atulpant's blog

The Social Imperative

There is a perhaps a larger principle at play here - is denial of acceptance of signature, denial of a fundamental civil right. I am not sure of the answer and will leave this for authorities on Civil Rights to ponder.

Another larger principle at play here is that of financial inclusion, which is a sub-set of social inclusion. In the global context, United Nation’s charter on disability, states:

“The purpose of the World Programme of Action concerning Disabled Persons is to promote effective measures for prevention of disability, rehabilitation and the realization of the goals of ‘full participation’ of disabled persons in social life and development, and of ''equality''.

This means opportunities equal to those of the whole population and an equal share in the improvement in living conditions resulting from social and economic development. These concepts should apply with the same scope and with the same urgency to all countries, regardless of their level of development.”

Further United Nation’s  ‘Standard Rules on the Equalization of Opportunities for Persons with Disabilities’ states:

People with disabilities - as citizens of their societies - should have the same rights and obligations as all other citizens… It is ultimately the responsibility of all Governments to ensure that disabled people:

- live as dignified and independent a life-style as possible within the community;

- take an active part in the general, social and economic development of society;

- receive education, medical care and social services within the ordinary structures of their societies.

      Governments can enact laws to guarantee equality and to prevent discrimination. The cost of denying equal opportunities to persons with disabilities is high not only in financial terms, but in the loss of their contribution to society.

In the Indian context, equal access to banking services can be derived from the Constitution which, “solemnly resolves to secure to all its citizens… equality of Status and of Opportunity” and bestows the Fundamental Right to Equality, which states,

“No citizen shall, on grounds only of religion, race, caste, sex, place of birth or any of them, be subject to any disability, liability, restriction or condition with regard to access to shops, public restaurants, hotels and places of public entertainment; or the use of wells, tanks, bathing ghats, roads and places of public resort maintained wholly or partly out of State funds or dedicated to the use of the general public.”

Contextually put, what access to “wells, tanks and bathing ghats” was when the Constitution was drafted, access to banking and financial services or equal access to electronic information is today.

The People with Disabilities Act, 1995 does not say anything specifically about provision of equal access to services by the private sector, nor does it specifically cover equal access to electronic information. This Act needs to be amended and the concerned Ministry is currently soliciting public opinion on the Act. I sincerely hope the new avatar will be more encompassing and progressive.

Ministry of Finance, Reserve Bank of India, Indian Bank’s Association and related organizations have a moral and social responsibility to ensure that all citizens of India, including people with disabilities, get equal access to banking and financial services, so that they can improve quality of their life, live independently and contribute to building the nation.

As food for thought I would add that it took a World War to catalyse disability movements in the West. In USA, Korean and Vietnam war brought the issue of civil rights of disabled in the open. Will we in India be more civilised about bringing equality or will we need to go to war for this.

The Business Imperative

When the traditional markets of the FMCG industry were saturating they started looking at rural markets, making innovations in the 4Ps (product, place, price and promotion) to cater to the specific needs and challenges of the rural markets.

Technology companies have started realizing that their traditional markets are saturating and they are looking at low-income segments as next new adopters of technology. Hewlett Packard has an i-Community initiative in Kuppam district of Andhra Pradesh, where they are experimenting with leveraging technology for providing livelihoods. HP has also experimented with voice-recognition based railway reservation system, targeted at illiterate audience.

Enlightened and future oriented banks in India may well consider people with disabilities as a potent market segment. Disability statistics in India is hard to come by, thus I cannot hazard a guess on the numbers that constitute this segment or what kind of discretionary income they possess and how lucrative they are as a deposit base. Or are they a possible market looking for credit – entrepreneurs looking for loans or regular income earners looking at plastic money or car or home loans.

However, broad trends suggest that people with disabilities are a potential market because the kind of facilitation they require is similar to that required by elderly citizens, whose senses diminish with age. The elderly segment, with encashment of their provident fund, insurance and other investments, is certainly a segment with decent financial prospects, lucrative enough for banks to offer their various services.

I must add here that while I am not a visually disabled person myself, this article is an investment into my own future because when with age, my senses diminish hopefully banking and other services in India will be more accommodating and understanding of my special needs!

If ‘people with disabilities’ forming a market seems far-fetched, consider Grameen Bank and its success in micro-finance. In 1976, when the founder of Grameen Bank, Prof. Muhammad Yunus started, the banks he approached for seeking micro-credit for rural poor, turned him away because the intended recipients were not credit worthy (as per bank’s definition) and had no collateral to offer. Today, with persistence and innovation, Grameen Bank has lent more than US $5 billion to over 5 million people. The initiative has led to a blossoming micro-finance industry, which according to the Micro-credit Summit Campaign Report, as of Dec. 31, 2004, some 3,200 micro-credit institutions reported reaching more than 92 million clients.

Prof C K Prahalad’s work on servicing ‘bottom-of-the-pyramid’ markets and success stories like Aravind Eye Hospital and HLL’s Shakti Ammas, further inspire confidence that people with disabilities could be looked as a potential market for banking and financial services.

Prof Clayton Christensen of Harvard Business School explains in his book, “The Innovator’s Solution”, that large incumbent companies focus on servicing the high-end customers. Example, mobile phones constantly make phones that are lighter, have more features, longer battery life and are usually either more expensive or more complex to use. This he describes as 'sustaining innovation'. In such a scenario, a new player, who has lesser financial muscle, cannot take the incumbent head-on. Instead, the new player should focus on the under or over-served customers. Say, people who need less complex or cheaper mobile phones.

If the new player can formulate a disruptive innovation and target non-consumption, then the chances of success are very high because the incumbent will most likely choose not to fight simply because its high cost-structures won’t allow it play a low-value game. Example, will Intel make a 286 chip today? But MIT Media Labs, with Dr Nicholas Negraponte, is working a $100 laptop, targeted at students from low-income families. This laptop requires much less computing power than Intel’s latest chips like Centrino and hence the cost of production can be significantly lower, while huge demand makes the business model very viable. Intel may not be in a position to develop low-end chips because of its cost structure but a smaller or new chip making company could leverage the mega opportunity for low-cost computing.

Prof. C K Prahalad and Prof. Gary Hamel in their book, ‘Competing for the Future’, suggest a similar model. They explain that new market opportunities do not lie in servicing the ‘articulated need of the served market’, but in addressing the ‘unarticulated needs of the served market’ or ‘articulated needs of the un-served market’ or ‘unarticulated need of the un-served market’.

Innovative banks in India may well consider looking at disruptive innovation to service the articulated and unarticulated need of the un-served market of ‘people with visual and other disabilities’ and reap the benefits of sustained returns on investment and competitive advantage through a unique differentiation of being first Indian bank to offer “Universal Banking Services”.

Keeping in view the tremendous social and technological changes, while IBA should revisit its Model Deposit Policy, innovative among the banks should note that IBA says, “With liberalization in the financial system and deregulation of interest rates, banks are now free to formulate deposit products within the broad guidelines issued by RBI”. Thus, IBA's Model Deposit Policy is only a guideline and innovation with-in its purview seems very much possible. It is for the bank's to realise and leverage a new market segment.

Conclusion

It is imperative that banking policies in India be amended to allow people with visual disabilities to open and operate a bank account independently. Without this crucial first step, financial inclusion that technologies like phone or internet banking, chip and pen based identification, talking ATMs and other emerging technologies like biometrics will facilitate will not happen and the financial and social gap will only widen. On the other hand, taking the first step of allowing independent bank accounts with full operational authority to visually disabled people, will lead to banking and financial services becoming universal. Which will in-turn be another step towards equality of status and opportunity, enshrined in India’s constitution.

Is a blind person same as an illiterate person?

Banking guidelines in India seem to suggest this.

In its Model Deposit Guidelines, the Indian Bank’s Association (IBA), the representative body of banks in India, which is instrumental in influencing and guiding banks’ policies, clubs ‘illiterate and blind people’ together and suggests to its member banks,

“The Bank may at its discretion open deposit accounts other than Current Accounts of illiterate person. The account of such person may be opened provided he/she calls on the Bank personally along with a witness who is known to both the depositor and the Bank. Normally, no cheque book facility is provided for such Savings Bank Account. At the time of withdrawal/ repayment of deposit amount and/or interest, the account holder should affix his / her thumb impression or mark in the presence of the authorized officer who should verify the identity of the person. The Bank will explain the need for proper care and safe keeping of the passbook etc. given to the account holder. The Bank official shall explain the terms and conditions governing the account to the illiterate / blind person.”

As a result, in India today, if you are a blind or low vision person, chances are that most banks will not open your independent bank account, they will either insist that you open a joint bank account with a sighted person or open a bank account with no cheque book facility or both. Even these policies are not consistent. A branch manager of the same bank in a big city could follow a policy very different from that followed by his counterpart in a smaller city. Example, collection of cheques at par and free remittance facilities by way of issuing D.D./M.T./T.T. may be given in one branch but not in another. These inconsistencies are because either the policy is not defined or managers are ignorant.

Inspite of the fact that IBA states its first objective as,

“To promote and develop in India sound and progressive banking principles, practices and conventions and to contribute to the developments of creative banking”

and,

“To develop and implement new ideas and innovations in banking services, operations and procedures”

Quite anachronistically it has not followed its policy of  ‘sound and progressive’ principles and innovations and creativity in banking, when it comes to addressing the needs of visually disabled people. A blind Ph.D. holder is still an illiterate in the eyes of most banks.

Developments in Universally Accessible Banking

In most of the western world banking and financial services are universally accessible. Since the British law heavily influences most of India’s policies and regulations, in this section I have focused on developments in banking in U.K. for addressing the special needs of visually disabled users. In U.K., the Disability Discrimination Act (DDA) of 1995, which was further amended in 2004, lays down the policies for providing services to visually disabled audience for all service providers, including banks. The key principle of DDA is ‘reasonable accommodation’ and requires all service providers, including banks, to provide as equal a service as reasonably possible to people with disabilities, as the service provider would provide to other users.

In U.K. today, visually disabled people opening independent bank accounts and signing cheques is taken for granted and the focus is now on making branches and online banking more accessible, providing bank statements in Braille, large print and audio tape format and taking other measures that meet the special needs of this audience.

If the main issue for banks in India is risk of fraud, because of possible inconsistencies in signatures of visually disabled people, then accepting ‘signature stamps’ instead of personally signed cheques could be a way out. In U.K. banks accept signature stamps from visually disabled users.

More interestingly, in Japan almost everyone has such signature stamps, not just visually disabled people. Its called Inkan or Hanko and they are of two types, one called ‘jitsu-in’, a signature stamp duly registered with the local municipal office which is used for signing legal documents and in contracts like buying, selling or renting real-estate. The other is ‘mitome-in’, which is not registered and is used for things like acknowledging receipt of registered mail or courier. In fact, non-registered ‘mitome-in’ is used for opening bank accounts and even most sighted people use a stamp instead of personal signatures to operate their bank account.

The onus of losing the signature stamp or its possible misuse lies with the user and not with the bank. This is much like a sighted user being responsible for his or her password for phone or online banking. I have seen many people storing their ATM PIN in their mobile phones and if they lose their mobile phones they are as equally at risk of misuse and fraud, as a person who may lose a bank signature stamp.

In U.K. banks also issue a letter stating that they will accept the signature-stamp of visually disabled users. The stamp, along with the authorization letter from the bank, can be used in shops and other establishments.

The Banker’s Code established by the British Banker’s Association suggests other measures to assist people with visual and disabilities. Guided by the Code, most banks in U.K. provide the following additional services besides opening their independent bank account:

• Cheque / credit book templates to help write cheques, credit slips and signatures
• Credit / debit card templates to assist in signing
• A bank note gauge to help identify different value notes
• Credit slips and cheque book reminder slips in cheque books with a hole punched in the stub to differentiate them from cheques

In future, as technology-based identification becomes less costly and more ubiquitous, like use of smart cards or biometric solutions, written signatures will be required less frequently. We are already seeing this in the increased use of chip & pin based credit and debit cards. This will make the banking and financial services more accessible and universal.

Technology-based identification will also give 'identity theft' a whole new meaning. However, electronic identity theft will be as plausible for a sighted person as for a visually disabled person, hence denying independent ownership and operation of a bank account to a visually disabled person is meaningless. He or she does not have any specific disadvantage on account of the visual impairment when it comes to electronic identity theft.

Awareness is the Way Forward in India

The key issue in India, for visually disabled users, is getting through the first hurdle – opening and operating a bank account independently. If this is made possible through a clear policy, then emerging technology will by default make banking services more and more inclusive.

Take the case of phone banking. If the entire transaction, including authentication, is voice driven then there is no special challenge a blind or low vision user faces.

Or online banking, where if Universal Web Accessibility Guidelines, as laid down by World Wide Web Consortium’s Web Accessibility Initiative (W3C/WAI) are adhered to, a blind or low vision user using an assistive device like screen-reader or screen-magnifier can easily avail of banking services independently.

I think there is a lack of awareness in higher echelons of banking industry in India and it is believed a visually disabled person cannot use a computer. This, when people like Mr. Ramkrishna, General Manager, IDBI and Mr. Ashwini Agarwal, who works with Punjab National Bank and many other visually disabled people are employed in the financial sector and use computers extensively in their work. What is needed is an awareness campaign to sensitize the banking industry about the ‘abilities’ of visually disabled people.

End of Part-1. Part-2 is at: node/454 

The Indian Express: Business As Usual By Unny

On a TV screen Jayalalithaa and Karunanidhi are seen. The headlines in the newspaper read, “DMK promises cheap rice and free TV”. The caption of the cartoon reads, “TV will generate enough hot air to cook the rice”.

Times of India: Just like that! By Ajit Ninan

March 30

There is a room where a press conference is on. Inside the room you can see TV crews hotly arguing with each other. Rahul Dravid is coming out of the room very angry. Someone inside the room is saying, “Speaking of walkouts, Dravid will make a good Parliamentarian”.

My sincere apologies, because of a work trip I have not been able to update my descriptive cartoon blog for almost a week now. Since it is easy to get to the cartoon archives in Times of India online, I am describing the last seven cartoons. I hope to be more regular from tomorrow, covering cartoons from other newspapers too.

Times of India: Just like that! By Ajit Ninan

March 27
There is a vast stretch of barren land. Far away some hills are seen and there is a watch tower, like the ones they have in prisons. Groups of convicts are seen scattered across the vast stretch. The convicts have stacked up their drinking cups to form a pyramid (four cups in the bottom, then three, then two and then one on top). A few paces away from a stack of cups, one convict is holding the heavy ball that is tied to his foot with a long chain, ready to roll and hit the stacked cups (like a bowling game). Two other convicts are standing on the side, holding their heavy balls, waiting for their turn. A police officer is explaining to a politician, "A cost-effective prison without walls and arms, to prevent Naxalites from blowing, stealing and freeing inmates".

The Indian Express: Business As Usual By Unny

Rajnath Singh is sitting on a desk writing. A flag with BJP’s Lotus is on the table. Standing behind him is Advaniji, who is saying, “Your first suspension of Khuranaji. Congrats, Rajnath”.

The Hindu: Cartoonscape

Amar Singh, who is on a mobile phone, and I think the other person is Mulayam Singh , are standing on a floor made of wooden planks, looking a bit distressed. A saw (only the tip of it can be seen) from below is cutting the wooden boards in circles around them. The circles are becoming smaller and smaller.

The Indian Express: Business As Usual By Unny

A man going in a three-wheeler is peeping out at a road sign which says, “Court Ahead, Dead Slow... Witness Crossing and Double Crossing”

The Hindu: Cartoonscape

In the first box, two guards are trying to pull a MP out of his chair and the title says, “Separating the MPs post from…”. In the second box there has been a huge explosion, the chair is broken into two, the guards have been thrown back, the MP is no where to be seen and the title says, “… another office of profit”.

The Indian Express: Business As Usual By Unny

In the backdrop there is a temple. In front there is a kiosk with the title, “Varanasi Tours”. The gentleman sitting inside the kiosk is on the phone saying, “Sorry. We need guides who’ll talk about a thousand years ago, not last week”.

The Hindu: Cartoonscape

In the first box titled, “Vision 1991”, there is a proportionately large P V Narasimha Rao and on his shoulders a smaller, kurta payjama clad Manmohan Singh is standing, holding a flag that says, “Economic Reforms”. In the next box titled, “Vision 2006”, a proportionately smaller, kurta payjama clad Manmohan Singh is there and on his shoulder a much larger, achkan clad Manmohan Singh is standing, who is a bit wobbly and is holding a placard that says, “Foreign Policy”.

The Indian Express: Business As Usual, By Unny

Prakash Karat of CPI(M) is sitting on a table and preparing election campaign leaflets. One leaflet on top says “Kerala CPI (M)” and the other says, “CM Candidate?!”. Standing behind is Sitaram Yechuri and he is saying, “Sort it out fast, Comrade. Iran’s waiting”.

The Hindu: Cartoonscape

There is a politician standing on a stool. He is scared and sweating. His one hand is stuck in a jar. The jar has a few cookies and a spider ready to bite. In the background is Parliament House and a Doctor, followed by a nurse are rushing out ready to give medical aid. The doctor is saying, “Oh! These sting operations…”.

At EnableAll, they are encouraging the internal team to start a blog (I guess not enough community members are starting their blogs, hence the pressure tactics on us!).