Mbanking Handbook Final Mail

8/18/2019 Mbanking Handbook Final Mail

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Regulatory and On-Boarding Guidelines for

Regional Rural Banks and Central Cooperative Banks

HANDBOOK ON

MOBILE BANKING

germancooperationDEUTSCHE ZUSAMMENARBEIT


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2 Handbook On Mobile Banking

PUBLISHED BY

Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH

GIZ NABARD Rural Financial Institutions Programme

CONTACT

Dr. Detlev Holloh

A-2/18, 4th Floor,Safdarjung Enclave,

New Delhi 110 029 / INDIA

Phone: +91-11-4949 5353

Telefax: +91-11-4949 5393

Email: [email protected]

HOMEPAGE

www.giz.de

RESPONSIBLE

Amit Arora

[email protected]

AUTHOR

Sunil Aggarwal

EDITOR

Nitin Jindal

ART DIRECTOR

Anshul Sharma/Artworkstudios.in

NEW D ELHI, OCTOBER 2014

DISCLAIMER

Since the guide addresses all SCBs and DCCBs in India, it is possible that the requirements of some banks do

not ft into the defned processes. The contents are indicative and supporting in nature. Also the cost heads

mentioned in this document are indicative in nature. While every care has been taken to ensure accuracy, banks

are advised to exercise their own due diligence and treat this guide only as an additional point of reference.

germancooperationDEUTSCHE ZUSAMMENARBEIT


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3

Regulatory and On-Boarding Guidelines for

Regional Rural Banks and Central Cooperative Banks

HANDBOOK ON

MOBILE BANKING


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PREFACE ................ .................................... ..................................... ...... 5

A. SNAPSHOT ......... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ....... ...... 6

B. CURRENT SCENARIO .........................................................................7

C. REGULATORY PROVISIONS ................................. ............................... 9

D. IMPS MEMBERSHIP GUIDELINES ..................................... ................... 11

E. RANGE OF SERVICES .................................... ..................................... 12

F. TECHNOLOGIES ................................ .................................... ............. 13

G. SELECTION OF MOBILE BANKING SOLUTION ..................................... 14

H. SELECTION OF MOBILE SOLUTION PROVIDER(S): ............................... 16

I. PROJECT COST ESTIMATES ................................ ............................... 18

J. OPERATING PLAN ........................................................... ................... 20

K. ROADMAP FOR IMPLEMENTATION ................................... ................... 21

ANNEXURE ‘I’- MOBILE BANKING TRANSACTION PROCESS FLOW

UNDER DIFFERENT TYPES OF MODELS ..................................................22

ANNEXURE ‘II’ – LIST OF NON-BANKING ENTITIES AUTHORIZED BY

RBI FOR PRE PAID PAYMENT INSTRUMENTS ..................................... ...... 24

ANNEXURE ‘III’ – LIST OF IMPS MEMBERS ......... ...... ...... ...... ...... ....... ...... 26

ANNEXURE ‘IV’- STK APPLICATION ON OPERATOR SIM ........ ...... ....... ...... 30

ABBREVIATIONS .. .......... ...... ...... ....... ...... ...... ...... ...... ...... ...... ...... ...... ...... 31

CONTENTS


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Handbook On Mobile Banking 5

PREFACE

Mobile phone has emerged as the most effec-

tive mode of communication across the

globe in all the categories – voice, data,

images, video downloads/interactive

et al. It has already made redundant the use of camera,

watch, calculator, diary, video game consoles and i-pod.

Downloading of films and online streaming of TV may

decrease utility of conventional TV. It is further encroach-

ing upon the use of plastic cards, desk/laptops and tab-lets to access Internet. It has morphed into a one device

solution for all that a person is required to use for work

and entertainment. Bluetooth & NFC have increased its

connectivity to a variety of other electronic equipment.

Innovations in the areas of miniaturization, communica-

tion and storage capacities have further strengthened its

capabilities.

It is thus no wonder that mobile is becoming one of the

most prominent channels of banking as well. It is taking

over Internet Banking and all other forms of non-cash

banking transactions. Even in the area of cash transactions,

it may soon replace plastic cards for accessing ATM. It may

in fact reduce the very need of cash when the day-to-day

transactions between persons/merchants start happening

for instant transfer of funds on the spot.

Mobile banking is likely to play a very significant role in

regard to financial inclusion of vast section of the society

residing in remote areas. Due to logistics and commercial

considerations, banks are still away from a very large popu-

lation residing in rural areas. Poorer sections of the society,

even in banked areas, are deprived of basic banking facili-ties since the existing infrastructure is ill-equipped to cater

to their requirements. Mobile Banking is expected to play

an important role in bridging this gap as it significantly

reduces the transaction costs and helps in reducing need

for physical cash.

In India, so far progress in adoption of Mobile Banking

has been a little tardy. This is because of several reasons

like requirement of ‘smart phones’ to do secured mobile

banking while most of the population uses ordinary (fea-

ture) handsets. This scenario, however, is heading for a

rapid change as ‘smart phones’ are becoming more and

more affordable and also Mobile Banking solutions are

being developed to provide communication on ordinary

handsets. NPCI has recently setup a platform to facilitate

inter-bank transactions through ordinary mobile phones.

In addition, mobile communication network is fast moving

into interior parts of the country which will enable people

residing in remote areas to get connected to the mobile

communication.

All these developments have provided an excellent tool

in the form of the mobile for banks to achieve financialinclusion goals by reaching to the common man in every

nook and corner of the country. It is not far off when we

find a secured and use-friendly mobile banking within the

reach of masses in every nook and corner of the country.

Banks have recognized the potential of mobile banking.

Most commercial banks have launched their mobile bank-

ing products to cater to different segments of their client

base. These banks are backed by their own data centres,

technical, human and financial resources. Their aggressive

foray has started yielding results.

Following data is indicative of the exponential growth of

mobile banking transactions in the recent past:

Month No. of Transactions Amount (Rs. in lacs)

December 2013 88,92,790 2,26,130

June 2014 107,28,715 3,98,532

Growth 20% 76%

Data relating to Mobile Banking Transactions

(Source: Reserve Bank of India)

In the background of the above, it is crucial that rural/ cooperative banking sector moves on to mobile banking

at the earliest. Having already migrated to Core Banking

Solution, which is the foundation for on-boarding mobile

banking, these banks are now well positioned to move for-

ward even though constraints in terms of financial, technical

and human resources are a challenge. Fortunately, several

outsourcing models are available to address these concerns.

This handbook is intended to familiarize the banks about

the mobile banking solutions available in the market, the

regulatory provisions and other essential matters of com-

pliance. It also outlines the steps required to be taken to get

on-board the mobile banking platform.


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A. SNAPSHOT

i) In terms of guidelines issued by RBI, ‘Mobile Bankingtransaction’ means undertaking banking transactions

using mobile phones by bank customers that involve

accessing/credit/debit to their accounts.

ii) Banks having a valid banking license, have to seek one

time approval from RBI for starting mobile banking

services. RBI has issued detailed regulatory guidelines1

which the banks have to comply with while conducting

mobile banking business.

iii) Banks are required to have a mobile banking solutionlinked to their CBS.

iv) To be able to effect inter-bank payments, the Mobile

Banking Switch is required to be linked to IMPS, an

inter-bank payment and settlement platform setup by

NPCI, just like NFS for RuPay Cards. Currently, remit-

tances upto Rs. 2 lac can be done through IMPS.

v) To help banks in providing secured and user-friendly

mobile banking services (including inter-bank pay-

ments) to their customers having ordinary GSM (not

available on CDMA) mobile phones, NPCI has setup a

common USSD platform to link different telecom ser-

vice providers with banks.

vi) The range of services provided by a bank depends upon

the technology(s) adopted by them and the type of

mobile phones owned by the customers. Many banks

are offering multiple options so that customers having

ordinary mobile phones as well as those having ‘smart

phones’ get banking services as per capabilities of theirphones.

vii) There are several vendors offering mobile banking

solutions. The solutions are available on ownership

as well as ASP model2. BC assisted models are also

in existence. Annexure ‘I’ contains diagrammaticaldescription of transaction flow under each model.

viii) Banks can also avail the services of ASPs to avoid

owning the Mobile Banking Switch (similar to RuPay

Card Switch). Some of these ASPs are operating their

own Mobile Banking Switch, providing BC and PPI

services. These non-banking entities and several other

players in the market may be likely vendors for this

type of ASP services.

ix) Engaging BCs by banks is subject to regulatory guide-lines issued by RBI from time to time.

x) The structural diagram of mobile banking in India is

given below:

1 RBI Master Circular – Mobile Banking transactions in India – Operative Guidelines for BanksNo.RBI/2014-15/104 DPSS.CO.PD.

Mobile Banking. No. 2/02.23.001/2014-15 dated July 1, 2014 (enclosed in annexure)

2 ASP Model means outsourcing model under which the service provider installs its software solution at his own Data Centre and

provides services on the basis of fee per transaction.

OUTLETS DEDICATEDTO INDIVIDUAL

BANKS

OUTLETS OFFERINGMULTIPLE SERVICESINCLUDING THOSE

OF BANKS

MERCHANTSOFFERING BANKING

SERVICES ALONGSIDE THEIR

BUSINESS ACTIVITIES

DIRECTLY

MOBILE BANKING

THROUGH NON-BANKINGENTITIES AS BCs

OF BANKS


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3 Pre-Paid Payment Instruments (PPI) are stored value Instruments, defined under 3 categories –

i) ‘Closed System’ - for facilitating the purchase of goods and services from the issuer

ii) ‘Semi-Closed System’- for purchase of goods and services, including financial services at a group of clearly identified merchant

locations/ establishments which have a specific contract with the issuer to accept the payment instruments

iii) ‘Open System’ - for purchase of goods and services, including financial services like funds transfer at any card accepting merchant

locations (point of sale terminals) and also cash withdrawal at ATMs/BCs. Only banks are given permission by RBI to issue ‘OpenSystem’ PPIs. Detailed guidelines contained in RBI Master Circular No.RBI/2014-15/105 DPSS.CO.PD.PPI.No.3/02.14.006/2014-15

dated July 1, 2014

Most commercial banks and major urban cooperative banks are offering mobile banking services. Apart from

offering mobile banking services directly to the custom-

ers, banks also avail services of non-banking entities as

Business Correspondents (BCs) to reach out to wider sec-

tion of the customers, particularly in the remote areas.

These non-banking entities include authorized PPI issuers

as well as others. These BCs often operate their own mobile

banking platform, linked to CBS of the bank. Alongside

banking services, they also cater to various other financial

service providers. Some BCs also offer dedicated BC out-

lets for individual banks. Apart from banks, many other non-banking entities are

engaged in payment services/mobile wallet services. They

require authorization from RBI under the PSS Act, 2007

for setting up and operating Payment System in India. At

present, 30 non-banking entities have been authorized by

RBI for issuing Pre-Paid Payment Instruments (PPIs)3.

These non-banking entities can offer ‘closed system’ and

‘semi-closed system’ PPIs (not permitted to issue ‘open

payment system’ PPIs). RBI has issued detailed guide-

lines for issuance and operation of Prepaid Payment

Instruments. Annexure ‘II’ contains the list of these non-

banking entities.

Inter-Bank Transactions

Inter-bank remittances/payments may be facilitated

through RTGS/NEFT as well as IMPS (Immediate

Payment System setup by NPCI) in case of banks connect-

ed with both. Banks not connected to RTGS/NEFT can

offer inter-bank transfers through IMPS. To be a member

of the IMPS, the banks have to be either a direct member ofpayment settlement system or have to come through spon-

sorship by a direct member bank, similar to membership

B. CURRENT SCENARIO

List of Banks permitted to provideMobile Banking Service in India

RRBs and SCB/DCBs having Permission toProvide Mobile Banking Service

PUBLIC SECTOR BANKS 26

OLD PRIVATE SECTOR BANKS 14

NEW PRIVATE SECTOR BANKS 6

FOREIGN BANKS 11

URBAN COOPERATIVE BANKS 19

GRAMIN BANKS (Regional Rural Banks) 11STATE & DISTT CENTRAL COOPERATIVE BANKS 2

TOTAL 89

GRAMIN BANKS

1 Baroda Gujarat Gramin Bank

2 Baroda Rajasthan Gramin Bank

3 Baroda Uttar Pradesh Gramin Bank

4 Andhra Pragathi Grameena Bank

5 Jhabua- Dhar Kshetriya Gramin Bank

6 Madhya Bihar Gramin Bank

7 Pallavan Grama Bank

8 Pragathi Gramin Bank

9 Shreyas Gramin Bank

10 South Malabar Gramin Bank

11 Uttarakhand Gramin Bank

SCBS/DCCBS

1 The Kangra Central Cooperative Bank Ltd.

2 The Tamil Nadu State Apex Cooperative Bank Ltd.

Source: RBI

*Position as on September 1, 2014

Banks Having Permission to provide

Mobile Banking *


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process for joining card payment system. The membership

of this is open to banks as well as non-banking entities

authorized by RBI for PPI. NPCI has laid down detailed

guidelines, technical specifications, process and procedure

for membership and conduct of business. NPCI providesguidance and support to banks as and when they approach

NPCI for membership.

As on date, 68 banks and 8 non-banking entities are mem-

bers of IMPS. Annexure ‘III’ contains the detailed list of

the same.

Emerging Developments

a) Recommendations of Technical Committee of RBI

RBI had set up a Technical Committee of RBI on Mobile

Banking which submitted its report in January 2014. Thereport has suggested several steps to be taken to increase

mobile banking usage.

The committee has called for steps to be taken to –

• Simplify mobile registration process – to avoid visit

to branch

• Simplify and standardize M-PIN generation process

• Introduce One Time Password (OTP)

• Facilitate merchant payment using just mobile num-

ber and M-PIN/OTP on the merchant interface

• Train staff

• Educate and handhold customers

The committee has recommended banks to –

• Implement multiple channels – SMS, USSD, applica-

tion etc.

• Introduce encrypted SMS in application based mobile

banking

• Simplify P2P transfer – using mobile number and

account/Aadhaar number

• Facilitate use of a single or common USSD number/

SMS short/long codes/IVR number/mobile applica-tion across all banks.

• Increase limit of unsecured transaction (without end

to end encryption) from the existing Rs.5000/- to

Rs.10000/- subject to having certain velocity checks

at the bank side. Banks may take the decision as per

their security policy and internal risk management

control measures.

MNOs should provide mobile number from where the

banking transaction has originated.

The committee has submitted recommendation for each

type of Mobile Banking Solution as under:

i) Recommended solution for SMS based

mobile banking

• Use of common mobile banking application which will

enable the use of encrypted SMS messages for mobile

banking transactions

• Use of common mobile banking application preferably

using STK (SIM Application Tool Kit) applications for

mobile banking.

• Common application to be standard menu-driven and

interactive for use by all banks to avoid need for customer

to remember or know the SMS syntax.

• Consider adopting STK application which encapsu-lates and sends encrypted SMS to pre-defined number

- ensures end-to-end security, and can be used for trans-

actions of higher values.

• User not required to know the SMS short code or long

code number

ii) Recommendations for USSD based mobile banking

• Implementation of the TRAI regulations must be expe-

dited by all the stakeholders.

• Banks should tie up with MNOs to offer these services

directly to their customers

• Implementation of common USSD gateway for mobile

banking should be expedited which would help avoid

the need for each bank to tie-up with a large number of

MNOs

iii) Recommendations – Application based mobile

banking

• Common mobile application may be developed and dis-

tributed, having standard common menu containing the

minimum and most required transaction set.

Recently, RBI has permitted domestic leg of international

money transfer transactions to be processed through IMPS

platform. The banks and financial institutions engaged in

international remittances can now credit the beneficiary

accounts in India real time, if the remitting institution can

carry out Anti Money Laundering (AML) verification real

time.


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C. REGULATORY PROVISIONS

i) For Banks1. Mobile banking and Mobile banking transactions have

been defined by RBI as under:

a. Mobile banking - Use of mobile phones as “medium for

extending banking services”

b. ‘Mobile banking transaction’ - Undertaking banking

transactions using mobile phones by bank customers

that involve accessing/credit/debit to their accounts

2. RBI allows banks to offer mobile banking services.

3. Banks are required to obtain one time prior permission

from the Department of Payment & Settlement Systems,

Reserve Bank of India for starting mobile banking

4. The permission is granted subject to compliance with

the Regulatory & Supervisory Guidelines issued by RBI4

for carrying on the mobile banking services. The guide-

lines are applicable to all commercial banks (including

Regional Rural Banks), Urban Cooperative Banks, State

Cooperative Banks and District Central Cooperative

Banks.

5. For RRBs/DCCBs/UCBs, the RBI permission for mobile

banking is not necessary to on-board IMPS network

as beneficiary (inward remittances). The settlement for

these transactions will be done through sponsor bank’s

account.

6. RBI has issued master circular containing operative

guidelines for banks on mobile banking transactions.

Key provisions of the guidelines relating to regulatoryand supervisory issues are:

a. Banks, licensed, supervised and having physical pres-

ence in India, are permitted to offer mobile bank-

ing services. Only banks who have implemented core

banking solutions are permitted to provide mobile

banking services.

b. The services shall be restricted only to customers of

banks and/or holders of debit/credit cards issued as

per the extant Reserve Bank of India guidelines.

3 RBI Master Circular – Mobile Banking transactions in India – Operative Guidelines for Banks No.RBI/2014-15/104 DPSS.CO.PD.

Mobile Banking. No. 2/02.23.001/2014-15 dated July 1, 2014

c. Only Indian Rupee based domestic services shall beprovided. Use of mobile banking services for cross

border inward and outward transfers is strictly pro-

hibited. Recently, RBI has permitted processing of

domestic leg of international money transfer transac-

tions through IMPS platform.

d. Banks may also use the services of Business

Correspondent appointed in compliance with RBI

guidelines, for extending this facility to their custom-

ers.

e. Banks are permitted to offer mobile banking facility to

their customers without any daily cap for transactionsinvolving purchase of goods/services. However, banks

may put in place per transaction limit depending on

the bank’s own risk perception, with the approval of

its board.

f. Remittance of funds for disbursement in cash

i) Banks are permitted to provide fund transfer ser-

vices which facilitate transfer of funds from the

accounts of their customers for delivery in cash

to the recipients. The disbursal of funds to recip-

ients of such services can be facilitated at ATMs

or through any agent(s) appointed by the bank as

Business Correspondents. The recipient can be a

non-account holder also.

ii) In case of cash out, the maximum value of such

transfers shall be Rs 10,000/- per transaction.

Banks may place suitable cap on the velocity of

such transactions, subject to a maximum value of

Rs. 25,000/- per month, per beneficiary.

iii) The disbursal of funds at the agent/ATM shall be

permitted only after identification of the recipi-

ent. Banks are required to carry out proper duediligence of the persons before appointing them as

authorized agents for such services.

iv) Banks shall be responsible as principals for all the

acts of omission or commission of their agents.

g. Transactions up to Rs. 1000/- can be facilitated by

banks without end-to-end encryption. The risk aspects

involved in such transactions may be addressed by the

banks through adequate security measures.

h. The guidelines issued by the Reserve Bank on ‘Risks


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and Controls in Computers and Telecommunications’

vide circular DBS.CO.ITC.BC. 10/31.09.001/97-98

dated 4th February 1998 will apply mutatis mutandis

to mobile banking.i. The guidelines issued by the Reserve Bank on “Know

Your Customer (KYC)”, “Anti Money Laundering

(AML)” and “Combating the Financing of Terrorism

(CFT)” from time to time would be applicable to

mobile based banking services also.

j. Banks shall file Suspicious Transaction Report (STR)

to Financial Intelligence Unit – India (FIU-IND) for

mobile banking transactions as in the case of normal

banking transactions.

k. Besides aforesaid, the RBI Guidelines include provi-

sions in regard to:• Registration of customers for mobile service

• Technology and Security Standards

• Inter-operability

• Clearing and settlement for inter-bank funds trans-

fer transactions

• Customer complaints and grievance redressal mech-

anism

• Transaction limit

• Remittance of funds for disbursement in cash

• Board approval

ii) For Non-Bank Payment ServiceProviders

• RBI authorizes non-banking entities to operate as pay -

ment service providers under the PSS Act, 2007 for

setting up and operating payment system in India for

issuing stored value instruments (Pre-Paid Payment

Instruments) on mobile.

• Detailed Policy Guidelines are contained in RBI’sCircular No. RBI/2014-2015/105 PSS.CO.PD. PPI.No.

3/02.14.006/2014-15 dated July 1, 2014 (refer annexure).

Banks are advised to refer to circulars/notifications issued

by Reserve Bank of India from time to time to get the latest

status.


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D. IMPS MEMBERSHIP

GUIDELINES1. Both banks and PPIs to have mobile banking license

from RBI

2. Banks to comply with NPCI specifications

3. Banks to integrate IMPS services and related queries in

their Customer Service Support system

4. Banks to submit information to NPCI from time to time,

like:

a. Total no. of bank’s registered mobile banking & SMS

alerts customers.

b. The peak level mobile banking transactions volume in

terms of number and amount (in rupees) handled by

the bank’s switch on any particular day so far – both

intra-bank and inter-bank

c. Current System (HW/SW) sizing to handle peak num-

ber of transactions/day for mobile banking.

d. Current System (HW/SW) sizing to handle peak num-

ber of transactions per second for mobile banking.

e. Statistics relating to IMPS transactions


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E. RANGE OF SERVICES

The range of services being offered by the banks is very wide and varied. Listed below is the broad range of services:

i) By Banks

1. Services being offered include Bank Account related

activities like Funds Transfer / Instant Funds Transfer

(through IMPS/NEFT)/ Bill Payment / Balance Enquiry

/ Cheque Book Request / Last 5 Transactions / Stop

Cheque Request / Cheque Status Enquiry / Open a Fixed

Deposit / Open Recurring Deposit

2. Other add-ons like Credit Card, Demat, Loan, Mobile/

DTH Recharge, Movie/Air/Bus Ticket, etc.

3. Mobile Payment/Wallet Services - through tie-up with

service providers like m-Pesa, mRupee, Oxigen e-Paisa,

Aircel Mobile Money, Airtel Money etc.

4. Cash deposit/withdrawal facilities thru tie-up with BCs

– dedicated outlets/BC owned outlets. These BCs are

primarily of 2 kinds:

•Having their own BC outlets to cater to various bank -

ing/financial companies to sell their products and ser-

vices. These BCs are generally having their own mobile

based transaction software solution which is connected

to the CBS of the bank/s.

•Outlets dedicated to a particular bank, directly con-

nected to their CBS.

5. Many banks are offering multiple options, based on dif-

ferent mobile communication channels. For example

one large private sector bank offers a bouquet of follow-ing options:

• WAP based application compatible with the handset

having GPRS

•USSD based application which is available on all GSM

handsets

• SMS based application - available on all handsets

across all operators but with restricted functions and

amount limit specified by RBI due to insufficient secu-

rity of this communication channel.

• Call to pay services - IVR 5

mobile banking• ‘Smart Phone’ based mobile banking facility, offering

a wide variety of services, almost comparable to the

facilities available on Internet Banking.

ii) By Non-Banking Entities

1. Prepaid Payment Instrument (PPI) Issuers

These non-banking entities are authorized by RBI to offer

mobile wallet & payment services and they operate their

own mobile banking platform (Oxigen, PayMate, Airtel

Money, m-Pesa, mRupee, Aircel Mobile Money etc.). Theyare primarily engaged in payment/remittance services.

Some of them have also taken membership of IMPS.

In addition to their PPI business they may also operate

as BC of banks, managing services like account opening,

cash deposit, transfer to bank account (NEFT), IMPS

transfer, balance check, mini statement, airtime recharge,

DTH recharge, rail ticket booking and movie ticket book-

ing. They offer various types of products – some backed

by their own platform and others linked to a bank account.

For example, Airtel (MNO) offers:

• ‘Airtel Money’ which offers 3 different types of accounts –

‘Express’ Account, ‘Power’ Account and ‘Super’ Account.

• Out of these 3 types, ‘Power’ and ‘Super’ Accounts are

KYC verified accounts offered in partnership with banks.

• Cash withdrawal is available only on the Super Account

which is linked to bank account in Axis Bank

2. Other Non-Banking Entities

a. Some companies are not authorized for PPIs but operate

as BCs of banks, offering services like account opening,cash deposit/withdrawal, funds transfer, balance enqui-

ry etc.

b. Some of them operate dedicated outlets for the banks;

while others have their own independent outlets/BC

networks, providing financial products/services such

as mobile/DTH/toll Recharge, utility payments, insur-

ance, movie tickets etc., operating on their own mobile

based transaction software solution. Examples – Oxigen,

Sub-K, Eko etc.

5 IVR (Interactive Voice Response) is a technology that allows a computer to interact with humans through the use of voice and

DTMF tones input via keypad


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F. TECHNOLOGIES

Banks can use various technologies for mobile bankingservices. A brief description of the various modes is given

below:

1. SMS (Short Messaging Service)

a. Technology is available on all types of phones

b. Operates on normal SMS platform using both push and

pull messages

c. Easy to access but requires customer to remember syn-

tax for each activity

d. Cost of SMS borne by the customer (unless bank hasentered into any arrangement with the Mobile Network

Operator)

e. High Security concerns

2. IVR (Inter-active Voice Response)

a. Transaction is through inter-active voice navigation

b. Supported on all types of Mobile Phones

c. Not very convenient and time consuming as the cus-

tomer is required to dial up to get connected

d. Call charges applicable

e. Need of Back-up human support

3. USSD (Unstructured SupplementaryService Data)

a. Operates on ordinary GSM mobile phone (not available

on CDMA phones)

b. Menu driven form of SMS and hence easy to operate

c. NPCI has setup a common USSD Platform (NUUP)

for all banks instead of each bank having to develop itsown platform. It provides access to all MNOs on GSM

technology through a single integration with NPCI.

It provides mobile banking service on even ordinary

mobile phones as it does not involve downloading of any

application on the phone. It operates with One number

(*99#) for every customer to access – irrespective of thetelecom service provider, mobile handset make or the

region across India and can be used at BC/POS termi-

nals also. Currently 29 Banks have enrolled for this facil-

ity. The upper limit on transaction fee payable to MNOs

has been fixed at Rs.1.50 per transaction by TRAI.

Please see the following link for NUUP videos from NPCI:

English: http://www.youtube.com/watch?v=kycSxtDHJw

s&feature=youtu.be

Hindi: http://www.youtube.com/watch?v=iahZNkyydLs

4. WAP (Wireless Access Protocol)

a. Internet based service

b. Available on all GPRS enabled GSM/CDMA phones

c. Costly to end users as data and roaming charges may

apply

d. May require customization to suit different types of

mobiles

5. Mobile Applicationa. Require down loading mobile application of the bank on

the mobile phone of the customer

b. Require GPRS and compatible handset for the type of

application developed by the bank

c. Does not suit customers having ordinary mobiles and

those not having sufficient exposure to technology

6. STK (SIM Tool Kit) Based

This application is embedded on SIM Card. Transmissionof data can be either SMS or GPRS (data) channel. It can

be used by any customer, irrespective of handset and can be

standard menu-driven, interactive and user-friendly. RBI

has recommended for its introduction in India. Annexure

‘IV’ contains details about the technology.


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G. SELECTION OF MOBILEBANKING SOLUTION

Key factors in regard to selection of Mobile Banking

Solution are:

1. Business Plan - Customer Profile, Geographical seg-

ment, Product Offering

a. Is it Financial Inclusion or business development; or

both?

b. Which segment of Customers is to be targeted; urban,

rural/semi-urban, unbanked, educated only, upperlayer or all?

c. What products are to be offered – Cash/Non-cash, Self

Operated/Assisted, Other Services – Basic Banking/

Basic Banking + Recharge, Bill Payment etc?

d. If cash deposits/withdrawals cannot be serviced

through the bank branch would the bank like to set

up a BC network and/or Point of Sale (PoS) merchant

network (see RBI circular in annexure) as well?

e. How many customers are expected to be covered by

the mobile banking initiative? Will this base grow

annually? How many transactions are expected from

each customer annually? What types of transactions?

f. Which category(s) customers will be signed up for

mobile banking? Are they in a specific geographic area?

Are they in a certain income category? What areas will

the pilot cover and how will the initiative be scaled

across the bank? What bank infrastructure is currently

available to the target group?

g. What is the mobile network coverage across the

planned deployment areas? Is the signal strength

adequate? Are there frequent outages? What kindsof phones are normally used by the target customers?

What is their level of literacy?

2. Available Resources – IT Infrastructure, Human

Resources, Financial Resources

a. Own Data Centre or Hosted Data Centre or ASP?

b. Is the CBS connected to the NFS either directly or

through an ASP?

c. Whether sponsor bank can permit use of its own Mobile

Banking Switch (in case of RRBs in particular)?

d. Whether trained human resources are available to

manage switch, operations, customer service?

e. Financial strength to bear the capital expenditure

involved in acquiring switch, Micro-ATM etc?

3. Facility for Cash Deposit/Withdrawal Facility

through Mobile Banking

a. If the mobile banking customers are in the vicinity of

the branches of the bank, it may not be necessary to

look for any additional infrastructure

b. If the mobile banking customers are in remote areas, bank may consider PACS to provide this facility

(similar to merchants) through PoS connected to the

Mobile Banking Switch

4. Mobile Banking Technology

a. For Basic Banking Transactions - Balance Enquiry,

Latest Transaction List, Balance Transfer and for

Cash Deposit/Withdrawal:

i) SMS based Banking

• Not considered a very safe and convenient mode

as messages are stored, un-encrypted and message

format difficult to remember

• Can be suitable for small value transactions

• Operable on any handset and on all Mobile

Networks

• Banks to use their NPCI connectivity to route

other NPCI network linked banks’ accounts

ii) USSD based Banking

• Suitable only if the Mobile Network Operatorsin the area use GSM technology. Subscribers of

CDMA mobiles would not be able to avail the facil-

ity.

• Session based communication, relatively safe and

convenient mode of communication

• No Transaction Limit specified by RBI

• Operable only on GSM handsets and does not

require a “smart” phone

• Operable only on the GSM Mobile Networks oper-

ating in the area

• Banks to link to NUUP of NPCI to provide inter-

bank remittance facility


15/34


b. For Mobile Banking with value added services like

Mobile Recharge, Bills Payment, FD request etc.,

the banks opt for Mobile Application based solution.

These solutions require downloading of the Software

Application on the Mobile Phone and therefore only those customers would be able to avail these facilities

who have “smart” phones.

5. Mobile Banking Model

a. If the bank is operating its CBS and Card Payment

Switch on ASP Model, the mobile banking solution

should also be on ASP basis.

b. If the bank has CBS at its own Data Centre or on hosted

Data Centre but Card Payment Switch on ASP Model,

bank may explore both the options i.e. whether to have

mobile banking on hosted CBS or to engage ASP.c. If the bank has its own Data Centre and its own Card

Payment Switch, the bank may find it more beneficial

to acquire and manage the mobile banking switch.

6. Cost Estimates

a. Some of the cost heads apply to all models, like Annual

S.No. Cost Head Narration

1 Customization Charges Customization of Solution as per individual bank’s

requirements

2 Channel Support Charges Charges for providing BC services

3 Development of Additional Modules If modules are to be developed in addition to the

ones provided in standard product

4 Purchase of Devices Cost of POS Devices linked to Mobile Banking Switch

5 Connectivity with CBS Cost of connectivity Mobile Banking Solution to the

CBS

6 Connectivity with NPCI Cost of connecting to the IMPS

7 Connectivity to Merchants /

Aggregators / Gateways

Wherever applicable

8 Training Training to bank IT /Operating staff

9 Fixed Fees Upfront Fee for Installation of Mobile Banking Switch

10 Transaction Fees Applicable on ASP Model

11 Commissions and Revenue Share Applicable to BC Services Provider

12 Support Fees Annual Maintenance/Technical Support Fee

13 Telecom Fees Fee payable to Mobile Network Operator for

carrying the mobile communication

Technical Support, Training, and Connectivity to CBS

& IMPS etc. On the other hand, other costs will vary

upon model like cost of solution, transaction fee, pro-

viding BC services etc.

b. The cost of acquisition of mobile banking solutiondepends on a number of factors like type of solution,

volume of business, customization, existing CBS and

NPCI connectivity scenario, acquisition model (own-

ership or ASP) etc. At present mobile banking on ASP

being only at the evolving stage, the cost estimate can

only be bank and products specific. Even a ballpark

figure would be a wild guess work only. The illustra-

tive list of various cost heads is given below.

Aforesaid information will help the bank to take decisions

with regard to:- Selection of the target group and geographic areas

- Selection of the relevant mobile banking model

- Selection of the right mix of banking and non-banking

services

- Selection of the mobile banking solution

14 Switching Fee payable to NPCI As specified by NPCI from time to time. Currently

0.50 per successful transaction

15 Interchange Fee structure as below

(Payable by Remitter Bank to the Ben-

eficiary Bank)

Successful Transaction value upto

Rs. 25,000 Rs. 1. Successful Transaction value

Rs. 25,001 to Rs. 2 Lacs Rs. 5


16/34


H. SELECTION OF MOBILESOLUTION PROVIDER(S)

The Solution may be used for various financial inclusion

and mobile banking initiatives of the bank. Bank may use

it for BC operations as well. Therefore, the solution pro-

vider is expected to have products, services and capabili-

ties to provide an end-end comprehensive infrastructure

to implement mobile banking solutions and services for

the bank. The technology solution/platform is expected to

integrate with the bank’s core banking system and financial

switches, integrate with mobile network operators, andintegrate with various third party aggregators and service

providers for seamless connectivity.

Banks may consider following key criteria for selection of

the solution provider:

1. Core Functionality

a. Banking and Non-Banking Transactions – most of

the solutions/vendors support basic banking transac-

tions such as account openings, deposits, withdrawals,

balance enquiries and remittances/transfers. Equally

important is support/availability of non-banking trans-

actions. Though these services may not be immediately

needed, it will provide added value to customers later

and become a revenue source for the bank/BC agent.

b. Assisted and Self Transactions – availability of both

assisted transaction and self-transaction models.

c. Ownership and Hosted Models – the mobile banking

service provider must have the ability to offer the mobile

banking solution in both models – ownership and ASP –

to enable the evolving needs of the bank.d. Cash Dispensation Operations – some banking trans-

actions can be fully done by the customer using his/

her mobile phone, while other transactions will need

the assistance of an agent. This is especially the case

for cash based transactions. A merchant agent network

may be needed in remote areas to provide these assisted

services.

e. Integration and Standards – capabilities for integra-

tion with CBS, IMPS, UIDAI, other banks, switches,

merchants, aggregators and gateways etc., to ensure

seamless operations.

2. Technology Maturity

a. Multiple Service Delivery Channels – availability of

multiple service delivery channels (SMS, IVR, USSD,

and App etc.) to provide flexibility to bank to select suit-

able channel(s).

b. MNO Carrier Agnosticity - availability of services forcustomers through any mobile network operator.

c. Compatibility – ability and ease with which the solu-

tion can be linked with additional services, functionality,

channels and partners.

d. Scalability and Replicability – robustness of the tech-

nology architecture, scalability of the solution and the

ease of extending the solution to other participating

banks.

e. Hosted Model – support of both ownership and host-

ed/managed models for the mobile banking platform

solution. Flexibility to switch from hosted to ownership

model or vice versa.

3. Vendor’s Credentials

a. Product Roadmap – future product / services that will

be introduced by the mobile banking service provider.

b. Costing and Commercials – total cost of ownership for

the selected technology / service as well as the ability to

price based on usage.

c. Mobile Banking Service Provider Experience - priorimplementation and project experience by the mobile

banking service provider.

4. Illustrative List of Mobile SolutionProviders

Currently following Vendors are providing mobile bank-

ing solutions as per required specifications. There may

be several others also who might have appropriate solu-


17/34


tions. Some of these Vendors may be in a position to be

Application Service Providers. Banks should explore all

available options to select the appropriate Vendor:

a. Finacus

b. Sarvatra Technology c. Infrasoft Technologies

d. Financial Software and Systems (FSS)

e. C-Edge Technologies

f. FIS

g. Saraswat Infotech

h. Olive Crypto

i. Infosys

j. TCSk. Paymate

l. GI Tech

m. Euronet


18/34


I. PROJECT COST ESTIMATES

The total cost of the mobile banking technology solutioncan be categorized into following 3 broad areas –

a) Acquisition or initial set up costs to acquire the solu-

tion,

b) Commissioning costs to configure and connect the

solution to banking systems and payment switches and

gateways, and

c) Operating costs involved in transacting and supporting

day to day mobile banking transactions.

There are two primary models for implementing a mobile banking solution at the bank:

a. Ownership Model –

• The entire solution is purchased, owned, hosted (either

internally or through a 3rd party data center) and sup-

ported by the bank.

• The Setup cost may include customization cost, con-

nectivity to CBS/MPS etc.

• Additional cost may include training, roll-out support,

annual maintenance/technical support etc.

b. ASP (pay per use)Model –

• In this model, the Vendor /ASP owns the mobile solu-

tion which is hosted either at its own Data Central or at

a 3rd party Data Center.

• The bank does not incur any capital expenses and pays

the ASP an annual fee and/or transaction fees depend-

ing on usage.

• The bank may have to, however, incur the initial set-up

and connectivity costs.

• There may be a minimum threshold defined by the ASPfor number of transactions or customers.

• There may also be vendors offering revenue model.

• The Setup cost may include customization cost, con-

nectivity to CBS/MPS etc.

• Additional cost may include training, roll-out support,

annual maintenance/technical support etc.

Various cost components under different Cost Heads are

explained herein below:

1. Acquisition Cost

This is the cost incurred by the bank to acquire the mobile

banking solution, whether owned by the bank or not.Following are its sub-components:

a. Customization Charges

Charges are for customizing the Solution to have fea-

tures/functionality and a standard user interface (UI)

as per individual bank’s requirements.

b. Channel Support Charges

Some Vendors may not be supporting all technologies

(SMS, IVR, USSD, WAP and Apps.), and therefore may

charge a fee to induct such technology.

c. Development of Additional ModulesUsually, functionalities required by the bank are avail-

able in the Solution. In case there are unique require-

ments, the vendor may charge additional fees to develop

these additional functionalities. The fees is based on

actual time and effort to be expended by the vendor.

d. BC Outlet/POS/Mobile Devices

In case the bank opts for BC outlets or provides PoS or

Mobile Devices to Agents, these costs would be addi-

tional.

2. Commissioning Costs

One-time cost to cover configuration and connectivity to

other systems such as CBS, IMPS etc. It also includes the

installation of the solution and associated training to the

bank staff.

3. Operating Costs

The fees charged by the ASP (pay-per-use) model - per cus-

tomer or transaction. The fee may involve a fixed cost and a

variable cost (such as telecom charges). Some vendors may

also have an annual fee in-addition to a per-transaction fee.

4. Other Costs:

It includes the following items:

a. Lock-in Period

Along with the fixed fees or minimum guarantees, ven-

dors may also stipulate a lock-in period i.e. the contract

for a minimum number of years, or hold the rates valid

for a specified period.

b. Commissions and Revenue Share

Some vendors also stipulate sharing of a portion of com-

mission revenues for remittance/money transfer/mer-


19/34


chant transactions. Some vendors do not have a revenuesharing arrangement at all, and let the bank decide the

quantum of commissions to charge/receive.

c. Support Fees

Some vendors charge fee to provide technical support,

business transaction support, reversals, reconciliation

and other end of period processing support. Generally,

the vendors bundle these charges into the transaction

charges.

d. Telecom Fees

The telecom charges may be based on each transaction

or may be on actual basis. Some vendors bundle this with the transaction charges. Additionally, the leased

line charges for connectivity between the CBS and the

mobile banking solution are payable by the bank.

Total Cost of Ownership (TCO)

The total cost of ownership (over an appropriate number

of years, say 3 years or 5 years) of the solution based on var-

ious cost components explained above needs to be arrived

at to undertake comparative analysis of various solutions.

Following factors may impact total cost of ownership of

each solution:

1. Estimated volumes

2. Minimum guarantees

3. Revenue sharing4. Vendor’s capabilities in respect of connectivity to exter-

nal systems like CBS, IMPS etc.


20/34


J. OPERATING PLAN

a. Training & Support A well-defined training plan for all bank staff involved

covering topics such as product, technology, architecture,

transaction process, channels, reconciliation, settlement

etc. is required to be provided to the bank personnel who

are involved in day to day operations and support of the

mobile banking solution.

b. Process

User manuals, operating process, standard operating pro-

cedures, reconciliation and settlement etc., are required to

be defined and documented. The solution provider needsto provide detailed document depicting architecture, tech-

nical specifications and configuration etc. for various mod-

ules.

c. Support24 X 7 technical support for the software technology

implementation are to be provided by the solution pro-

vider. The support mechanism should be well defined and

documented with clear turn-around time lines.

d. Settlement

A well-defined settlement process and mechanism for

reversals and charge backs between the various stakehold-

ers such as BC, agents and interbank transactions should

be in place. The settlement cycle (end of day, weekly,

monthly) should also be well defined and documented.

e. Marketing & Customer Awareness

The bank may have to design a plan for creating customer

awareness and demand for the service through its branch

network and campaigns.


21/34


K. ROADMAP FOR IMPLEMENTATION

1. Seek internal approval from the Board for MobileBanking Facility to its customers, specifying the type of

arrangement

2. Secure IMPS membership for Inward Remittances (as

Beneficiary) for which there is no need for RBI approv-

al for RRBs/DCCBs and for installation of any Mobile

Banking Solution

3. Select appropriate Mobile Banking Solution

4. Tie-up with Mobile Banking Solution Provider on eitherownership basis or on ASP Model

5. Obtain Mobile Banking approval from RBI

6. Have the Mobile Application customized for their bank

7. Arrange linking of the CBS with the Mobile Banking

Switch

8. Seek Membership of IMPS – either Direct (if eligible

as explained earlier) or through sponsorship from a bank having membership of IMPS, complying with the

sponsoring bank’s requirements like opening of current

account, maintaining balance etc.

9. Apply to NPCI for membership of IMPS

10. Get the Mobile Numbers of their customers linked to

their respective account for the purpose of providing

Mobile Banking Services

11. Lay down operational guidelines including customersupport services

12. Complete end-to-end testing of the solution and Pilot

launch with select account holders

13. Have the CISA Audit done for the entire setup

14. Release to account holders upon successful Pilot launch


22/34


Mobile Banking Platform ASP

Bank Switch /

ASP /

Sponsor Bank Switch

NPCI NFS

Other BankSwitches

Bank CBS

Customer

Customer

Customer

BC Agent BC Agent

BC Network

MNO Gateway

Merchant Gateway

(Non-Banking)

ANNEXURE ‘I ’-Mobile Banking Transaction Process Flow under

different types of Models

Mobile Banking Process Flow

Ownership Model

BC Model

Bank ‘A’

Bank ‘B’

CBS of Bank ‘B’

Telecom Operator’s

Switch

IMPS

Bank ‘A’

CBS of Bank ‘A’

Mobile Banking in DCCBs


23/34


NUUP Based Mobile Banking Process F low

Bank ‘A’

Bank ‘B’ CBS

Bank ‘A’ CBS

Telecom

BAnk ‘B’

Bank ‘A’

NUUP

IMPS


24/34


ANNEXURE ‘II ’-List of Non-Banking Entities authorized by RBI

for Pre Paid Payment Instruments(Source: RBI Notification dated August 4, 2014 regarding Certificates of Authorization issued by the Reserve Bank of India under the Payment and Settlement

systems Act, 2007 for Setting up and Operating Payment System in India)

Pre-paid Payment Instruments

1 Airtel M Commerce

Services Ltd.

The Chief Executive Ofcer; Airtel M Commerce Services Ltd.

Airtel Center, Plot No. 16, 6th Floor, Udyog Vihar, Phase -4,

Gurgaon Haryana – 122001.

Pre-paid payment

instruments known as

Stored Value Card Wallet

(SCW)

30.06.2010

(Valid upto 29.06.2015)

2 Atom TechnologiesLimited

The Chief Executive Ofcer; Atom Technologies Limited, 4thFloor FT Towers, CTS 256 & 257, Suren Road, Chakala, Andheri

(E),Mumbai-400093.

Pre-paid paymentinstruments

30.06.2010(Valid upto 30.09.2014)

3 Citrus Payment Solutions

Pvt. Ltd.

The Chief Executive Ofcer, Citrus Payment solutions Pvt. Ltd.,

302, Swati Building, North Avenue Road, Off Linking Road,

Santa Cruz West, Mumbai 400 054

Pre-paid payment


‘Citrus Virtual Wallet’

18.10.2013

(Valid upto 18.10.2018)

4 DigitSecure India Private

Limited

The Chief Executive Ofcer, DigitSecure India Private Limited,

Plot No: 1303 and 1304, 4th Floor, Khanamet, Hitech City,

Ayappa Society, Madhapur, Hyderabad - 500 081.

Pre-paid payment


‘HotRemit’

23.07.2012

(Valid upto 22.01.2015)

5 Edenred (India) Private

Limited – nee Accor

Services Pvt. Ltd.

The Managing Director & Chief Executive Ofcer, Edenred

(India) Private Ltd; Camera House, Majiwade Village Road

Majiwade, Thane (W) 400 601.

Meal vouchers and gift

vouchers in the form of

‘paper vouchers’

29.10.2009

(Valid upto 31.10.2014)

6 GI Technology Private

Limited

The Director, GI Technology Private Limited, C-9, Thiru-Vi-Ka

Industrial Estate- Guindy, Chennai – 600 032

Pre-paid payment

instruments known as ‘I

Cash Card (ICC)’

29.10.2009

(Valid upto 31.10.2018)

7 Idea Mobile Commerce

Services Ltd.

The Chief Executive ofcer, Idea Mobile Commerce Services

Ltd., 5th Floor, “Windsor”, Off C.S.T. Road, Kalina, Santacruz

(East), Mumbai 400 098

Pre-paid payment

instruments

25.11.2013

(Valid upto 24.11.2018)

8 India Transact Services

Limited,

The Chief Executive Ofcer, India Transact Services Limited,

ITSL, 14th Floor, Tower 3, Indiabulls Finance Center, S. B. Marg

Elphinstone Road (W) Mumbai 400 013

Pre-paid payment

instruments

30.05.2014

(Valid upto 31.05.2019)

9 Itz Cash Card Ltd. The Chief Executive Ofcer, Itz Cash Card Limited, Top 14th

oor, Times Tower, Kamala City, Senapati Bapat Marg, Lower

Parel, Mumbai 400 013

Pre-paid payment

instruments

25.08.2009

(Valid upto 24.08.2015)

10 MMP Mobi Wallet

Payment Systems Limited

The Chief Executive Ofcer, MMP Mobi Wallet Payment Systems

Ltd.; A, E& F Blocks Voltas Premises, T B Kadam Marg,

Chinchpokli, Mumbai 400 033

Pre-paid payment


‘mRupee’

30.12.2011

(Valid upto 31.12.2015)

11 Mobile Commerce

Solutions Limited

The Chief Executive Ofcer, Mobile Commerce Solutions

Limited, Peninsula Corporate Park, Ganpat Rao Kadam Marg,

Lower Parel, Mumbai 400 013

Pre-paid payment

instruments

08.11.2012

(Valid upto 07.11.2014)

12 Mpurse Services Pvt. Ltd. The Chief Executive Ofcer, Plot No 38, Sector 32 Institutional

Area, Opposite Medanta Medicity Hospital, Gurgaon 122 001

Pre-paid payment

instruments

30.06.2014

(Valid upto 30.06.2019)

13 Muthoot Vehicle & Asset

Finance Ltd.

The Managing Director, Muthoot Vehicle & Asset Finance Ltd.

1st Floor, Cochin Dental Clinic Bldg. Market Road, Towards

Kombara, Kochi 682 014

Pre-paid payment

instruments only

29.10.2009

(Valid upto 31.12.2018)

14 My Mobile Payments

Limited

The Chief Executive Ofcer, My Mobile Payments Limited, 7th

Floor, MET Complex, Opp. Lilavati Hospital, Bandra – West,

Mumbai 400 050

Pre-paid payment


‘Money-on-Mobile’

24.10.2011

(Valid upto 31.10.2018)


25/34


Pre-paid Payment Instruments

15 One97 Communications

Ltd.

The Chief Executive Ofcer, One97 Communications Ltd., B-

121, Sector 5, Noida, 201 301 Uttar Pradesh

Mobile based Pre-paid

payment instruments (M-

Wallet)

07.08.2013

(Valid upto 06.08.2018)

16 One Mobikwik Systems

Private Limited

The Chief Executive Ofcer, One Mobikwik Systems Pvt. Limited,

758, 1st Floor, Udyog Vihar, Phase - V, Gurgaon-122 016

Haryana

Prepaid Payment

Instruments known as

‘Mobikwik Wallet’

18.07.2013

(Valid upto 17.07.2018)

17 Oxigen Services (India)

Pvt. Ltd.

The Group President, Oxigen Services (India) Pvt. Ltd.; 257,

Udyog Vihar, Phase-1, Gurgaon 122 016 Haryana.

Pre-paid payment


‘Oxigen Wallets’

18.01.2010

(Valid upto 31.12.2018)

18 PayMate India Pvt.

Limited

The Managing Director and CEO PayMate India Pvt. Limited,

111, 1st Floor, A- Wing, Sundervilla, SV Road, Santacruz (W),

Mumbai 400 054

Pre-paid payment


“Paymate Wallet”

28.04.2010

(Valid upto 30.04.2016)

19 Pay Point India Network

Private Limited

The Chief Executive Ofcer, Pay Point India Network Private

Limited, 2nd oor, Sushil Building, Kamala Nehru Compound,

Cross Road No. 1, Kandivali (W) Mumbai 400 067

Pre-paid payment

instruments known as ‘

Pay Pointz ‘

03.04.2012

(Valid upto 02.10.2014)

20 Pyro TelecommunicationsLtd.

The Chief Executive Ofcer, Pyro Telecommunications Ltd.,8-2-293/82, Plot No. 264/A-31, Road # 92, Jubilee Hills,

Hyderabad-500033 Andhra Pradesh

Pre-paid paymentinstruments

30.01.2014(Valid upto 31.03.2019)

21 QwikCilver Solutions Pvt.

Ltd.

The Chief Executive Ofcer, QwikCilver Solutions Pvt. Ltd.,

#104, 1st Main, Vijay Jatti Building, 3rd Floor, 5th Block,

Kormangla Industrial Estate, Bangalore 560095.

Pre-paid payment

instruments

06.08.2013

22 Reliance Payment

Solution Limited

The Chief Executive Ofcer, Reliance Payment Solution Limited,

5th Floor, Court House, Lokmanya Tilak Marg, Dhobi Talao,

Mumbai 400 002

Pre-paid payment


‘Jio Money’

18.09.2013

(Valid upto 17.09.2018)

23 Smart Payment Solutions

Pvt. Ltd.

The Chief Executive Ofcer, Smart Payment Solutions Pvt. Ltd.

6/35, WEA Karol Bagh, New Delhi 110 005.

Pre-paid payment


‘PayCash’

30.06.2010

(Valid upto 31.12.2018)

24 Sodexo SVC India Pvt. Ltd The Chief Executive Ofcer, Sodexo SVC India Pvt. Ltd., Nesco

Complex, Gate No. 3, Indabrator Building, Western Express

Highway Goregaon (East); Mumbai 400063.

Meal vouchers and gift

vouchers in the form of

‘paper based vouchers’

and ‘Smartcard’ or

‘Smart Meal Card’

25.08.2009

25 Tech Mahindra Limited The Chief Executive Ofcer, Tech Mahindra Limited, A- 20,

Sector 60, Noida 201 301

Pre-paid payment

instruments (m-wallet)

known as ‘MoboMoney’

19.09.2013

(Valid upto 18.09.2018)

26 Transaction Analysts

(India) Private Ltd.

The Chief Executive Ofcer, Transaction Analysts (India) Private

Limited, 59, 3rd Cross, 17th Main, BTM Layout, Bangalore 560

068

Pre-paid payment

instruments

07.03.2014

(Valid upto 31.03.2019)

27 UAE Exchange &

Financial Services Ltd.

The Country Head- India, UAE Exchange & Financial Services

Ltd., Third Floor, Airline Building Opp. Maharaja college Ground,

M G Road, Kochi 682 011.

Pre-paid payment


‘Silver Card’ and ‘Gold

Card’

29.10.2009

(Valid upto 31.10.2014)

28 UTI Infrastructure

Technology and Services

Ltd.

The Chief Executive Ofcer, UTI Tower, Plot No. 3, Sector 11,

CBD Belapur, Navi Mumbai-400 614

Pre-paid payment

instruments known

as National Common

Mobility Card (NCMC)

21.03.2014

(Valid upto 31.03.2019)

29 Y-Cash Software

Solutions Private Limited

The Chief Executive Ofcer, Y-Cash Software Solutions Private

Limited, VGR Essor, 3rd Floor, No 1140, 17th Cross, 7th Sector,

H.S.R. Layout, Bangalore 560 102 Karnataka

Pre-paid payment


‘Y-PayCash’

15.03.2012

(Valid upto 14.03.2016)

30 ZipCash Card Services

Pvt. Ltd.

The Director, ZipCash Card Services Pvt. Ltd., 25E/4 Model

Town, Bal Rajeshwar Road, Mulund (West) Mumbai 400 080

Pre-paid payment


‘ZipCash Coupons’

29.10.2009

(Valid upto 31.10.2018)


26/34


ANNEXURE ‘III ’-List of IMPS MembersSource: NPCI Website as on September 16, 2014

S. No. Bank NameNo. of MMID issued

(in lakhs)

IMPS Remittance IMPS

Merchant

Payment

National Unifed

USSD Platform

(NUUP)Using MMID (P2P) Using Account No. &

IFS Code (P2A)

Active Channels

1 Allahabad Bank 0.21 √ Mobile √

2 Andhra Bank 9.44 √ √ Mobile/ ATM √ √

3 Axis Bank 90.51 √ √ Mobile/Internet √

4 Bank of Baroda 2.34 √ √ Mobile/Internet √ √

5 Bank of India 11.25 √ √ Mobile √

6 Bank of Maharashtra 0.04 √ Mobile

7 Bassein Catholic Co-

op Bank

0.03 √ √ Mobile/Internet √

8 BNP Paribas 0* √ √ Mobile √

9 Canara Bank 4.89 √ √ Mobile/ATM/Internet √ √

10 Catholic Syrian Bank 0.10 √ Mobile

11 Central Bank of India 0.13 √ √ Mobile/Internet √

12 Citibank 3.09 √ √ Mobile/Internet

13 Corporation Bank 12.52 √ √ Mobile/Internet √ √

14 Cosmos Co-operativeBank

0.08 √ √ Mobile √

15 Dena Bank 0* √ √ Mobile √

16 Development Bank of

Singapore

0* √ Mobile √

17 Development Credit

Bank

0.59 √ √ Mobile

18 Dhanalakshmi Bank 6.26 √ Mobile

19 Dombivli Nagarik

Sahakari Bank

0.24 √ √ Mobile √

20 Gopinath Patil Parsik

Janata Sahakari

Bank

0* √ √ Mobile

21 Federal Bank 0.92 √ √ Mobile/ Internet √ √

22 HDFC Bank 4.36 √ √ Mobile/ Internet √

23 HSBC 0* √ √ Mobile/Internet √

24 ICICI Bank 204.15 √ √ Mobile/Internet √ √

25 IDBI Bank 0.06 √ √ Mobile √

26 Indian Bank 44.98 √ √ Mobile/ Internet √


27/34



(in lakhs)


Merchant

Payment

National Unifed

USSD Platform


IFS Code (P2A)

Active Channels

27 Indian Overseas

Bank

7.66 √ Mobile

28 Indusind Bank 0.61 √ √ Mobile/ATM/Internet √

29 ING Vysya Bank 0.08 √ √ Mobile/Internet √

30 Jammu & Kashmir

Bank

0* √ √ Mobile √

31 Janise Sahakari

Bank

0* √ Mobile

32 Janata Sahakari

Bank, Pane

0.03 √ √ Mobile √

33 Kallappanna

AwadeIchalkaranji

Janata Sahakari

Bank

0* √ Mobile

34 Karnataka Bank 29.81 √ Mobile √

35 Karur Vysya Bank 0.29 √ √ Mobile/ Internet √ √

36 Kotak Mahindra Bank 33.90 √ √ Mobile/ Internet √ √

37 Lakshmi Vilas Bank 6.89 √ Mobile/ ATM

38 Mehsana Urban Co-

operative Bank

0.01 √ √ Mobile √

39 Nainital Bank 0* √ √ Mobile

40 NKGSB Co-operative

Bank

0.05 √ √ Mobile

41 Oriental Bank of

Commerce

19.55 √ √ Mobile √ √

42 Punjab and

Maharashtra Co-op

Bank

0.47 √ √ Mobile √

43 Punjab and Sind

Bank

0.06 √ √ Mobile

44 Punjab National

Bank

3.99 √ √ Mobile/ATM/Internet √ √

45 Ratnakar Bank 0* √ Internet

46 Saraswat Bank 0.18 √ √ Mobile √

47 South Indian Bank 3.22 √ √ Mobile

48 Standard Chartered

Bank

0* Mobile √

49 State Bank of

Bikaner and Jaipur

0.22 √ √ Mobile √ √

50 State Bank of

Hyderabad

0.32 √ √ Mobile √ √

51 State Bank of India 64.29 √ √ Mobile/Internet √ √


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(in lakhs)


Merchant

Payment

National Unifed

USSD Platform


IFS Code (P2A)

Active Channels

52 State Bank of

Mysore

0.04 √ √ Mobile √ √

53 State Bank of Patiala 0.08 √ √ Mobile √ √

54 State Bank of

Travancore

0.19 √ √ Mobile √ √

55 Syndicate Bank 0.41 √ √ Mobile √

56 Tamilnad Mercantile

Bank

0.20 √ √ Mobile

57 Thane Janata

Sahakari Bank

1.83 √ √ Mobile

58 The A.P Mahesh

Urban Co-op Bank

0.02 √ √ Mobile √

59 The Greater Bombay

Co-op Bank

0.54 √ √ Mobile √

60 UCO Bank 0.56 √ √ Mobile/Internet √

61 Union Bank Of India 17.02 √ √ Mobile/ATM/Internet √ √

62 United Bank Of India 0.39 √ √ Mobile √ √

63 Vijaya Bank 0.42 √ √ Mobile √

64 Yes Bank Ltd 9.67 √ √ Mobile/ Internet √

Sr. No. RRB/DCB/UCB

No. of MMID

issued (in

lakhs)

IMPS Remittance

IMPS

Merchant

Payment

National

Unifed USSD

Platform

(NUUP)

Using

MMID(P2P)

Using

Account

No. & IFS

Code(P2A)

Active Channels

1 Pandharpur Merchant Co-operative Bank 0* √ √ Not applicable (#)

2 Kashi Gomti Samyut Grameen Bank 0* √ Not applicable (#)

3 Gayatri Co-operative Urban Bank 0* √ Mobile

4 Maharashtra Grameen Bank 0* √ Not applicable (#)

# As beneficiary

0* No. of MMID issued lesser than 1000.


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Sr. No.Prepaid Payments Instrument

Issuer (PPI)

No of Subscribed Users

(in lakhs)

IMPS Remittance

MPS

Merchant

Payment

National Unifed

USSD Platform

(NUUP)

Using

MMID(P2P)

Using

Account

No. & IFS

Code(P2A)

Active Channels

1 Airtel Mcommerce Services √ Mobile (Dial*400#)

2 GI Technology 11.86 √ √ Mobile/ Internet

3 ITZ Cash Card 1.81 √ √ Mobile/Internet

4 MMP Mobi Wallet Payment

Systems Ltd. (mRupee)

√ Internet

5 Mobile Commerce Solutions

(M-Pesa)

√ Mobile (Dial*400#)

6 Muthoot Vehicle and Asset

Finance Ltd

√ √ Internet

7 Oxigen Services 18.12 √ √ Mobile/ Internet8 U E Exchange and Financial

Services

1.31 √ √ Mobile/Internet


30/34


ANNEXURE ‘IV’-STK Application on Operator SIM

This application can be embedded on operator SIM and

can be distributed to customers by the MNOs. Keys neces-

sary for encryption are stored in the SIM. Transmission

of data can be either SMS or GPRS (data) channel. STK

application on operator SIM can be used by any custom-

er, irrespective of handset. The STK application can be

standard menu-driven, interactive and user-friendly. This

technology is not yet in use in India.

The technology has following advantages:• Supports all standard phones and SIMs

• Secure SMS and data communication channels usage

• Customers, merchants, BC agents of any bank can trans-

act through this interface.

Following challenges need to be addressed to adopt this

technology:

• For the existing SIMs, the MNO needs to support the

dynamic STK so that the application can be downloaded

over the air (OTA) which is technically feasible but may

be difficult for the older version of the SIM’s.

• The SIM cards (particularly the older ones) need to haverequired space to store this application.


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ABBREVIATIONS

AML Anti-Money Laundering

BC Business Correspondent

ASP Application Service Provider

CBS CORE Banking Solution

CDMA Code Division Multiple Access

GPRS General Packet Radio Service

GSM Global System for Mobile

Hosted Solution Software as a Service (SaaS) solution

IDS Intruder Detection System

IMPS Immediate Payment System

IRDA Infrared Data Association

ISO International Standards Organization

IVR Interactive voice response (IVR) is a technology that allows a computer to interact withhumans through the use of voice and DTMF tones input via keypad

KYC Know Your Customer

MMID Mobile Money Identication Number (MMID)

MNO Mobile Network Operator

mPIN Mobile Personal Identication Number

MPFI Mobile Payment Forum of India

M-Wallet Mobile Wallet

NEFT National Electronic Funds Transfer

NFC Near Field communication

NPCI National Payment Corporation of India Ltd.

NUUP National Unied USSD Platform

OTP One Time Password

PCI-DSS Payment Card Industry Data Security Standard

PIN Personal Identication Number

PPI Pre-Paid Payment Instrument

RFID Radio Frequency Identication

RTGS Real Time Gross Settlement

SIM Subscriber Identity Module

SMS Short Messaging Service

TRAI Telecom Regulatory Authority of India

USSD Unstructured Supplementary Service DataWAP Wireless Application Protocol


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Deutsche Gesellschaft für Internationale

Zusammenarbeit (GIZ) GmbH

GIZ NABARD Rural Financial Institutions Programme

A-2/18, 4th Floor,

Safdarjung Enclave,New Delhi 110 029

INDIA

Phone: +91-11-4949 5353

Telefax: +91-11-4949 5393

Email: [email protected]

Documents

Mbanking Handbook Final Mail