1. REPORT ON EFFECTIVE ISSUEING OF SMART CARDS TO THE PUBLIC BY
INDIAN GOVERNMENT
FORTUNE INSTITUTE OF INTERNATIONAL BUSINESS, NEW DELHI
PGDM (2012-2014),Term-2,SECTION-C
SUBMITTED BY:
SANGAM LAL SIVA RAJU-138
SUBMITTED TO: SUBMISSION DATE:09-10-2012
ASST.PROF PANKAJ CHAUHAN

2. ABSTRACT:
In India, delivery of government benefits via smartcards remains limited, however the rapidly
growing smartcard applications naturally call for a push by the government of India through
imaginative fiscal and promotional policies and for this sector and local manufacturing.
TABLE OF CONTENTS:
S.NO CONTENTS PAGE NO
1. INTRODUCTION 1
1.1 STATEMENT OF THE PROBLEM
2. PURPOSE AND SCOPE OF WORK
2.1 PURPOSE
2.2 SCOPE
3. APPROACH AND METHODOLOGY
3.1 APPROACH
3.2 METHODOLOGY
4. BIBILOGRAPHY
1. INTRODUCTION:
Asia’s No.1 world’s No.2 Smart Cards Expo 2012 is going to held at Okhla industrial estate,
New Delhi in India on covering Multi-application ID cards in e-Governance space will cover
topics like secure multi-application ID card in rapidly growing e-governance ecosystem. It ,
therefore , gives us a great sense of satisfaction to witness the on-going boom in smart card,
RFID(radio frequency identification) and Biometrics applications in India. By and large,
these technologies are being promoted by the government of India’s initiatives and financing
of major projects like world’s largest smart card based national id project, being implemented
by the Registrar general of India (RGI) under the ministry of home affairs and the unique
identificationproject to provide unique identity(UID) numbers to about 600 million residents

3. in the country, being implemented by unique identification authority of india (UIDAI),under
planning commission.
The other applications, which are receiving increased government attention, include: Driving
license, Vehicle Registration, e-Passports, eBanking, micro-finance, mobile payments, transit
applications, e-ticketing, Toll collection, Automatic fare collection and several other projects
under e-Governance, such as NREGA (national rural employment guarantee act) project,
RSBY(rashtriyaswasthyabhimayojana) and PDS (public distribution system) project.
The ministry of road transport and highways (MORT&H) and national highways authority of
india (NHAI) have decided to use RFID technology, for toll collection on the entire national
highways network. India has a huge road network, consisting of national highways
(70,934kms) and state highways(1,31,899km). RFID technology will enable toll collection
without making the vehicle to stop, ensuring seamless travel and efficient toll collection
delays at toll plazas cost the economy an estimated Rs 87,000crore every year.
On the other hand, the ministry of urban development, govt of india is prompting national
common mobility card (NCMC). The idea is to enable the user with single transport system
that provides efficient and hassle-free travel experience across the length and breadth of
country.
In a speech presenting the 2008-2009 Union Budget, Finance Minister ShriP . Chidambaram
announced initiatives to deliver benefits under the government program to provide subsidized
basic foods and fuels (the public distribution scheme) using smart cards in the state of
Haryana and the union territory of Chandigarh.
1.1.STATEMENT OF THE PROBLEM:
India has large population with 1.24Billion placed 2nd after china in the world, so making a
process/system completely smart is a big question it is a very difficult task to provide smart
card to each and every individual in a billion population.
India is a subcontinent with diverse cultures and languages; it’s a little difficult task to
making smart card application user friendly by providing separate language for each state and
proving customer help line for each language.
Almost 70 percentage of Indian population is residing in villages and most of them are
illiterates, so making them understand, convenient and effective utilization of smartcard is a
highly difficult, highly expensive and time consuming.
2. PURPOSE AND SCOPE OF WORK:
2.1 PURPOSE:
The purpose of this report is to establish a appropriate process of enrolment for smartcard
and how to aware the general public about the applications of smartcard payment and
services.

4. 2.2 SCOPE OF WORK:
This study will attempt to asses the importance of a effective and transparent enrolment
process and proper authentication, safeguarding from being hacked/misused. This will
also aware the public about the secured/protected smartcard payments.
3. APPROACH AND METHODOLOGY:
3.1. APPROACH:
The approach for the evaluation was derived throughanalysing the concerns of the benefit
provider (Government) and the end beneficiaries (Citizens)
Concerns
From Government’s Perspective
• Will it reach the right beneficiaries?
• Can it reach all the beneficiaries in the state?
• What are the Value propositions to the Government?
• Will it prevent frauds?
• Can we disburse the money in a shorter period?
• Can we sustain it for long time?
• Will it ease the Manageability for the government?
From Beneficiaries’ Perspective
• How easy and convenient is it to complete the transaction?
• What are the Value propositions to the End-Beneficiaries?
• Can the system be trusted?
• How easy is it to obtain and maintain the smart card?
• Does it help in getting disbursements at the right time?
• Does it provide any flexibility of timing to avail the disbursements?
• Does it reduce the overall time needed to avail theservice?
3.2 METHODOLOGY:
Enrolment Process
• List of beneficiaries to be enrolled is obtained from the DoRD
• Information of the beneficiaries is collected from the field along with photograph and finger
print

5. • Data is sent to the Central site in CDs
• Personalization is done at the Back Office in ALW
• Bank Account is opened for the beneficiary
• Takes 2 weeks to process
• A new enrolment has to be done for duplicate card Disbursement
• List of beneficiaries entitled for disbursement is obtained from the DoRD
• Funds are credited to the banks by the DoRD office
• Bank accounts of the beneficiaries are credited with the disbursement amount
• Data is loaded into the respective POT terminals of the CSPs
• On pre-determined date & time, disbursement of funds to the beneficiaries is done after
proper authentication (photo id and finger print)
• Duplicate receipts are generated – one given to the beneficiary and one kept for the record
• Beneficiary bank account is debited with the amount disbursed
MIS Reporting
• Accounts are consolidated and report is given to the bank.
• Banks sends consolidated report to the DoRD
Financial Information Network and Operations
4. RECOMMENDATIONS:

6. 1. Integrated POS terminal is preferred
2. Current enrolment process to be refined
3. The process needs to be revisited due to short disbursement cycle.
4. Multi-vendor, multi-zonal, phased approach could beexplored for scaling up.
5. Spread the disbursement period over the month, whenscaling up.
6. Vendors should implement Service management processes based on ITIL guidelines.
7. Vendors should be ISO 27001 certified (Information Security Standard)
8. Appropriate MIS reports should be generated by the system for better management
and analysis.
9. List of pending enrolments.
5. CONCLUSION:
Overall assessment and conclusions of the technology engagement and business processes
followed by the two companies in the Smart Card Pilot implementation are as follows:
Technology: Okay
Technology adapted for the solution is scalable and secured. With the current
understanding of the technology, we do not see any barriers or “show stoppers” for
scalability and security. However, there are certain limitations in the pilot
implementation, for which solutions have been recommended in this report. These
recommendations should be followed and corrective actions should be taken before the
implementation.
People & Organization: Need to ramp-up
Considering the fact that the concepts are evolving and the companies are relatively in the
start-up mode, both thecompanies need to ramp-up in terms of people strength, training,
both in managerial and technical and need to build robust organizational structure for the
operation, support and sustenance
6. BIBILOGRAPHY:
1.An article “SMART CARDS EXPO 2012” in daily news paper BUSINESS
STANDARD_The smartinvestor, page no:8,dated 4thoct 2012
2. Official website of “SMART CARDS EXPO 2012” event organizer
www.electronicstoday.org
3. http://www.nisg.org/knowledgecenter_docs/B02020008.pdf on 07-oct-2012
4.http://www.cab.org.in/CAB%20Calling%20Content/Payment%20Systems%20-
%20Risk%20And%20Risk%20Mitigation%20Measures/Govt%20Payments%20Through%2
0Smarcards%20in%20AP.pdf on 07-oct-2012
5.http://deity.gov.in/content/mission-mode-projects on 07-oct-2012