary nod, Aadhaar seems to be enjoying a more hallowed status and getting its teeth deep into every key financial transaction one can think of. That might not be quite desirable at this stage as divulging <keyword id="441301" type="UNKNOWN" weightage="100" keywordseo="biometric-data">biometric data</keyword> (required for Aadhaar Card) is still considered voluntary and <keyword id="2006881" type="UNKNOWN" weightage="100" keywordseo="Secure-storage">secure storage</keyword> of the same cannot be guaranteed even now. 
 The rest of the recommendations by the committee dwell on the structure and requirements of the <keyword id="2006882" type="UNKNOWN" weightage="100" keywordseo="Proposed-banks">proposed banks</keyword>, <keyword id="6597293" type="UNKNOWN" weightage="100" keywordseo="priority-sector-lending">priority sector lending</keyword> and deposits, and classification of non-banking financial companies (NBFCs). 
 Interestingly, the payment banks will be required to meet the standard <keyword id="35038" type="ORGANIZATION" weightage="80" keywordseo="crr">CRR</keyword> terms and must also deposit the balance proceeds in approved <keyword id="838337" type="UNKNOWN" weightage="100" keywordseo="SLR-securities">SLR securities</keyword> with duration of no more than three months. As they won’t be permitted to assume any kind of <keyword id="854662" type="UNKNOWN" weightage="100" keywordseo="Credit-risk">credit risk</keyword>, which literally rules out any risk of default, the <keyword id="2006891" type="UNKNOWN" weightage="100" keywordseo="Minimum-entry-capital">minimum entry capital</keyword> for them will be Rs 50 crore instead of the Rs 500 crore required for full-service commercial banks in the country. Also, the wholesale banks cannot accept deposits bigger than Rs 5 crore from a single depositor. 
 The RBI had launched a three-year financial <keyword id="2006853" type="UNKNOWN" weightage="100" keywordseo="Inclusion-programme">inclusion programme</keyword> in April 2010, which prompted banks to open outlets in 200,000 villages. The current recommendations seek to deepen such access and experts even feel that the new banking licences, to be announced soon, can be categorised accordingly. But both the government and the RBI should ensure that the programme becomes ‘inclusive’ in the true sense of the term and validation issues should not throw a spanner in the works.

Aadhaar Gaining More
Teeth, To Play Key Role In ‘Banking For All’

<ul class="summary-list"><li>Los Angeles could join other cities and states in banning cashless businesses. </li><li>Some shops in LA have turned to credit or digital payments only, citing theft concerns. </li></ul>A Los Angeles city official wants to ban cashless businesses in the area, arguing they exclude low-income people and others who don't carry credit cards. "Cashless businesses create an economy in our City that is not inclusive and accessible for all people," Councilwoman Heather Hutt said in a <a href="https://councildistrict10.lacity.gov/sites/g/files/wph1986/files/2023-08/CD10%20Cashless%20Business_Press%20Release%20.docx%20%281%29.pdf" target="_blank" rel="noopener">press release</a> introducing a motion on the topic. "There are many unbanked groups, including BIPOC and low-income communities, that rely on cash to pay for goods and services." It comes as more businesses in the area are opting for cashless payments like credit cards or digital payments through apps. Those options, businesses say, make the purchasing process more efficient and safe, the <a href="https://www.msn.com/en-us/money/smallbusiness/la-might-ban-cashless-businesses-heres-whats-at-stake/ar-AA1fBYFP">Los Angeles Times</a> reported.For example, a salad bar chain beloved and advertised by the Kardashian family recently turned cashless at its multiple LA locations, citing a rise in theft in the city, the <a href="https://www.dailymail.co.uk/tvshowbiz/article-12421537/Kardashians-favorite-salad-chain-goes-cashless.html" target="_blank" rel="noopener">Daily Mail</a> reported. Hutt argues that such measures are discriminatory. Her motion calls for the City Attorney to draft an ordinance prohibiting cashless businesses. "As a City that has promised to be a safe and fair place for all, we must be proactive in ensuring that all our systems create fairness and equity for each and every individual," Hutt said in the press release.Los Angeles would not be the first jurisdiction to face such a call. Several major cities, such as New York and Philadelphia, have done the same, as have a handful of states, the Times reported. San Francisco enacted a cashless ban in 2019, something city officials doubled down on during the COVID-19 pandemic when some businesses tried to deny cash for health reasons. "This is about equity. Not everybody has a credit card or an ATM card, and people need essential services," San Francisco Police Department Chief Bill Scott said in May 2020, <a href="https://sf.eater.com/2020/5/12/21255983/san-francisco-sfpd-cash-coronavirus" target="_blank" rel="noopener">Eater SF</a> reported.

LA considers ban on cashless businesses because they exclude low-income people, people of color, and seniors

<ul><li>Former Twitter co-founder and CEO <keyword id="265395" type="General" weightage="80" keywordseo="jack-dorsey" source="Orion">Jack Dorsey</keyword> was left poorer by $526 million after short-seller Hindenburg report.</li><li><keyword id="778018" type="General" weightage="100" keywordseo="dorsey" source="Orion">Dorsey</keyword> is now worth $4.4 billion, according to <keyword id="29740" type="General" weightage="50" keywordseo="bloomberg" source="Orion">Bloomberg</keyword> Billionaires Index.</li></ul>San Francisco, Former Twitter co-founder and CEO Jack Dorsey was left poorer by $526 million after short-seller <keyword id="9916845" type="General" weightage="50" keywordseo="hindenburg-research" source="Orion">Hindenburg Research</keyword> revealed that his digital payment company Block facilitates fraud against consumers and the government. After his worst single-day decline, Dorsey is now worth $4.4 billion, according to Bloomberg Billionaires Index. Block's shares also nosedived as much as 22 per cent on Thursday, before closing down 15 per cent late on Thursday. Block, formerly known as Square, claims to have developed a "frictionless" and "magical" financial technology with a mission to empower the "unbanked" and the "underbanked". "Our 2-year investigation has concluded that Block has systematically taken advantage of the demographics it claims to be helping," said Hindenburg Research in its report, taking its latest short position on Block. "We also believe Jack Dorsey has built an empire -- and amassed a $5 billion personal fortune -- professing to care deeply about the demographics he is taking advantage of," it added. Block or Dorsey were yet to react to the Hindenburg report. According to the report, Block embraced one traditionally very "underbanked" segment of the population: criminals. "The company's 'Wild West' approach to compliance made it easy for bad actors to mass-create accounts for identity fraud and other scams, then extract stolen funds quickly," the report mentioned. In sum, "we think Block has misled investors on key metrics, and embraced predatory offerings and compliance worst-practices in order to fuel growth and profit from facilitation of fraud against consumers and the government," said Hindenburg. SEE ALSO: <a href="https://www.businessinsider.in/tech/news/how-we-can-use-bing-ai-chatbot-on-mac/articleshow/98901086.cms">Bing's AI Chatbot is now accessible on Mac: Here’s how you can use it</a> <a href="https://www.businessinsider.in/tech/news/chatgpt-prompts-to-boost-your-productivity-and-creativity-in-2023/articleshow/98693400.cms">ChatGPT prompts to boost your productivity and creativity in 2023</a>

Hindenburg report wipes out $526 million of Jack Dorsey's wealth

<ul><li>Florida Governor Ron DeSantis proposed legislation banning digital currency from the US central bank.</li><li>The Fed has been looking into the creation of a digital dollar at the direction of President Biden.</li><li>DeSantis said a Fed-issued digital coin would promote surveillance and stifle innovation.</li></ul>Florida Governor Ron DeSantis is not on board with the potential launch of a central bank digital currency by the Federal Reserve.On Monday, DeSantis <a href="https://www.flgov.com/2023/03/20/governor-ron-desantis-announces-legislation-to-protect-floridians-from-a-federally-controlled-central-bank-digital-currency-and-surveillance-state/" target="_blank" rel="noopener">proposed legislation</a> that would make Florida the first state in the country to ban the use of digital currencies issued by the Fed or any foreign central bank. The Fed has been studying the feasibility of a CBDC at the direction of President Joe Biden.A <a href="https://www.businessinsider.com/personal-finance/cbdc">CBDC is a digital version of an existing currency that,</a> like its physical fiat counterpart, would be backed by the full faith and credit of the issuing government. Talk of CBDC's heated up during the cryptocurrency boom of 2020 and 2021, which put pressure on governments to explore the potential issuance of their own digital currency.Proponents of CBDCs argue that a digital dollar would enable faster transactions with lower fees, improved efficiency with cross-border exchanges, and improved accessibility to the unbanked population.But according to DeSantis, a digital currency issued by the Fed "is about surveillance and control" and would ultimately hurt innovation."The Biden administration's efforts to inject a centralized bank digital currency is about surveillance and control. Today's announcement will protect Florida consumers and businesses from the reckless adoption of a 'centralized digital dollar' which will stifle innovation and promote government-sanctioned surveillance," DeSantis said.DeSantis also argued that any digital currency issued by the Fed would diminish the role of community banks, which have come into focus this month amid the ongoing regional banking crisis."A federally sanctioned CBDC as proposed by the Biden administration would diminish the role of community banks and credit unions in our financial system as CBDC currency would be a direct liability of the Federal government, rather than of a chartered financial institution, shrinking market lending power," DeSantis said. While there is no official timeline for the launch of a Fed-issued digital dollar, or even confirmation that the Fed will move forward with one, it is set to launch its FedNow Service in July. FedNow Service is a real-time payments system that is meant to eliminate the existing delays for clearing financial transactions between different institutions. Some view the launch of the FedNow Service as <a href="https://www.coindesk.com/policy/2023/03/15/us-federal-reserves-real-time-payments-system-coming-in-july/" target="_blank" rel="noopener">a potential precursor to the launch of a CBDC.</a>DeSantis called on likeminded states to "join Florida in adopting similar prohibitions within their respective commercial codes to fight back against this concept nationwide."

Florida Governor Ron DeSantis proposes banning a digital currency from the Fed, arguing it will stifle innovation and promote surveillance

<ul class="summary-list"><li>Insider's Phil Rosen asked ChatGPT to weigh in on the pros and cons of cryptocurrencies.</li><li>The viral language bot offered five reasons for and five reasons against the digital asset class. </li></ul>ChatGPT has demonstrated proficiency in writing <a href="https://markets.businessinsider.com/news/stocks/chatgpt-markets-write-stocks-economy-meme-ai-microsoft-insider-anlayst-2023-1">articles</a>, <a href="https://www.businessinsider.com/realtors-using-ai-chatgpt-to-write-property-listings-emails-2023-1">real-estate listings</a>, and even <a href="https://www.businessinsider.com/chatgpt-replied-hinge-matches-dating-app-ai-2023-1">dating-app messages</a>. But what does OpenAI's buzzy artificial intelligence tool have to say about cryptocurrencies?The bot doesn't have access to real-time markets data, and its knowledge only goes up to 2021, meaning it is oblivious to all the events that transpired during the 2022 crypto crash — including FTX's collapse.Still, it has plenty of historical intel to work with. Here's what the bot had to say in response to the query "make the argument for/against crypto," while also emphasizing that everyone should do their own research and consult a financial advisor before making any investment decisions. <h2>ChatGPT makes the case against crypto</h2><ol><li>Volatility: This makes crypto "a risky investment and makes it difficult for them to be used as a reliable means of payment."</li><li>Security concerns: Decentralization makes crypto vulnerable to "hacking, fraud, and other security risks, and there have been several instances of major exchanges and wallets being hacked and funds being stolen."</li><li>Regulatory uncertainty: The lack of regulation "creates uncertainty for investors and raises questions about their legitimacy and stability."</li><li>Lack of acceptance: "Cryptocurrencies are not yet widely accepted as a means of payment, and it can be difficult to find merchants who accept them. This limits their usefulness and practicality for everyday use."</li><li>Energy consumption: Cryptocurrency mining requires significant energy use, and this "raises concerns about the environmental impact of cryptocurrency mining and the sustainability of the technology."</li></ol><h2>ChatGPT makes the case for crypto</h2><ol><li>Decentralization: "This makes [crypto] resistant to censorship and government control, and gives users more control over their own funds."</li><li>Efficiency: "Cryptocurrencies have the potential to offer faster and more efficient transactions compared to traditional financial systems. Transactions can be processed quickly and with lower fees, making them a more accessible and affordable option for many people."</li><li>Financial privacy: "Cryptocurrencies offer greater financial privacy compared to traditional financial systems, where transactions can be tracked and monitored by financial institutions and governments."</li><li>Innovation: "Cryptocurrencies are driving innovation in the financial sector and beyond, and have the potential to bring about new and improved financial products and services."</li><li>Accessibility: "Cryptocurrencies have the potential to make financial services more accessible to people who may not have access to traditional banking services, such as those living in underbanked or unbanked areas."</li></ol>

You Searched For "Unbanked" and got 9 results

14 million American adults don't have a bank account. They're still waiting for a stimulus payment.

Isaac Scher

Just 33% of the Indians that are eligible for a loan have access to a bank account

Dilsher Dhillon

Unbanked rural India is next on the SBI radar

BI India Bureau

This Social Enterprise Runs A Global Crowd-funding Platform; Eyes $3-5 Million In Series B Funding

Sanghamitra Mandal

Aadhaar Gaining More Teeth, To Play Key Role In ‘Banking For All’

Sanghamitra Mandal

LA considers ban on cashless businesses because they exclude low-income people, people of color, and seniors

Katie Balevic

Hindenburg report wipes out $526 million of Jack Dorsey's wealth

IANS

Florida Governor Ron DeSantis proposes banning a digital currency from the Fed, arguing it will stifle innovation and promote surveillance

Matthew Fox

I asked ChatGPT to make the case for and against crypto and it weighed in on regulation, energy, and decentralization

Phil Rosen

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