Kshanadalli Hana – Instant Payment System through Green Channel Initiative Qorus-Infosys Finacle Banking Innovation Awards 2024

Karnataka Gramin Bank, with its extensive network of 1121 branches and 19 regional offices across 22 districts, serves over 1.4 crore customers, predominantly in rural areas. To enhance service efficiency, especially for illiterate customers, the bank introduced "Kshanadalli Hana" in collaboration with NABARD and FinTech company M/s Integra. This initiative enables customers to conduct transactions using their Aadhaar number and biometric verification, eliminating the need for physical slips or cheques. The bank provided internet-enabled tablets with biometric devices to all branches, allowing Aadhaar-linked account holders to perform transactions seamlessly. Developed on a robust architecture with MySQL, Linux, and a three-layer system, the application ensures security through two-factor authentication and idle-time re-login requirements. The system also offers role-based access control and real-time monitoring via SMS and email alerts. Integrated with the bank’s Finacle 10.2.25 CBS, Kshanadalli Hana facilitates digital transactions that bypass the bank’s internal network, ensuring real-time processing without delays. This initiative has significantly reduced transaction time from 3-5 minutes to just 30 seconds, enabling over 20,000 transactions per day and introducing a single window concept to streamline operations. Additionally, the risk of maintaining physical records is mitigated as data is securely stored with proper backups. The initiative was a collective effort involving various wings of the bank, from IT and strategic planning to risk management and internal control, ensuring comprehensive security and efficiency. By aligning with modern banking trends, Karnataka Gramin Bank has substantially improved customer service and transaction turnaround time, making banking more accessible and efficient for its rural clientele.