260 172826/2018/SO(COMPUTER CELL) File No.21(8)/2016-Comp
No.21(8)/2016-Comp. Cell Government of India Ministries of Consumer Affairs,Food & Public Distribution Department of Food & Public Distribution ******** Krishi Bhavan, New Delhi Dated 11Th May, 2018 To Secretary/Principal Secretary, Department of Food & Civil Supplies, All States fUTs.
Subject:-Publicizing of MDR waiver and revised BHIM incentive Schemes-reg.
Madam/Sir, Please find enclose herewith a copy of D.O.letter No.12(23)/2017-DPD dated 26.4.2018 received from Ministry of Electronics and Information Technology (MeitY) on the subject mentioned above. As per information, GOI vide Gazette Notification No.6(19)/2017-DPD-1 dated 27.12.2017 has waived off Merchant Discount Rate (MDR) applicable on Debit Card/BHIM UPI/ Aadhaar-Pay transactions less than or equal to Rs. 2000/- in value for a period of two years with effect from 1st January, 2018. In the matter this Department has already written to all States/U'Is for adoption/promote digital transactions in PDS vide D.O. letter of even number dated 13/03/2018 (attached). It has further intimated by MeitY that GOIhas recently revised and extended the following incentive schemes w.eJ. 1st April, 2018 till 31st March, 2019 for promotion and wider adoption of digital payment:-
(i) BHIM cashback scheme for individuals. (ii) BHIM incentive scheme for merchants. (iii) BHIM Aadhhar merchant incentive scheme.
2. It is requested that waiver of MDR charges and revised BHIM incentivization schemes may be disseminated and widely publicized in your State/U'I' through States PDS portal to promote and adoption of digital cashless transactions.
Yours faithfully, Signature valid ~ Digitallysignedby 01NESHKU R. PTA Date: 2018_05 11 10:18:45 1ST _._ Reason Approved (D.K.Gupta) Director (PD) Tel. NO.23070429
Copy to: - DDG, NIC, CGO complex, New Delhi with request to display the above information in the Departmental website as well as annavitran portal. 261 172826/2018/SO(COMPUTER CELL)
Gopalakrishnan S., lAS Joint Secretary ~/Tele: Tel.:24363075 a:r."'" '13"'" Email:[email protected] D.O.No .•...... N.o_.l..2(23J/20 17-DPD
Sub.: Publicizing of MDRWaiver and revised BHIMincentive schemes
Sir/Madam,
Ministry of Electronics & IT (MeitY)has been mandated to promote digital transactions in the country. MeitYhas been co-coordinating with all the Ministries / Departments / States to achieve the target of 2500 Crore digital payment transaction, set for FY2017-18, by Hon'ble Finance Minister.
2. The efforts made by all Ministries/Departments/States for promotion of digital ~ ,...tl payments are appreciated, which resulted in significant growth in digital payment ~''''' ':» transactions from 1003 Cr. in 2016-17 to 2060 Cr. in 2017-18. The details of mode• Y' \I ~\(wise growthin digital payments have been enclosed as AnnexureA.
3. MeitYis now working with renewed focus to further strengthen the digital payment ecosystem in the country. Recently, Government of India Vide Gazette Notification No. 6(19)/2017-DPD-1. dated 27.12.2017 (attached) has waived off Merchant Discount Rate (MDR)applicable on Debit Card/BHIM UPI/Aadhaar-Pay transactions less than or equal to Rs. 2000/- in value for a period of two years with effectfrom 1st January, 2018. This will help to promote small value transactions upto Rs.2000/-.
4. Further, Government of India has recently revised and extended the following incentive schemes with effect from 1st April 2018 till 31st March 2019 for promotion and wider adoption ofdigital payment.
• BHIMcashback scheme for individuals • BHIMincentive scheme for merchants • BHIMAadhaar merchant incentive scheme
tJPowerTO~ Dig;toIlndioEmpower 262 172826/2018/SO(COMPUTER CELL)
5. Co-operation of all Ministries/Departments/States is expected to further improve the adoption of Digital Payments. It is requested that information regarding MDR waiver and BHIM incentive schemes, as mentioned above may be disseminated and widely publicized in all organizations (Attached Offices/ Affiliated bodies/ Autonomous Societies/Public Sector Enterprises/ Section 8 companies/ Section 25 companies/ Statutory Organizations/ Company registered under Company Act 1956 etc.) under your Ministry / Department / States. It is further requested to appropriately display the above information in websites of your Ministry / Department / States and all concerned organizations.
With regards,
Yours faithfully,
~ (Gopalakrishnan S.t
Encl.: As above
To:
• All Secretaries, Government of India • Chief Secretaries of all States/UTs
Copy To:
• IT Secretaries of all States/UTs 263 172826/2018/SO(COMPUTER CELL)
Annexure A: Growth of Digital Transactions in Last Five Years
Modes/Year Growth Units rate Source
Note:
1. *Above mentioned modes are included in Digital Payment 2. Cash / Cheque / Demand Draft (DO) are not considered as Digital mode of payment. 264 172826/2018/SO(COMPUTER CELL) .f
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3. ~ ~ ~ ~ if, 0 4. \jjq ~ m/~ ~~/3lT&n:-~ ~ ~eNff1R4 if ~ ~ cft"~ l1l1fR 36 GII2018 (I) .. 265 172826/2018/SO(COMPUTER CELL) 2 THE GAZETTE OF INDIA: EXTRAORDINARY [PARTI-SEC. 1] 5. am:itani ~ 6 ~, 2017 ~ ~ m~ ~~ ~ ~am::fT: "ff1li'Tfita"~ 8'1: ~ f.'RliT ;;niT~~-;;iT01.01.2018it~Wm~"$1~~~~~~~am: "it SltdiRld eFt~~ I 6. mcfiR IDU ~ f.tuP:r Am IT i. 1~, 2018 it 2000 ~ iv. ~ 6.12.2017 ~ am:itani ~ f.'RlIl"l"'jflT'l ifi'll'l"11¥11if ~"@"g f!fAiPid Wrrr ~ fcf; ~ ml'lfl+T 'rfiani/3lTW"'l-it ~ ~ ~ ~ ~ ~ B"l14" OlflQlR41 IDU ~am: W9' 'fiT oTrn m¢'1'l rr@'~ ~I v. ~~~~~~~~~if~~mif~~~WmI vi. itir mif ~ m~ ~ Sll"llolQ>;j~ Wm fcf; "11,llifidT~ 3ih: m ~ ~ q-.: GI"ifiT4T ~ m:rr'l ~ rn 'fiT~: ~ 'fi"'( ~ IT [\WT I-"l9[1JG 1] 3 xii. t1<1I~"'1( m 7. ~ iT~ ~~'flT ~~ fcf; MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY NOTIFICATION New Delhi, the 27th December, 2017 Subject: Subsidizing MDR charges on Debit Cards/BHIM UPIIAePS transactions of value less than or equal to Rs. 2000/-. No. 6(19)/2017-DPD-1.- 1) The Digital India Programme envisions transforming India into a digitally empowered society and knowledge economy by making available digital infrastructure, digital governance and digital services to every citizen. Promotion of digital payments ecosystem is an essential aspect of the Digital India programme and has the potential to transform India's economy and extend inclusion of financial services to all those who remain excluded. 2) Finance Minister in his Budget Speech on February 1, 2017 had announced a target of 2,500 crore digital payment transactions for FY. 2017-18. 3) In the digital payments ecosystem, merchants playa very crucial role especially in a country like India where nearly 90% of merchants are from the unorganized sector in the form of small grocery stores, local outlets, etc. Besides, there are vendors, auto/taxi drivers etc., who constitute a large share of unorganized merchants. The transaction amount at each of these merchants is generally small. 4) In the Debit Card/BHIM UPIIAadhaar-Pay payment eco system, when any payment is made at a merchant Point of Sale (POS) through a POS machine or QR "scan & pay" or online mode of payment, Merchant Discount rate (MDR) charge is payable by the merchant to his bank (Acquirer). A portion of this is shared by the acquirer bank with the card issuing bank and the card network operator. 5) RBI has issued a directive on 6th December, 2017 revising MDR applicable for debit card transactions which will be effective from 01.01.2018 wherein merchant category wise differential MDR rates have been proposed for transactions. 6) It has been decided by the Government to reimburse the MDR charges on small transactions which are less than or equal to Rs. 2000/- in value so that such digital payment transactions are promoted. The MDR on such transactions for the merchant will effectively become zero and hence they will come on par with cash transactions. The salient features of the scheme are as follows:- i) MDR applicable on Debit Card/BHIM UPIIAadhaar-Pay transactions less than or equal to Rs. 2000/- in value will be borne by Government for a period of two years with effect from lst January, 2018 by reimbursement of the same to the acquirer banks so that no MDR is payable by the merchant in respect of such transactions. Accordingly, the banks shall not charge any MDR from merchants for all eligible transactions under this scheme and consequently the consumers will not be overcharged citing MDR as a reason. ii) No MDR will be applicable in case of transaction value less than or equal to Rs. 2000/-. However, for transaction value above Rs. 2000/-, MDR would be applicable on the entire transaction value. For example, no MDR will be applicable in case of a transaction value of Rs.1800 and in respect of a transaction of Rs. 2300/-, MDR would be applicable on the entire transaction value of Rs. 2300/-. 267 172826/2018/SO(COMPUTER CELL) . ' 4 THE GAZETTE OF INDIA: EXTRAORDINARY [PARTI-SEC. I] iii) Each acquirer bank has to ensure that in accordance with the relevant RBI instructions, there should be no "bundled" agreement with the merchants covering both debit cards & credit cards. iv) In line with the RBI instructions dated 6.12.2017, the agreements should include a clause that MDR charges should not be passed on by the merchants to the customers while accepting payments through debit cardsIBHIM UPI/Aadhaar Pay. v) Each acquirer bank will be required to submit their respective reimbursement claims in the format to be laid down. vi) Such claim shall be accompanied with a certificate that the share of the MDR charges that is due to the issuer bank and the card network operator have been paid in full and the share of the acquirer bank has been clearly identified. vii) For every quarter the acquirer banks should submit a report duly certified by their statutory auditors regarding the volume and value of the debit card/BHIM UPIIAadhaar Pay transactions (showing on-us and off-us transactions distinctly). viii) Along-with the claim, the acquirer banks should submit to the RBI, a certificate from their auditor confirming that with respect to the claim under examination, MDR has neither been charged from the consumer by the merchant nor charged by the bank from the merchant in respect of the applicable low value transactions. ix) The Scheme is applicable to banks having operations in India and transactions done in India. x) The Committee set up to look into the issues relating to reimbursement of MDR to the acquirer banks with effect from 1.1.2018, has examined the inputs from Indian Banks Association (lBA) and leading acquirer banks and has suggested a cap of 0.40% of value of total debit card transactions less than or equal to Rs. 2000/- with regard to reimbursement of MDR on such low value transactions for a period of one quarter with effect from 1.1.2018. The committee has also recommended that a detailed consultative process for the reimbursement may be worked out. xi) Therefore, for a period of one quarter starting from 1.1.2018 there will be a cap on MDR reimbursable to the acquirer banks which will be at 0.40% of the total value of the debit card! BHIM UPI 1Aadhaar Pay transactions less than or equal to Rs. 2000. If felt necessary this cap could be revisited thereafter. xii) The reimbursement mechanism in respect of such low value transactions would be evolved through a consultative process involving the RBI, IBA and banks. Thereafter, the procedure for quarterly reimbursements of MDR to the Acquirer banks will be worked out and communicated to all concerned. 7) The banks are requested to ensure that the transition to this new scheme of MDR reimbursement for low value transactions w.e.f 1.1.2018 is done smoothly without any hitch. GOPALAKRISHNAN S., Jt. Secy. Digitally signed by RAKESH RAKESH SUKU L ~~~.U;01801.02193735 +05'30' Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-I 10064 and Published by the Controller of Publications, Delhi-I 10054. 268 172826/2018/SO(COMPUTER CELL) No:] 2I912017-l>PD-McitY Covcrnment of India Ministry of Electronics and Information Tcchnology Notification Datcd: 2ib Mat'ch 2018 Subject: Extension and modification in the BlUM (Bharnt Interface for Money) Aadhaar Merchant Incentive Scheme WHEREAS, the Central Government vide notification of Government of India, Ministry of Electronics aud lnfonnation Technology No. 12(84)/20 17-DPD dated 23rd June 2017, published in the Gazette of India, Extraordinary Part-I Section-I, notified a Scheme namely 'BHIM (Bharat Interface for Money) Aadhaar Merchant Incentive, with the aim to incentivize adoption of BHIM Aadhaar merchants and promote digital payments across un-organized sector as well as the citizens using BHIM Aadhaar. WHEREAS, the Central Government vide notification of Government of India, Ministry of Electronics and Information Technology No 12/13/20 17-DPD dated 14111August 2017, extended the operation of the scheme till 31 sl March 2018. AND WHEREAS, the Central Government has reviewed the scheme. Now, the Central Government hereby makes the following amendments in the notification of Government of India, Ministry of Electronics and Information Technology No. 12(84)/2017-0PD dated 23"1June 2017, published in the Gazelle of India, Extraordinary Part-! Section-I, notified under the subject namely 'BHIM (Bharat Interface for Money) Aadhaar Merchant Incentive schernei- I. For provisions in paragraph 2 & 3, the following provisions in the said paragraphs are subsituted namely:- 1.1 Paragraph 2.1- The BHIM Aadhaar Merchant Incentive Scheme will be operations till 31 st March 2019. 1.2 Paragraph 2.3 -- • Aadhaar Authentication be device agnostic and any device viz., Micro-ATM/PoS, mPoS, Kiosk/Tablet/Mobile Handset etc be covered provided that the transaction is for sale of goods & services by a merchant establishment and payment is by Aadhaar Number & Biometric authentication. However, regular Business Corresspondent (BC) banking transactions through microATM will not be covered under the scheme. • Each BHIM Aadhaar transaction may be given an incentive @ 0.5% of the transaction value upto Rs 10,000 with a minimum incentive of Rs 2/- and maximum incentive of Rs 50/- per transaction. Maximum incentive is restricted to Rs 2,0001- per merchant per month. No incentive is to be offered to the bank. • Entire incentive of 0.5% of the transaction value has to be passecl on to the merchant by the acquiring bank and no part of the incentive can be retained by the acquiring bank to defray any of its banking/operating costs. 1.3 Paragraph 3. I -- b. The maximum transaction value el igiblc under the incentive program is Rs 10,000. 1.4 Paragraph 3.2 - 269.., 172826/2018/SO(COMPUTER CELL) ii. BHIM Aadhaar incentive scheme is meant to defray the operational cost of the merchant and promote BHIM Aadhaar based digital payment transactions. 2. Annexure I - a. "Valid Financial Transactions - Transaction amount les than or equal to Rs 10,000. Q(:ro"'? 3. Other terms and conditions remain unchanged. ; 02:::>c..__-- (GOp~;1~!~allS) Joint Secreta,), 270 172826/2018/SO(COMPUTER CELL) No: 12113/2017-DPD-MeitY Government of India Ministry of Electronics and Information Technology Notification Dated: 27th March 2018 Subject: Extension and modification of BRIM (Bharat Interface for Money) Cashback Scheme for Merchants WHEREAS, the Central Government vide notification of Government of India, Ministry of Electronics and Information Technology No. 12(84)/2017-DPD dated 05th June 2017, has notified a Scheme namely 'BHIM (Bharat Interface for Money) Cashback Scheme for Merchants', with the objective to promote usage of BHIM-UPI amongst merchants by incentivizing its adoptions and also to encourage transactions via BHIM-UPI platform. WHEREAS, the Central Government vide notification of Government of India, Ministry of Electronics and Information Technology No 121l3/2017-DPD dated 14thAugust 2017, modified and extended the operation of the scheme tiII 31stMarch 2018. AND WHEREAS, the Central Government has reviewed the scheme. Now, the Central Government hereby makes the following amendments in the notification of Government of India, Ministry of Electronics and Information Technology No. 12(84)/2017-DPD dated 5thJune 2017, notified under the subject namely' BHIM (Bharat Interface for Money) Cashback Scheme for Merchants':- For provisions in paragraph 2 & 3, the following provisions in the said paragraphs are substituted namely:- 1.1 Paragraph 2.1: The scope of the scheme shall be limited to BHIM App users who have declared themselves as "I am a merchant" or have MCC "0000" and Merchants on• boarded by any bank receiving payment through BHIM-UPI and have MCC other than "0000". The duration of the scheme is 12 months i.e. I" April 2018 to 31s1 March 2019 and can be reviewed anytime based on the Government directions. 1.2 Paragraph 2.3: The cashback incentive slabs for merchants are: a. BHIM Merchant : BHIM App User who has declared himself as "I am a merchant" or have MCC "0000" will be eligible for following incentive: No. of credit transactions (per Cashback to the merchant Conditions month] (at the end of the month) Minimum transaction value eligible for cashback is Rs. 25; 10% of the transaction Maximum cash back is Rs. 1000 Minimum credit transactions to be value with an upper cap of per merchant per month. done to start earning the incentive incentive of Rs 50 per =>10 transaction Calendar month will be used for calculation of "month" 271 172826/2018/SO(COMPUTER CELL) b) BHIM-UPI merchants: Merchant of any bank receiving payment through UPI and have MCC other than "0000" No. ofcredit transactians Casbback to the merchant Conditions (per 111011(11) (at the end of/he month] ----.._.,"_ .._--,---..",.,,_-_ ..- __ ,,---- .. _"_"'----,------~ ---.---"---.-.-----.,,-,---. Minimum transaction value eligible for cashback is Rs. 25 M inim IIIII transactions to Maximum cash back is Rs. be done to start earning 10% of the transaction value with an upper cap of incentive 1000 per merchant per month. the incentive '=>5 of Rs 50 per transaction alendar month will be used for calculation of "month" --'---.'."-.'-~ ••••---"' ••,••,.,----.,.".-,- _""""""""'_'-- •• ,-.--, ••••,"""'- ••••••••••--- ••••-- ... - •• --.- ,_'N 1.3 Paragraph 3.): Defined transactions criteria for merchants to qualify for the cashback arc: a) Minimum of 10 credit transactions per month for BHIM App User who has declared himself as "I am a merchant" or have MCC "0000" and minimum of 5 credit transactions per month for the merchant of any bank receiving payment through UPI and have MCC other than" 0000". b) The minimum transaction value for the transactions eligible for cashback is Rs 25. 1.4 Paragraph 3.2: Other criteria: i. Merchant could be a BHIM app user or receiving payment through BI-IIM-UPI from any valid BHIM-UPI customer. ii. BHIM cashback for merchant scheme is a monthly scheme and calendar month will be used for calculation of "month" under the scheme. iii. Incentive will be credited to linked accounts of the eligible customers on or before) Oil! day of the subsequent calendar month. iv. Merchant can earn incentive Linder BHIM cashback scheme for merchants as well as BHIM referral scheme for individuals. (The overlap of merchant and individual is acceptable). Annexure 1- To be deleted Annexure 2 - To be deleted J....-.... ?-"'("__ ... ~.-....._- (Go(>alak"iSI~;:'~;~ Joint Secretary 272 172826/2018/SO(COMPUTER CELL) No-12/l3/2017-DPD-McitY Govcrnlllcnt of India Ministry of Electronics and Information Techuology Notification Dated: zs" March 2018 Subject: Extension and modification of HHIM (Bharat Interface for Money) referral bonus scheme for individuals WHEREAS, the Central Government vide notification of Government of India, Ministry of Electronics & IT No. 12(84)/20 17-DPD dated 05111JUIlC2017, has notified a Scheme namely 'BHIM (Bharat Interface for Money) Referral Scheme for Individuals', with the objective to incentivize the existing users of 13111M to bring new users on I3HIM platform and encourage new users to do transactions using J31-I1Mwith the target to increase the number of users for SHIM and also increase the transaction thereof. WHEREAS, the Central Government vide notification No 12/13/2017-DPD dated 141hAugust 2017, modified and extended the operation of the scheme till 3 Ist March 2018. AND WHEREAS, the Central Government has reviewed the scheme. Now, the Central Government hereby makes the following amendments in the notification of Government of India, Ministry of Electronics and lnformation Technology No. 12(84)/2017-DPD dated 5th June 2017, notified under the subject namely 'B1-IIM (Bharat Interface tor Money) Referral Scheme for Individuals"- I. For provisions in paragraph I, 2 & 3, the following provisions in the said paragraphs are substituted namely.- 1.1 Paragraph 1.4: In the promotion of digital payments, referral schemes are widely used to promote adoption of the new technologies, platforms and apps that are launched in the market and it has proved effective. The I3HIM Referral Bonus Scheme has been designed to encourage the onboarding of new users 011 the BHIM App and increase the usage of SIHM• UPI based transactions. The objectives of the scheme are: • Increase the number of users downloading, installing, linking BHIM App with their bank accounts and making first successful financial transaction. • Increase in the number of transactions using BHIM-UPl 1.2 Paragraph: 2.1 The scheme has two components a) Incentive for onboarding over BI-IIM App and b) Incentive on transactions over BHIM-UPI. The scope of the component 'a' is only BHIM app users and the scope of the component 'b' is the users of BHIM app as well as SHIM-UPl apI's of the banks. The duration of the scheme is 12 months i.e. 1st April 2018 to 3 Ist March 2019 and can be reviewed anytime based on the Government directions. 1.3 Paragraph: 2.3 The "incentive for onboarding" will be paid to the new users of the BHlM app who successfully download the 13I-IIMapp, link the BHlM app with their bank account/s and undertake one successful financial transaction through I3HIM app, The "incentive on transactions" will be paid to the users undertaking financial transactions 011 the BHIM app and/or BHIM-UPI apps of the banks. 1.4 Paragraph: 2.4 The incentives will be paid as pcr the following: 273 172826/2018/SO(COMPUTER CELL) Table-I Incentive for on boarding on BHIM app Total amount (in Rs) per S.No Incentive for onboarding BHIM app user , 51 1 New BHIM app user on downloading installing and successfully completing one financial transaction Table-II Incentive on transactions over BHIM-UPI (in Rs) per Conditions S.No Incentive on transactions Amount BHIM and BHIM-UPI app user of Banks Minimum BHIM and SHIM-UPI app 25 1 transaction value users of banks for unique should be Rs 100. financial transaction. The incentive will be paid for maximum 20 unique transactions per calender month. Only unique transactions will be eligible for incentive. Minimum BHlM and SHIM-UPI app Number of Incentive 2 transaction value users of banks for financial transactions per month (Rs) should be Rs 10. transaction. per month Calendar month >=25 but 100 will be used for less than 50 calculation of >=50 but 200 "month" less than 100 >100 250 1.5 Paragraph 3.1: Qualification to earn incentives: a) For "incentive for onboarding on SHIM app", the user has to download, install and link BHIM app with the bank accountls and successfully complete one financial transaction of any value. The incentive will paid only one time and for the new users only. b) "Incentive for transactions over SHIM-UPI" will be paid separately for both unique transactions as well as total financial transactions as per the conditions mentioned in Table-II. I. For incentive on unique transactions the users undertaking financial transactions on the SHIM app and/or SHIM-UPI apps of the banks shall be entitled to receive incentive on maximum 20 unique transactions in each calendar month. Minimum 274 172826/2018/SO(COMPUTER CELL) ·- . transaction value should be Rs 100. II. All user transactions of value equal to or above Rs 10 will be eligible for incentive as per the conditions mentioned at S.No.2 of Table-Il c) To be deleted 1.6 Paragraph 3.2: To be deleted 1.7 Paragraph 3.3: a. Only valid approved transactions from BI-IIMapp and BHIM-UPI apps of banks or *99# will be considered for the scheme. b. The "unique transaction" is the first financial transaction between any two BI-IIM-UPI users/V PA. c. Incentive on the transactions will be paid to the user whose account is debited for the "valid financial transaction". d. "Valid financial transaction": Money transfer from one bank account to another bank account of amount greater than or equal to Rs 1 and less than on equal to Rs 100,000. e. To be deleted. f. To be deleted Annexure 1: To be deleted Annexure 2: To be deleted /-"'~, s t?/~~,.7 (Gopalal Joint Secretary 275 172826/2018/SO(COMPUTER CELL) ~~ Kumar ~~ Pramod 'fiwari, lAS ~ ~, ~ • x:fl March 13, 2018 Dear Sir/Madam, You are aware that Government of lndiaaccords high priority to implement digital mode of payment across all e-governance services toreduce the dependency on cash-based transactions. Detailed instructions/guidelines/circulars have been '-' issued by this Department to use the various cashless modes at Fair Price Shops i.e. Aadhaar Enabled Payment System, Card Based Payment, ljnstructured Supplementary Service Data (USSD), Unified Payment Interface (UPI) and e- Wallet etc. 2. It has been pointed out by some States/Urs that Merchant Discount Rate (MDR) charges~ were involved in cashless.... transactions which. became an obstacle for rolling~ out digital payments in Public Distribution System. This is to inform you that Govt, of India has decided to reimburse the MDR charges.... on small amount transactions 'which are less than or equal to Rs. 2000/-' to promote usages of digital modes of payment. In this regard, Ministry of Electronics and Information Technology (Meit'Y) has issued a notification on 2thDec. 2017, which says that applicable MDR charges on Debit Carel, BIIlM UPL Aadhaar Pay based transactions with the value of less than or equal to Rs. 2000/- will be borne by Govt. of India for a period of two years with effect from 1,I.January 2018. A copy of notification is annexed. , 3. Ministry of Electronics and Information Technology (Meit Yjhas further requested vide refencence No. 12( II )/20 17-DPD dated IS(January 2018 to adopt various modes of digital payment, organize programme /campaigning to create awareness about. digital payment modes and cashless/discount offers, etc. MeitY has also shared Standard Operating Procedures (SOP) for enabling digital payments and scorecard template lor monthly reporting of progress. 276 172826/2018/SO(COMPUTER CELL) -2- 4. MeitY has collaborated with NSDL Database Management Limited (NDML) for providing a centralized payment gateway (PayGov India) to enable citizens to make online payments for availing various services of government. In this regard, DO letter No. 84/2009-EG II ( Vol-III) dated 2211dJanuary 2018 (Annexed) received from Joint Secretary. MeitY regarding implementation of PayGov platform by Ministries/Departments may be seen. 5. It is requested to take necessay action to adopt digital payment modes and PayGov India platform for the implementation of digital payment in PDS transactions in your State/UT. It is also requested to update detai Is of cashless transactions in attached scorecard template and share it with this Department on monthly basis. With regards'- ... End: As above. Yours sincerely, ~~. (Pramod Kumar Tiwari) To, Principal Secretary/Secretary Food and Civil Supply department All States/UTs. 277 172826/2018/SO(COMPUTER CELL) Copalakrishnan.S .Joint Secretary C GOCompiex T ~maij: js.gopaJ(a1rm2it), ..gQyJu .e,¥bIlFax 24363075 T1.3(84)!2009-EG II (Vol Ill) Sub: National Payment Service Platforsn ~PayGov Sir/Madam, As you are aware, Government of India is encouraging growth of Digital payments towards becoming a less Cash economy. Post demonetization, country has seen immense growth of digital payments through various payment modes. In order to continue and enhance the momentum of growth of digital payments, it has become essential that departments should adopt electronic modes in every transaction within Govcrument and with Citizens and Businesses. 2. MeitY has collaborated with NSDL Database Management Limited (NDML) for providillg a centralized payment gateway (PayGov India) which wiil enable citizens to make online payments for availing various government services. This payment. gateway has also been integrated with NSD(j (National Service Delivery Gateway), SSDG (State Service Delivery Gateway) and the Mobile $e,,3 platform to provide a single interface for connecting to various SLatePortals, National Portal, other e. Government applications and mobile based services. Details about Paytiov are enclosed along with this letter (Annexure I). 3. It is requested that the Central/State!UT departments/Public sector undertakings. State Corporations, Municipal Corporations, Government bodies and Public utilities should integrate their applications with PayGov India - National Payment Service Platform to enable the citizens to make online and mobile based payments for availing Government services. payment of taxes and utility bills. 4. PayCiov enables the li)lIowing comprehensive range or payment modes to facilitate easy online and mobile based payment for citizens:- 11. Credit Cards b. Debit Cards c. Net Banking d. IMPS (Immediate Payment Services) e. Cash-card! Prepaid CardI Wallets f NEFT/RTGS .. BHIM/UPI 5. In cast' (If any clarifications, regarding the above you may kindly contact Ms. Kavita Bhatia, Director (DigiDhan Mission), MeitY, Ph: t- 91-011-24364729, E-mail: ~[)h.lti.I~~;gQ\.in An C.clllral Ministries !Jigita/lndia P"IW~f 1~.Empower 278 172826/2018/SO(COMPUTER CELL) Guidelines for PayGov India - National Payment Service Platform Background: Government Portals aims at providing various services to the citizens near their doorsteps in electronic form. It is seen that many services offered by several slates/Central Departments arc transactional in nature and require ices to be paid by the citizen for availing the services. A need was felt for integrating payment service with these Portals. The integration of Payment Gateway for enabling ef'ayment/ml'aymem will further facilitate the adoption of e• Government and online request for Government Services fulfilling the vision ofNeGP. In this regard, MeitY has entered into an agreement with NDML. a wholly owned subsidiary of National Securities Depository Limited (NSDL) for providing a Payment Gateway integrated with the various Government services. PayGov India: 1. PayGov India has been operated and maintained by NDMI,. PayGov India wilt enable transactions for all public/private hanks in India through a. Credit Cards b. Debit Cards c. Net Banking d. IMPS (Immediate Payment Services) c. Cash-card! Prepaid/ Wallets f. NEFT/RTGS g. Cash (VLE may use any mode as above for depositing the fees on behalf of the citizen) It BIIlM/UPI 3. NDML will charge transaction fcc for every transaction don I:! with the PayGov, the fee structure for the same is tabulated below . Transaction Fees (Excluding applicable Taxes) : No. Net Banking -/ Rs, 5 for transaction amount Lip to Rs.500 -/ Rs. 1I) for transaction amount above Rs.500 2 Debit Card Zero for value up to Rs. 2000 3 Credit Card II % of the transaction amount 4 Cash-card/ Prepaid/ f Rs.1 0 or 1.5(%of the transaction amount whichever is lower Wallets 279 172826/2018/SO(COMPUTER CELL) y' Rs.o for transaction amount lip 10 Rs. 5.000 y' Rs.7 for transaction amount from Rs. ).O() 1 10 25,000 . ../ Rs.8 tor transaction amount horn R:;.25.001 to 50,000. y" Rs.9 for transaction amount from Rs. 50.001 to 1,00,000. 6 7~ks.5 pCI~payme;ltfor any amount 7 i BHIM/UPI For transaction value upto Rs. 2000 '. Zero 1../ For transaction value above Rs. 2000·, Rs. 7.50 4. These rates have been negotiated with NDML specifically for Government transactions and will be consistent across all Statcs/U'Is/Ccmral Departments. Moreover, these rates will be applicable only for payments made by citizens/eSC tor availing Government Services and Utility payments. Guidelines fOI" Statc/UT: I. Meit r' will facilitate the department in contacting NDML for integrating their services with PavGov for providing ePaymentimPayment services to the Citizells/CSCs. 2. Stale will have to appoint a Nodal SDA/01liccr for all interaction with NDML with respect to PayGov who would be focal point for all integration and payment/account settlement. 3. NDML will provide reconciliation statement of all successful and failed transactions on PayGov to the respective State Nodal Officer 011 a daily basis. 4, StatefUT/Central Department should validate the reconciliation statement provided by NDMI, against their bank accounts. Any deviation may he directly resolved with NDML Process flow for ef'ayments: Once PayGov is integrated, the process for making online payments for the desired service will be as follows -- 1. User logs on to the Portal/Website and completes the desired service. Portal/Website performs the necessary validation/verifications and specifics the amount of payment to be made. Portal/Website asks the user if he/she would like to make electronic payments for the requested service. 3. If yes, the user is guided to the payment gateway interface, where different payment options are provided, i.e., Credit Card, Debit Card, Cash Card or online Banking. 4, The user selects an option for the available options Depending on the payment option selected, the user will be directed to concern payment interface. 5. The user has to provide authentication and authorization details (0 proceed with the payment for the service. 280 172826/2018/SO(COMPUTER CELL) 6. The user is intimidated of success/failure of the lrans 7. On successful transaction, the user is informed of the successful completion of the online payment and issues an acknowledgement receipt for the service. x. The money is debited from the account of the customer or esc and is creditcd to the Government account. Process flow for mPayments: Agem {customer) shall h;lh' Depanmcnt': rHobik App) installed on his mobile. Customer shall open the Mobile ApI' 1~)1'submitting the online request. e.g. issue of a birth certificate, bill paymenbi. eus/umer shaH f.n ilie online form containing the details as required by the specific service providers (departments). Based on the service type selected, the Mobile App shall identify the service amount that has to be paid by the customer. 2. Mobile application invokes the mobile browser and makes a call to a designated department's central URI, (managed hy the department on its server, here in after referred to as "Central URL") passing along certain parameters like, transaction amount, etc. Central URL on receiving the input parameters, generate a Unique Transaction Id and creates the request message string as per Payflov India message specifications. ;1 In a seamless manner this Central URL will then redirect the USCI' to the underlying PayGoy India WAP URL. " Cust{llHCI shall bc' displayed various pllymerH oplinl)s slIch ,IS Debit (';lI'cliNeI Banking/I\\:IPS etc Based on th... option ~I.:k·l:l('d. ClIs\ollt(,'r rcdir{~cIC(1to the relevant banklcm'd page II' make 111('payment. C\lslmm..~r n': () On confirmation of the payment the Customer's account is debited and the Customcr is then directed back to the designated Return URL (that was received in the transaction initiation message) within the Mobile Browser. 7 Basis this response, Department shall display an acknowledgemcnt to the customer. x J'ay{.i(.\1 lndi.i "hull " unique I lD \lldt'! IHunbcl that is received - which could be displayed to the customer; and used for any queries relating to the transaction. 281 172826/2018/SO(COMPUTER CELL) ~ ~" sTo ~o- 3300-1199 REGD. NO. D. L.-330041 ~I~ ...I onl ~he Q:ja~ette of 3Jndia amrtmVT EXTRAORDINARY 'IiTlT [-"&ll"S I PART I-Section 1 ~~~ PUBLISHED BY AUTHORITY "#. 05J ~~, ~, ~ 2, 2018~ 12, 1939 No. OS] NEW DELHI, TLJESDAY, JANUARY 2, 2018/PAUSHA 12,1939 dlf8~~i11 -;;t~, 27~, 2017 ~ : 2000 ~, lIT ~ ~ ~ ~ ~ ~ I~ ~/lt{Q-\ltij ~ 1ft It'1{5Id1I(~ ~ ~ "SI'Gl'i1' 'Ii<'iT 1 ~. 6(19)/2017~-1:- 1. ~ if¬ '~1 ~~ ~~ 61CIA < 'CIi1 1, ~ lIm:R" 3i'R~# 2. 1~, 2017;f.r P-ml +rfr ~ 3f4'fr ~ ~ it ~ ~ 2017-18 it fT.ro: 2,500 ~ ~ ~·~<1.,~.,'f~"fl' ...: 3. ~.~ ~~ rf?r it, 0lWfffr 14f,~ 4, ;;p.r :gfCI~ m/m.r i.fTI3IT'f/6lTID<:-Q .~ ;,"f~ift1":~14if -m 'Tf'1T'1 fr~ l1!ifr;:; m 'f'i.3lR "~ *'~" II) 282 172826/2018/SO(COMPUTER CELL) 1~..t..b.%OVO ~ .hi&. ~ ~ ~ .tt-.LlRlli:/~..y:Jt l1lJt/~ ~ ~ ~ ~ l.Ii. ~ OOOl .!,¥: ~ ~ ..t..b. ~ lll?~ ~ ~ N~~ ~ ~~ ~.1J:ll.I2 ~.':!tf11 ~ 8~Ol' ~O'~O ~:ill£ '!X I~~ lI£. ~ ijt ~ ,I'P@II->ft ~ ~ ~ ~ ~ ~ ~ ~.ij:t • .l?J.Wi.fut. ~ ~ I ~ ~ ..I:illift.l!h ~ %OV-O ~ .h!1t ~ LP~PI:.'~ ~ ~ ~ .hi&. ~ ~ ~ ~ OOOl .J:;R~ ~ ~.(g< ~~..t..b.~~~hl~~~~!hl!~8LOl·~·~~..t..J¥2~~ .iLl!tl.lJ.h.l!h~ Qilli.l;_t N ~ .lJn..tlli: ~ (~) .B..!i ~ ~llit. ~ ~ ~:t ~ ~ ~ JI1~-llB~.ili ~ JJ¢.!i ~.(g< ~~ ~ ~~. ~ 8LOl'~0'W ~ 'X I~ ~..t..b. ~ illt ~,I¢ ID.llt lP£.ili ~ ~ ~ ~,I¢ k.ill:t. ~.lili. 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No. 6(l9)/2017-DPD-1.- I) The Digital India Programme envisions transforming India into a digitally empowered society and knowledge economy by making available digital infrastructure, digital governance and digital services to every citizen. Promotion of digital payments ecosystem is an essential aspect of the Digital India programme and has the potential 10 transform India's economy and extend inclusion of financial services to all those who remain excluded. 2) Finance Minister in his Budget Speech on February 1.2017 had announced a target of 2,500 crore digital payment transactions for FY. 2017-18. 3) In the digital payments ecosystem, merchants playa very crucial role especially in a country like India where nearly YO'k of merchants arc from the unorganized sector in the form of small grocery stores, local outlets. etc. Besides, there arc vendors, auto/taxi drivers etc., who constitute a large share of unorganized merchants. The transaction amount at each of these merchants is generally small. 4) In the Debit Card/BHIM UPI/Aadhaar-Pay payment eco system. when any payment is made at a merchant Point of Sale (POS) through a POS machine or QR "scan & pay" or online mode of payment. Merchant Discount rate (MDR) charge is payable by the merchant to his bank (Acquirer). A portion of this is shared by the acquirer bank with the card issuing bank and the card network operator. 5) RBI has issued a directive on 6th December, 201.7 revising MDR applicable for debit card transactions which will be effective from 0 1.0 1.2018 wherein merchant category wise differential MDR rates have been proposed for transactions. 6) It has been decided by the Government to reimburse the MDR charges on small transactions which are less than or equal' to Rs. 2000/- ill value so that such digital payment transactions are promoted. The MDR on such transactions for the merchant will effectively become zero and hence they will come on par with cash transactions: The salient features of the scheme are as Iollows> i) MDR applicable ,JIl Debit Card/BlUM UPIIAadhaar-Pay transactions less than or equal to Rs, 2000/- in value will be borne by Govemment for a period of two years with effect from lsi January, 2018 by reimbursement of the same to the acquirer banks so that no MDR is payable by the merchant in respect of such transactions. Accordingly. the banks shall not ..:harge any MDR from merchants for all eligible transactions under this scheme and consequently the consumers will not be overcharged citing MDR as a reason. ii) No MDR will be applicable in case of transaction value less than or equal to Rs. 2000/-. I!uwcver. [or lransaction value abow I [PARTI-SEC. I) 4 THE GAZETIE OF INDIA: EXTRAORDINARY iii) Each acquirer bank has to ensure that in accordance with the relevant RBI instructions. there should be no "bundled" agreement with the merchants covering both debit cards & credit cards. iv) In line with the RBI instructions dated 6.12.2017, the agreements should include a clause that MDR charges should not be passed on by the merchants to the customers while accepting payments through debit cardS/BHIM UPI/Aadhaar Pay. v) Each acquirer bank will be required to submit their respective reimbursement claims in the format III be laid down. vi) Such claim shall be accompanied with a certificate that the share of the MDR charges that is due to the issuer bank and the card network operator have been paid in full and the share of the acquirer bank has been clearly identified. vii) For every quarter the acquirer banks should submit a report duly certified by their statutory auditors regarding the volume and value of the debit card/BHIM UPIIAadhaar Pay transactions (showing on-us and on-us transactions distinctly). viii) Along-with the claim, the acquirer banks should submit to the RBI. a certificate from their auditor confirming that with respect to the claim under examination. MDR has neither been charged from the consumer by the merchant nor charged by the hank from the merchant in respect of the applicable low value transactions. ix) The Scheme is applicable to banks having operations in India and transactions done in India. x) The Committee set up to look into the issues relating to reimbursement of MDR to the acquirer banks with effect from 1.1.2018. has examined the inputs from Indian Banks Association (IRA) and leading acquircr banks and has suggested a cap of 0.40% of value of total debit card transactions less than or equal to R<;.2000/- with regard to reimbursement of MDR on such low value transactions for a period of one quarter with effect from 1.1.2018. The committee has also recommended that a detailed consultative process for the reimbursement may be worked out. xi) Therefore. for a period of one quarter starting from 1.1.20 I8 there will be a cap on MDR reimbursable to the acquirer banks which will be at 0.40% of the total value of the debit card/ lUI [M UPI I Aadhaar Pay transactions less than or equal to Rs, 2000. If fell necessary this cap could he revisited thereafter. xii) The reimbursement mechanism in respect of such low value transactions would be evolved through a consultative process involving the I Oig,t.oy U91, ..d by RAr..(S!l RAKESH SUKUL :'~~"'.I"'9."" ~-C5'3i}' Uploaded by Dte. of Printing at Government of India Press. Ring Road. Mayapuri, New Delhi- I 100M and Published by the Controller of Publications. Delhi-ll0054. 285 172826/2018/SO(COMPUTER CELL) D.O. No. 12( 11)/20 17 -OPO (MeitY) January 1st, 2018 Dear Secretary, Government of India is making efforts for promoting a less cash economy and to provide the facility of seamless digital payment to all citizens of India in a convenient manner. Horr'ble Finance Minister has set a target of 2.500 Crorc Digital Payment Transactions in FY 2017-18. 2. Digital payment acceptance infrastructure throughout the country is an important step for enabling wick scale adoption of Digital Payments. Simultaneously, it is also required to catalyze the mindsct change in citizens through appropriate interventions such as incentives, promotional campaigns, award & recognition etc. 3. /\ co ordinatcd effort by all Government Ministries jDepartments is of vital importance for the success of Government's initiative for promotion of digital payments. It is hereby requested that the following activities may be considered and appropriately incorporated in all organisations concerned with your Ministry/Department. a) Enabling all online payment systems to accept payments using BHIM/UPI, Bharat QR code/ UIIIM QR code and Rupay Card. b) On-boarding of all Billers on Bharat Bill Payment System fB13PS) c) Printing of Bharat QI-( codc./ BIJIM QR code (preferably dynamic) on all UTility bills, invoices etc d) Enabling appropriate payment. options in all physical payment receipt counters, such as: • Prominent display of printed static Bharat Ql'( code/BHIM (JI~ code at the payment receipt counter to enable customer to sean and pay. • Dynamic Bharat QI~code/ BI-lfM OR code 011 a display facing the customer. • Enabling payment receipt through BHIM Aadhaar PoS machines, particularly in rural Zscmi-urban areas. 286 172826/2018/SO(COMPUTER CELL) • Pull request through Mobile no. /Virtual Payment address (VPAl wherein a payment request of desired amount is received on BHIMjUPI enabled App of the customer. CJ Offering a visible discount on digital payment vis-a-vis cash. f) Organizing campaign for promotion of Digital Payments. g) Recognizing/rewarding the initiatives for promotion of digital payments. 4. Standard operating procedure (SOP) for enabling the digital payment modes and scorecard template for monthly reporting of progress in Digital Payments has been attached. It is requested that relevant available information from 1st April, 2017 onwards, may kindly be informed regularly to McitY. Yours sincerely, (Ajay Sawhney) Encl.: As above To Secretaries of aJLM},nistries/Departments, Government of India 287 172826/2018/SO(COMPUTER CELL) Standard Operating Procedures SHIM IUPI Integration SHIM/UPI is a platform that empowers multiple mobile apps like SHIM, SHIM Family Apps by participating banks and third party apps to provide seamless fund transfer & merchant payments. It also caters to the "Peer to Peer" collect request which can be scheduled and paid as per requirement and convenience. SHIM/UPIcan be integrated into online paymentsystems of organisations, so that customer receives a bill payment request in his SHIM/UPIenabled App by entering mobile number or Virtual Payment Address (VPA) while making online payment. Customer just needs to approvethe request to complete the bill payment. SHIM/ UPI can also be integratedwith counter payment systems,whereby payment request (pull request)of requiredamount is sent to the SHIM/UPIenabled App of the customer. Process for integrating SHIM/UPI in online/counter payment systems 1) Internal management discussion and appropriate approval for integration of SHIM/UPI in online/counterpaymentsystems 2) Organisation should discuss with their banks and aggregators for implementing the solution 3) Organisation & Sank needs to agree on the commercials and technical details for integration of SHIM/UPI 4) Integrationof organisation's payment system with Application Programming Interface (APls) provided by banks for enabling SHIM/UPIin online/counter payment systems 5) Post the implementation, Sank to perform test transactions to check the retum file (transaction details) which could be passedon to organisationfor reconciliation 6) After successful test transactions,organisationwill be ready to integrate SHIM/UPIin online/counter payment systems 7) Capacity building & knowledge transfer to employees for using SHIM/UPI based pull request in the counters 8) Sank as well as the organisationshouldtake steps to educate the customer to pay by using SHIM/UPI. This can be done through circulationof pamphlets, publicity on print media. social networkingsites etc. SHIM Aadhaar SHIM Aadhaar enables the customer to make digital payment directly from his Aadhaar linked Sank account. Customer is required to tell the Aadhaar number and scan the finger to make a payment. There is no reqUirementfor the customer to carry any mobile phone, card etc. MerchanUOrganisationsneed to connect biometric device (fingerprint scanner) with their mobile phone/PCs for customer authentication. SHIMAadhaar will enable digital payments in rural/ semi-urbanareas, as it does not require the customer to carry any mobile phone, card etc. Government has set a target of deploymentof 20,00,000 SHIM Aadhaar PoSdevicesfor enabling digital payments. 288 172826/2018/SO(COMPUTER CELL) Bharat QR code NPCI in collaboration with Mastercard and Visa has launched Bharat OR code, an interoperable payment acceptance solution that supports Visa, MasterCard and RuPay cards & SHIM-UPI for wider acceptance. Sharat OR may be of two types: • Static Bharat QR code: It may be displayed at all payment receipt counters, and merchant outlets for enabling acceptanceof digital payments. It provides a quick and convenient method for customer to pay by simply scanning through Sharat OR enabled mobile App. The requiredamountto be paid is entered by the payer. • Dynamic Bharat QR code: It contains the informationabout the amount to be paid in the OR code itself, hence customer is not required to enter the amount. DynamiC Bharat OR code is an ideal solution to be printed on all types of utility bills, invoices etc. It can also be displayed in physical payment receipt counters through a screen facing the customer for enabling scan & pay. BharatOR code based payment has followingadvantages: i. Traditional PoS machines require upfront investment in PaS machine and internet infrastructure as well as expenses on regular operations and maintenance. On the other hand, static Sharat OR code does not require any such expenditure. ii. Bharat OR code is a single unified OR code capable of accepting paymentsfrom Visa, MasterCard,RuPay Cards & SHIM-UPI,for wider acceptance. iii. Customer can easily make payments through Bharat OR code and does not require to carry physical Debit or Credit card. iv. As there is no requirement of a physical card, the risk of data theft or security issues through tampered or cyber-compromised point of sale devices is minimised. v. Merchants accepting the paymentthrough Bharat OR code, receives the amount directly in their Sank accounts. Necessary steps may be taken by all organisationsfor prominent display of printed static BharatOR code at all payment receipt countersand printingdynamic Sharat OR code on all utility bills, demand note, invoices,statementof chargesetc. Processfor enabling Bharat OR code The following steps should be taken to implementBharat Code by the Organisation 1) Internal management discussion and appropriate approval for implementation of Bharat OR code 2) Organisation should discuss with their banks and aggregators for implementing Sharat OR code 3) Organisation & Bank needs to agree on the commercials and technical details for implementationof Bharat OR code 4) Integration of organisation's payment system with Application Programming Interfaces(APls) provided by banksfor implementationof Bharat OR code 5) Post the implementation, Bank to perform test transactions to check the return file (transaction details) which could be passedon to organisationfor reconciliation 6) After successful test transactions,the BharatOR codes will be ready to be printedon the bills, invoices etc and for displayat paymentreceipt counters 7) Capacity building & knowledge transfer to employees for accepting payments through Sharat OR code 8) Sank as well as the organisation should take steps to educate the customer to pay using Sharat QR code. This can be done through circulation of pamphlets, publicity on print media, social networkingsites etc. 289 172826/2018/SO(COMPUTER CELL) Bharat Bill Payment System (BBPS) Bharat Bill Payment System (BBPS) is a Reserve Bank of India (RBI) conceptualised system driven by National Payments Corporation of India (NPCI). One-stop payment platform for all bills providing an interoperable and accessible •Anytime Anywhere" bill payment service to all consumers across Indiawith certainty, reliability and safety of transactions. The unique feature is seamless payment of various bills like electricity, post-paid mobile, broadband, landline, Direct-To-Home, gas and water bills can be paid on this platform through consumers own internet banking/mobile banking or non-bank app or retail outlet at a Single window just seeing a "Bharat BillPay" logo BBPS is a tiered structure with NPCI functioning as the Bharat Bill Payment Central Unit (BBPCU) and entities (banks and non-banks) authorised by the Reserve Bank of India (RBI) functioning as Bharat Bill Payment Operating Units (BBPOUs). As per RBI guidelines, in future, aggregation of bill payment services can only be offered by entities that participate in BBPS. Procedure for On-boarding on BBPS 1. Default BBPOUs: The Biller/Utility Company has to select maximum of two authorized BBPOUslentities authorised by RBI for participating in the BBPS Scheme (BBPOUs list• Annexure-I) 2. Biller Consent: Submit the Biller Consent Form (A Form where the Biller/Utility gives consent to an entity to participate in BBPS) to the concerned or default BBPOUslNPCI (Format delinated in Annexure-II) 3. Communication: Integration with chosen entity and ensure communication with BBPOU over secure channel. 4. Bill Information: The Utility company/biller must provide bill information parameters to the chosen entity/BBPOU. After On-boarding 5. Bharat BiliPay Brand: The Biller must advertise the Bharat BiliPay logo on their Bills and on their website as per format shared in Annexure III 6. Credit Account: Credit the Customer account on the day of payment transaction receipt 7. Support: Following NPCI officials may be contacted for queries regarding BBPS onboarding • Level 1: Ashish Mohan Saxena (Email: [email protected] Ph: 9821300213) • Level 2: RahulTandon (Email: [email protected] Ph: 7506446591) In case of any issues or clarifications, the Utility Company can mail on [email protected] Note: There would not be any bill COllectionpermitted outside the BBPS, except for own outlets of Biller/UtilityCompany ------290 172826/2018/SO(COMPUTER CELL) BBPS assures the following benefits to the billersfUtility Companies. 1. Cost-effective: This will enable the billers to make their collection through authorised entities and can eliminate their own physical collection points that entail a huge set up and maintenance cost. BBPS commercial is designed around flat fee pricing and that is significantly cheaper than ad valorem pricing charged through traditional methods, including payment gateway transactions. 2. Accessibility: Apart from their own collection points, Billers will have the benefit of substantial digital outreach across all geographies through online channels like Intemet banking, Mobile banking of Bharat Bill Payment Operating Units (BBPOUs). Similarly physical touch-points would increase very Significantly with lakhs of BBPS agent and business correspondents led outlets. 3. Assurance: Assurance of dealing with stable entities like banks and prominent bill aggregators who meet qualifying criteria and have been duly authorised by RBI as Bharat Bill Payment Operating Units (BBPOUs). 4. Guaranteed Settlement: Guaranteed settlement cycles would assure the billers of funds, as per standard specified in BBPS, with assured TAT in a timely manner from their respective BBPOU. This obviates the need for vetting and securing advance deposits and guarantees. 5. Improved liquidity position, better receivable management and easier reconciliation due to faster settlements with assured TAT. The data for all payments collected is made available to the biller by the BBPOU(s) chosen by the biller. Multiple files with fragmented data can be avoided, thus leading to faster and more efficient reconciliation. 6. A Regulated Set-up with Standardisation: BBPS is a well-regulated mechanism for bills collection. The BBPOUs are authorised by RBI after due diligence. All non-bank BBPOUs have to meet stringent net worth criterion. All participants, including Agents, will follow the standards prescribed by BBPCU (NPCI). 7. Single Integration: All that a Biller needs to collect aUits bills on BBPS platform is just one integration with BBPOU of their choice. With this, all its consumers can make payment of bills anywhere in the country, be it in electronic mode (including Debit Cards, Credit Cards, Internet Banking, Mobile Banking, m-Wallets, Prepaid Instruments, UPI, IMPS, Aadhaar based payments, etc.) or physical channels (ubiquitous outlets accepting bill payments in cash or in assisted electronic mode such as POS terminals, AEPS, Wallets, etc.), The Biller has the option of integrating with an additional BBPOU for BCP purpose, or as a backup for uninterrupted service or for load sharing. 8. Instant Confirmation: BBPS mandates instant confirmation of payment made via a payment receipUconfirmationmessage. The receipt could be in the form of SMSI email! print out as desired by the customer. To obviate frauds, there is a provision for independent verification of receipt/ payment acknowledgementdirectly by the customer. 9. Multiple Payment Modes: The platform supports multiple payment modes like Cards, Wallets, AEPS, UPI, e-Banking, cash and thus offers extensiveflexibility to the customer. 10. Lower CAPEX and OPEX: Due to easy access to the entire universe of consumers enabled by just one or two BBPOUs, the billers will need fewer integrations with bill aggregators. There is significant potential for the billers to review the need for maintaining high cost biller• owned outlets for bill collections. 11. Centralised Grievance Redressal Mechanism: A centralised grievance management system to address the complaints and disputes within specified turnaround time. This is a highly customer-centric initiative which will foster trust in BBPS brand. 291 172826/2018/SO(COMPUTER CELL) N?C/l) ~!r,:rU:l! ?}r:t.}/~! :r-F{l"'i N_"':~()NA'!'-ArMENrsCURPORAilONor fN[){A LIST OF BBPOUs WHO HAVE RECEIVED IN PRINCIPLE APPROVAL FROM RESERVE BANK OF INDIA ~ otJJr~".1.1 1 ~te Ba~~f _!_rldia 1 Ratnakar Bank 3 KotakMahjnd~k 4 _Andhra_Bank 5 Axis Bank 6 Bank of Baroda 7 Canara Bank 8 Central Bank of India 9 Co~oratjon Bank 10 DCB Bank 11 HDFC Bank 12 ICICI Bank 13 lOBI Bank Ltd 14 Induslnd Bank Ltd YES 15 J&K Bank Ltd 16 PUnEb & Sind~nk 17 ~ab National Bank 18 ~Llth Indian Bank~d 19 Stan~~ Char~ Bank ~ Union Bank~f India 21 _'I.I~ Bank 22 A.P. Mahesh Co-~rative Urban Bank Ltd. YES 23 Oombivili Na~ri Sahakari Bank Ltd 24 Gopinath Patil Parsik Ja~ Sahakari Bank Ltd. 25 PunElb and Maharashtra CO_::_~EerativeBank Ltd 26 The Kalupur Com~ Co-operative Ba~ 27 The Sara~ Ba~ Ltd 28 TJSBSahakari Bank 29 Techprocess Pa_'Lm_ent~ervjces~ YES 30 Indiaideas.com Limited (Bill Oe~ YES 31 Euronet Services India Private Limited YES 32 PayU P~yments Private Limited YES 33 ~Oxigen Services (Indj~ Pvt Ltd. Gurgoan YES 34 ~mlln~tions Pa.1:!!!!__ YES 1 292 172826/2018/SO(COMPUTER CELL) 4:d,;<.fI~j '''f~:h' ~';I,H·-i NAfN.l"'AL PArM!N1S C(JlN)(.J.kAf!O,""4'(F !·'VU!~~ 35 Spice Digital Limited, Naida (UP) 36 American Express Banking Corp 37 DBSBank Ltd. 38 Federal Bank 39 Indian Bank .._.._..._._._---_...... __._-_.. 40 UCO Bank 41 Yes Bank YES 42 Janata Sahakari Bank 43 Karur Vysa Bank (KVB) YES 44 The Shamrao Vitthal Co-operative Bank (SVC) 45 Deutsche Bank 46 Oriental Bank of Commerce (OBC) 47 Common Service Centres (CSC) 48 ITZCash Card ltd. YES 49 CCAvenues YES 50 Airtel Payments Bank 51 Dhanlakshmi Bank 52 United Bank of India 53 Tamilnad Mercantile Bank _. 54 Catholic Syrian Bank 55 City Union Bank Ltd 56 Indian Overseas Bank YES -- 57 Capital Small Finance Bank ltd. 58 lakshmi Vilas Bank Ltd. 59 IDFCBank YES 60 Kerala Grameen Bank 61 Bank of India 62 Allahabad Bank 63 Bandhan Bank 64 Equitas Small Finance Bank YES 65 One Mobiqwick Systems Pvt. ltd. 66 Syndicate Bank 67 Jio Payments Bank 68 Idea Payments Bank 69 Pragathi Krishna Grameen Bank 70 AU Small Finance Bank 2 293 172826/2018/SO(COMPUTER CELL) 'I.INit!,'/ ~it~;/t:(''J~I~Jf''fl~~~F'! NATIONAL I'4YMCNIS CORPO/IAHON OF iNl~A Consent of the Sillerfor Authorisation/ Changeof the default SBPOU (On Biller's letter Head) To The Head, Bharat Bill Payment System(BSPS), National PaymentsCorporation of India, Unit 302, 3'uFloor, RahejaTitanium Off Western ExpressHighway Goregaon-East,Mumbai-400 063 DearSir, We (Name of the Biller) with Registered Office at ------haveagreedto participate in the Sharat Bill PaymentSystem (SBPS)under Bharat Bill Payment Central Unit (BBPCU)under National Payments Corporation of India (NPCI),with registered office at The Capital/100l A, B-Wing,lOth floor, Bandra Kurla Complex, Bandra East,Mumbai 400051, a) We hereby authorise b) We hereby authorise We understand and agree that OFF-UStransactions will be dynamically routed between the defuu~BBPOUsbyBBPCU, ANDlOR c) In supersession of our earlier instruction authorising 3 294 172826/2018/SO(COMPUTER CELL) N?C/f) 'NH.rdt.>,'·T~;.n~':IJf~lpt ,q.;r'l NA710NAL PA'rMf:Nrs CORPO/(AT/(.)Nor: INt.X4 Procedural Guidelines for all OFF-UStransactions across all payment modes and channels as decided by us in consultation with the BBPOUnow being authorised, for the following reason: ------_ ------_ ------_ ..------_ --_..------ We understand and agree that OFF-UStransactions will be dynamically routed between the default BBPOUsby BBPCU. We agree that NPCI may notify both the aforesaid BBPOUs of our decision. The change of <_>default/additional default BBPOU/sshould becomeeffective not exceeding60 calendar daysfrom the date of receipt of this letter at BBPCU.We agree that change in default/ additional default BBPOU would only be effected after all pending complaints and disputes in relation our bills that pertain to the BBPOUbeing replaced are resolved. Note: • Fill in 'a' and delete 'b' and 'c' if only one default BBPOUis being outhorised; • Fill in 'b' and delete 'a' and 'c' if another BBPOUisbeing authorised asdefault BBPOUin addition to the existing default BBPOU; • Fill in 'a' and 'b' and delete 'c' if both default and additional default BBPOUsare being authorised; • Fill in 'c' and delete 'a' and 'b' if a default! additional default BBPOUis being replaced with another BBPOU; • Fill in 'b' and 'c' and delete 'a' if the existing default BBPOUis being replaced and an additional default BBPOUis also being authorised.) 2. All complaints relating to processedtransactions received by BBPCUand/or above-said BBPOU(s)or Customerside BBPOUswould be attended to expeditiously by us and all possible help will be provided to the BBPOUsin this regard. 3. Anychangein the default / additional default BBPOUwould be intimated to you in writing in advance in accordancewith the BBPSProceduralGuidelinesand the changein default! additional default BBPOU would only be effected after all pending complaints and disputes in relation our bills that pertain to the BBPOUbeing replaced are resolved. Yoursfaithfully, Authorized Signatory (Name: ) (Designation: ) (Contact no: ) (Email: ) Date: 4 295 172826/2018/SO(COMPUTER CELL) MINISTRIES I DEPARTMENTS SCORECARD TEMPLATE FOR PROMOTION OF DIGITAL PAYMENTS S. ORGANISATION TRANSACTIONS (WEIGHTAGE 50 %) INFRASTRUCTURE (WEIGHTAGE 50 %) TOTAL NO. SCORE NO. OF TOTAL NO.OF ! DIGITAL BHARATfBHIM OR BHIM (Cf2 + Ff4 TRANSACTIONS DIGITAL TRANSACTIONS (WEIGHTAGE 25 %) INTEGRATION +G) TRANSACTIONS (%) f BBPSON· BOARDING NO. OF BHARAT/BHIM ENABLED (YES = 251 TOUCHPOINTS OR ENABLED TOUCHPOINTS NO=O) TOUCHPOINTS (%) (WEIGHTAGE 25%) A B C 0 E F G I 1. 2. 3. 4. 5. 6. 7. , 8. 9. , 10 I Note 1. Cheques and Demand drafts are not considered as digital payments. 2. Additional information regarding closed group pre-paid instruments such as prepaid cards issued by oil marketing companies, Metro, Railways,SRTC etc may also be provided. 3. Column G: Bharat Bill Payment System (BBPS) applicable only for Billers ( 12.5 for BHIM and 12.5for BBPS)