• Oneworld South Asia highlights that India’s strategy to combat Multi Drug Resistant TB (MDR-TB) might be failing to stop the spread of the disease. There are 2.2 million new cases of TB every year.
• The CGAP Microfinance Technology Blog picked up a story from Business Standard on Andhra Pradesh government’s plan to provide rural pensions through the mobile phone network
• iGovernment reports that BSNL, the state owned telecom provider, plans to roll-out broadband connectivity to Community Service Centres (CSCs) and other e-Governance locations in 25,000 villages across India

It’s my belief that most .gov innovations go unnoticed and the role of the government as an innovator is overlooked by many in the Social Entrepreneurship space. Of course, here at ThinkChange India, we capture pattern-breaking social change ideas wherever they happen – .com, .org and yes even .gov.

The Indian Finance Ministry in the last year’s union budget proposed the introduction of a new financial product for senior citizens called ‘Reverse Mortgages’ (Via MeriNews):

A property worth Rs 1 crore may fetch you Rs 22,500 per month for the
next 15 years. Reverse mortgage provides security in old age to people
who are ‘house rich’ and ‘cash poor’.

In the case of conventional mortgage, you take a loan from a bank and
purchase property. While in the case of reverse mortgage, you have a
property and take a loan against that property. So the starting point
of the transaction in the case of ‘reverse mortgage’ is the opposite or
reverse of conventional mortgage, and hence the name.

Why is this important in the context of providing social security for senior citizens in India? The coverage on pensions is still very limited in the country. As the article says:

Reverse mortgage is a major initiative for providing social security to
senior citizens. It is all the more useful for people who do not
receive pension or are unable to purchase annuity plans. Burgeoning
pension liabilities have compelled the government to introduce the New
Pension Scheme.

What’s interesting to me is what the proposal also captures in the social landscape. As we climb the ladder of progress, taking care of one’s aging parents becomes less of the priority for many in the younger generation. While most parents build an asset (like a house) and expect to pass it on to their siblings, they also expect their sons and daughters to support them (financially and otherwise) during post-retirement. Reverse Mortgages add a twist to the story, where seniors can leverage on their hard earned asset, be less dependent on their children, and in my opinion lead a more dignified life.

Looks like mobile banking has hit the critical mass where bureaucrats feel the need to regulate it:

RBI Executive Director R B Barman said this week that a central bank committee is examining the regulatory challenges raised by mobile banking. The committee is expected to report recommendations next month, leading next to RBI drafting the requisite changes to the country’s regulatory framework.

In addition to regulation, RBI is also looking at new ways to use mobile banking to reach greater users. Mark Pickens of CGAP writes:

RBI is also closely watching several pilot schemes using mobile connectivity to improve access to financial services among low-income Indians. As the Economist reported earlier this month, one program in Andhra Pradesh is testing how to deliver pensions and unemployment benefits to around half a million people in villages, via specially-equipped mobile phones in the hands of local payment agents and smart cards issued to recipients. A parallel POS-based system is also being tested. So far, 40,000 cards have been issued.