IT firm Ingenico today said it has entered into an agreement with leading infrastructure firm IL&FS's education and technology arm to provide a smart card-based biometric financial inclusion solution for banking services.

The electronically operated banking system infrastructure has created banking Points of Service (PoS), spread across geographies, to provide banking service to the unbanked population of the country within three kilometres of their residence, the company said in a press statement.

"Their solutions perfectly address all the technology challenges we had and have been pivotal in making this initiative a resounding success," IL&FS Education and Technology Services Vice President Roy Mathew said.

The scheme is a part of the regulator's efforts to improve financial services reach to masses in new and innovative ways via online biometric authentication through internet connected PC system, Smart card-based authentication with PoS terminals, Mobile based Financial Inclusion Applications (SMS, USSD,GPRS etc).

This highly efficient and cost effective solution rolled out by Ingenico caters to various financial transaction needs of the common man. It ensures that all kinds of financial institutions, even the smallest, can carry out inclusive banking.

The solution enables common man to easily access micro- banking services and helps in bridging the rural urban financial divide in a very effective manner, the company added.