Agent Network and Cash Management

Partnerships against Poverty Summit, Manila

October 9-11, 2013

Raj Singh-Khaira VP-Fino Paytech Limited

2

Zone Head

State Head

Cluster Head

District Coordinator (handles ~12 BCs)

Block Coordinator (handles ~12 Agents)

Agent(services

~750

customers)

Agent Network

3

Snapshot of our largest geography for

cash disbursement

1,161

4,173 3,987

2,148

1,263

193

832

1,456

720 569

336

1,355

Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13

Disbursement (Rs. Mio)

• Total Disbursement in our

largest geography for FY 12-

13 was ~Rs. 18,192 Mio with

• Peak months touching ~Rs.

4,173 Mio.

• Agents cash in hand in

range of Rs. 0.2 Mio to 1

Mio

4

Cash management philosophy

• Centralized fund flow is monitored i.e. all fund flow starts from HO (Mumbai) and is controlled & monitored from here:

– Cash exposure for Agent/BC (Block Co-ordinator) /DC (District Co-ordinator) is controlled by having set cash limits for each at any given time.

– Agent Cash in Hand (CIH) is monitored via MIS from the field and is validated against auto generated reports (CMS dashboard).

– Periodic reconciliation is conducted with frequencies varying from 1 week to a month.

– Regular Cash/Transaction holidays ensure system hygiene as Cash reported by the field during the cash holiday equals Cash in Bank.

• All of the above are further re-enforced by Cash in Transit and Fidelity Insurance

5

CMS framework

• Net cash with Agent

• Net cash = Total Deposits – Total Withdrawals

If the deposits are more than withdrawals, this means FINO’s

money is with Agent.

Since Agent is holding FINO cash with him, his outstanding amount

will be displayed as negative balance.

If the withdrawals are more than deposits, this means Agent is

paying out to the customers.

FINO is liable for the withdrawals given by the Agent, his

outstanding amount will be displayed as positive balance.

6

CMS framework Accounting Entries

Debit Credit

FI (Financial Inclusion)

Customer Credit/ cash deposit

Agent / Member

A/c

Customer Liability

A/c

Agent to BC Transfer BC Agent

BC Cash deposit to Bank Bank A/c

Agent / Member

A/c

EBT (Electronic Benefit Transfer)

E-Pay Fund received Bank A/c

Incoming Control

A/C

E-Pay uploaded in FTS

Incoming Control

A/C

Customer Liability

A/c

Daily Fund Transfer for Disbursment

Agent / Member

A/c Bank A/c

Daily disbursement

Customer Liability

A/c

Agent / Member

A/c

Cash Deposit the bank account by

agent Bank A/c

Agent / Member

A/c

7

Payment Cycle

For projects,

government provides

beneficiary list

E-Pay Order is

received by

Central

Operations Team

Finance Operations confirms

the physical receipt of Funds

to FFF (FINO Fintech

Foundation) account

Funds transferred

to DC/ BC

Funds received

by Agent

E-Pay Order is uploaded by

Transaction Team basis URN

of customer and mapped

Agent’s TID

Field POT

Device

EDPS /

TDPS

BODEOD

BOD downloads

the credit balance

to update the

customer account

balance

EOD uploads the

transactions done

on field through

POT Devices to

reflect in customer

account

CMS team verifies the cash in hand

with the BC/DC/Agent to whom the

funds are to be remitted

Basis the existing cash in hand &

the limits of the BC/DC/Agent,

calculates the fund transfer amount

Daily Funds movement

between the DC/BC/Agent is

monitored basis the Cash

movement tracker

Actual Agent disbursment is

monitored through the CMS

dashboard reflecting the CIH with

the Agent.

In case of exceptions if the Agent

pays the beneficiary without

performing txn, the same is

marked in the acquaintance

sheet & later txn is processed

Cash Remitted/E-pay Order = Disbursement + CBM + MM + CIH + CIB

8

Monitoring Cash handovers

Cash Movement Report is to monitor the cash exchange in the field. This helps DC to track daily cash movement between DC, BC & Agent. The DC can also monitor the frequency at which the BC is meeting his Agent.

Positive balance under the BC heading indicates that the BC has handed over cash to the Agent. 4th May 2011 BC GAJANAN KABIR Handover cash amounting to Rs. 290974 to Agent(TID 10461301)

In above report Agent Collected cash form BC for disbursement , so his balance reflects as –ve Cash.

Negative balance under the BC heading indicates that the BC has handed over cash to the Agent.4th May 2011 BC GAJANAN KABIR reconciled the manual payments details amounting to Rs. 290974 to Agent(TID 10461301)

In above report Agent provided details of manual disbursement, so his balance reflects as +ve Cash.

9

Monitoring daily CIH

CMS Dashboard enables the HO to monitor daily Cash in Hand of the Agent /BC & DC. This data is used by

Central Team & field Team to check & monitor the daily cash position. POT Settlement details are also

availed in this report . This is basically net float report.

Cash In hand with Agent in below report -3133

10

Transaction Holiday

• Transaction Holidays – Conducted once a month in all

transacting Districts:

• At an agreed time and date all pots are locked from doing

any transactions.

• Field deposits all Agent/BC/DC cash into the FFF pool

account – verified by Operational Finance Team.

• Backend Recon team generates a report tally up the FTS &

customer card balances.

• Pots are unlocked to commence transactions.

Thank you