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BOOKLET ON MEASUREMENT OF DIGITAL PAYMENTS

Trends, Issues and Challenges

Revised and Updated as on 9thMay 2017

Foreword A Committee on Digital Payments was constituted by the Ministry of , Department of Economic Affairs under my Chairmanship to inter-alia recommend measures of promotion of Digital Payments Ecosystem in the country.

The committee submitted its final report to Hon’ble Finance Minister in December 2016. One of the key recommendations of this committee is related to the development of a metric for Digital Payments.

As a follow-up to this recommendation I constituted a group of Stakeholders under my chairmanship to prepare a document on the measurement issues of Digital Payments.

Based on the inputs received from RBI and Office of CAG, a booklet was prepared by the group on this subject which was presented to Secretary, MeitY and Secretary, Department of Economic Affairs in the review meeting on the aforesaid Committee’s report held on 11th April 2017 at Ministry of Finance. The review meeting was chaired by Secretary, Department of Economic Affairs.

This booklet has now been revised and updated with inputs received from RBI and CAG. The revised and updated booklet inter-alia provides valuable information on the trends in Digital Payments in 2016-17. This has captured the impact of demonetization on the growth of Digital Payments across various segments.

Shri, B.N. Satpathy, Senior Consultant, NISG, MeitY and Shri. Suneet Mohan, Young Professional, NITI Aayog have played a key role in assisting me in revising and updating this booklet. This updated booklet will provide policy makers with suitable inputs for appropriate intervention for promoting Digital Payments.

Ratan P. Watal Principal Adviser NITI Aayog Government of

Revised and Updated Booklet on Digital Payments

Highlights

1. Background:  One of the key recommendations of the Committee on Digital Payments related to development of a metric for Digital Payments (R-13 under the category of regulatory measures).

2. Action taken:  A group of stakeholders from different departments and RBI was constituted under my chairmanship to facilitate the work relating to development of metric.

3. Booklet:  A booklet was prepared on the subject, and was presented to Secretary, MeitY and Secretary DEA, Ministry of Finance on 11th April 2017 in the review meeting on Digital Payments which was held under the chairmanship of Secretary DEA.  The booklet inter-alia dealt with legal definition of digital payments as provided under the Payment and Settlement Act, growth trends in digital payments and issues relating to charges and challenges for collecting and disseminating disaggregated data.  Primary objective of this booklet was to provide official data on the growth of digital payments so that policy makers can monitor the progress of digital payments in the country. This is very critical in the light of the fact that the government has set a target of 25 billion transactions to be achieved in a year.  As per this booklet, the volume of transactions in 2015-16 was around 7.0 billion registering a growth of 49.4 % over 2015-16

4. Revised and Updated Booklet  The booklet has now been revised with updated data from RBI and CAG.

5. Trends (2001-2017)  The volume of overall payments accelerated over the period 2011-12 to 2015-16, recording a compound average annual growth rate (CAGR) of over 28 per cent.  The nominal value of overall payments also increased every year over 2011-12 to 2015-16, though not steadily, recording a CAGR of nearly 13 per cent; the growth rate of nominal value of payments was placed at over 24 per cent in 2016-17.  The value of overall payments was around 13 to 14 times of GDP during this period, largely reflecting the impact of SIFMIs.  Contrastingly, the outstanding of currency in circulation which hovered around 12 per cent of GDP during 2011-12 to 2015-16, declined to 8.8 per cent during 2016- 17, reflecting the impact of the demonetization, partially offset by the on-going re- monetization process.

6. Summary Trends (2016-17)  Volume of Digital Transaction in 2016-17 touched 10.9 Billion registering a growth of about 55% over 2015-16. The corresponding growth rate in 2015-16 was 49.4%.  The PPI Segment in volume of transactions registered a spectacular growth of 162.5% during 2016-17 as compared to 137.8% in 2015-16.  In value terms the total Digital Payments touched a value of Rs. 2141071 Billion registering a growth of 24.2% in 2016-17.  IMPS segment have exhibited robust growth of 153.5% in 2016-17 in value terms.

Table of Contents

S.No. Topic Page No.

1 Digital Payments – Definition 1

2 Technologies of Digital Payments 1

3 Trends of Digital Payments (2011-12 to 2016-17) 3

4 Trends during 2016-17 6

5 State Government Budgetary Transactions in Digital Mode 9

6 Authorized Payment Service Providers – List 9

7 Digital Payments Service Charges 9

8 Proposed Classification of Data 12

9 Proposed Indicators for Metric 12

Annexure

1 Payment System Indicators - Annual Turnover 13

2 Extent of Digital Payment 16

3 Authorized Payment Service Providers 18

List of permitted to issue pre-paid cards in India as on March 4 33 03, 2017

5 Glossary 34

Measurement of Digital Payments

1. Digital Payments – Definition In order to measure Digital Payments, it is necessary to define it in precise terms. The Payment and Settlement Act, 2007 has defined Digital Payments. As per this any “electronic funds transfer” means any transfer of funds which is initiated by a person by way of instruction, authorisation or order to a to debit or an account maintained with that bank through electronic means and includes point of sale transfers; transactions, direct deposits or withdrawal of funds, transfers initiated by telephone, and, card payment.

2. Technologies of Digital Payments As per the definition under the Act, measurement of Digital Payments is dependent on the underlined technologies. The various technologies used for electronic transfer of funds are as follows: *99#: The service works across all GSM service providers and handsets. IMPS: It is available on Basic mobile phones, Smart phones, via Internet and at ATMs NEFT: Individuals, firms or corporates maintaining accounts with a bank branch can transfer funds using NEFT. Even such individuals who do not have a (walk-in customers) can also deposit at the NEFT-enabled branches with instructions to transfer funds using NEFT. However, such cash remittances will be restricted to a maximum of Rs.50,000/- per transaction. Indo-Nepal Remittance Facility, a cross-border remittance scheme to transfer funds from India to Nepal is also available. NEFT operates in hourly batches. There are twelve settlements from 8 am to 7 pm on week days and six settlements from 8 am to 1 pm on Saturdays. Any transaction initiated after a designated settlement time would have to wait till the next designated settlement time. The customers can initiate transactions through various channels mobile, internet, etc. Also the customer has the to initiate NEFT by walking into a branch by making a request. The NEFT transactions can be initiated by a walk-in customer (not having an account with the bank / branch) as well. As regards technical requirements of the banks, the banks need to have the minimum technical requirements as prescribed in the NEFT procedural guidelines. In the Statement on Developmental and Regulatory Policies issued by the RBI on April 06, 2017, it was stated that the NEFT settlement cycle would be reduced from hourly batches to half hourly batches. Consequently, from July 10, 2017, 11 additional settlement batches

1 would be introduced at 8.30 am onwards, taking the total number of half hourly settlement batches during the day to 23. This is to enhance the efficiency of the NEFT system and add to customer convenience. The starting batch at 8.00 am and closing batch at 7.00 pm remain the same. The return discipline also remain the same, i.e., B+2 hours (settlement batch time two hours) as per the existing practice. RTGS: The RTGS system is primarily meant for large value transactions. The minimum amount to be remitted through RTGS is ` 2 lakh. However, for inter-bank funds transfer there is a floor. This facility can also be used by individuals and corporate. Under normal circumstances the beneficiary branches are expected to receive the funds in real time as soon as funds are transferred by the remitting bank. The beneficiary bank has to credit the beneficiary's account within 30 minutes of receiving the funds transfer message. The customers can initiate transactions through various channels mobile, internet, etc. Also the customer has the option to initiate RTGS by walking into a branch by making a request. PPI: Individuals/ Organizations are permitted to hold pre-paid payment instruments for purchase of goods and services, including . The pre-paid payment instrument issuers shall put in place adequate information and data infrastructure and systems for prevention and detection of frauds. It is necessary to have a centralized database/ MIS by the issuer to prevent multiple purchase of payment instruments at different locations, leading to circumvention of limits, if any, prescribed for such payment instruments. : The services shall be restricted only to customers of banks and/or holders of debit/credit cards issued as per the extant Reserve guidelines. Information Security is most critical to the business of mobile banking services and its underlying operations. Therefore, technology used for mobile banking must be secure and should ensure confidentiality, integrity, authenticity and non-reputability. Transactions up to Rs 5000/- 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. The dependence of banks on mobile banking service providers may place knowledge of bank systems and customers in a public domain. Mobile banking system may also make the banks dependent on small firms (i.e mobile banking service providers) with high employee turnover. It is therefore imperative that sensitive customer data, and security and integrity of transactions are protected. It is necessary that the mobile banking servers at the bank’s end or at the mobile banking service provider’s end, if any, should be certified by an accredited external agency. In addition, banks should conduct regular information security on the mobile banking systems to ensure complete security. For mobile banking facilities which do

2 not contain the phone number as identity, a separate login ID and password is desirable to ensure proper authentication.

3. Trends of Digital Payments (2011-12 to 2016-17) India’s payment system - particularly, its digital payments system - has been evolving robustly over the past many years, spurred by developments in information and communication technology, and fostered and in consonance with the path envisioned by the . As part of this vision, the National Payments Council of India (NPCI) that was established in 2009–has been spearheading the development of the payments system. Important milestones attained in this overall process of development of the payments system include the introduction of MICR clearing in the early 1980s, Electronic Clearing Service and Electronic Funds Transfer in the 1990s, issuance of credit and debit cards by banks in the 1990s, the National Financial Switch in 2003 that brought about interconnectivity of ATMs across the country, the RTGS and NEFT in 2004, the Truncation System (CTS) in 2008, the second factor authentication for the ‘card not present’ transaction in 2009and the new RTGS with enhanced features in 2013 [Mundra (2015)]. Furthermore, non-bank entities have been introduced in the issuance of pre-paid instruments (PPI), including mobile and digital wallets. These measures have been complemented by significant initiatives by the NPCI including the launching of grid-wise operations of CTS, interoperability on NACH, IMPS, NFS, RuPay (a domestic card payment network), APBS and AEPS (which are an important part of the financial inclusion process), National Unified USSD Platform (NUUP), UPI and the BHIM application[Gandhi (2016)]. Many of these achievements, particularly given their pan-India coverage, are indeed notable from a cross-country perspective, including the ‘T or T+1’ clearing of enabled by CTS and the clearing house infrastructure, the NEFT, the IMPS, mobile banking/payments and the security aspects of card payments. Against this backdrop, a brief discussion of the evolving trends in the payment system over the past five years or so is set out below. The narrative on annual trends that covers the period 2011-12 to 2016-17, is based on data provided by the RBI and NPCI. Keeping in view the fact that the year 2016-17 witnessed a major ‘structural break’ in November following the demonetisation of specified bank notes, a separate analysis based on monthly data (provided by the RBI and NPCI) is also provided.

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Trends during 2011-12 to 2016-17

The payment system could be bifurcated into Systemically Important Infrastructure (SIFMIs) and the retail payments segment. SFMIs covers the RTGS and financial market clearing (CBLO, Government securities clearing and forex clearing) while the retail segment covers paper clearing (CTS, MICR and non-MICR), retail electronic clearing (ECS, NEFT, IMPS and NACH) and card payments [transactions using credit and debit cards at point of sale terminals – and not ATMs –and pre-paid instruments (PPI)]. The volume of overall payments accelerated over the period 2011-12 to 2015-16,recording a compound average annual growth rate (CAGR) of over 28 per cent (Annexure 1). The volume of overall payments increased by over 55 per cent in 2016-17.The nominal value of overall payments also increased every year over 2011-12 to 2015-16, though not steadily, recording a CAGR of nearly 13 per cent; the growth rate of nominal value of payments was placed at over 24 per cent in 2016-17.The value of overall payments was around 13 to 14 times of GDP during this period, largely reflecting the impact of SIFMIs. Contrastingly, the outstanding stock of currency in circulation which hovered around 12 per cent of GDP during 2011-12 to 2015-16, declined to 8.8 per cent during 2016-17, reflecting the impact of the demonetisation, partially offset by the on-going re-monetisation process. The components of the payments system exhibited differential growth rates in both volume and value terms over this period. The retail payments segment accounted for as much as 98 to 99 per cent of total volumes (Charts 1 and 2). Of this, the share of paper clearing which formed over half the total volume in 2011-12, steadily dropped to 16 per cent in 2015-16 and further to 11 per cent in 2016-17, with a corresponding increase in the combined share of electronic clearing and cards. Within the latter category, NACH, PPIs and, to some extent, IMPS have shown impressive increases in their shares in the total volume in recent years. NACH, in fact, accounted for the largest share (nearly 20 per cent) of the total volume in 2015-16. The share of NACH dropped to 18.4 per cent in the following year, even as that of PPIs increased sharply to 18 cent while that of debit cards accounted for the largest share of 22 per cent. The share of credit cards, however, declined further to below 10 per cent of the total volume of payments in 2016-17. The share of ECS (following the migration of bulk payments to NACH) and, of late, that of NEFT have also been dipping over the years.

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Chart 1: Shares in Total Volume of Payments 120

100

80

60 percent 40

20

0 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

SIFMIs Paper Clearing Retail Electronic Clearing Card Payments

Chart 2: Share of Retail Electronic Clearing and Cards in Total Volume of Payments 100.0

80.0

60.0

40.0 percent

20.0

0.0 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

ECS EFT/NEFT IMPS NACH Credit Cards Debit Cards PPIs

SIFMIs, on the other hand, accounted for around 89 per cent of the total value of payments system over 2011-12 to 2016-17, with the retail segment forming the balance of around 11 per cent (Charts 3 and 4). Within the retail segment, while the share of NEFT showed an increase over the years, those of the remaining components were small, if not negligible, masking the otherwise robust growth in the value of transactions undertaken via debit cards and NACH.

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Chart 3: Shares in Total Value of Payments 110

100

90

80 percent 70

60

50 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

SIFMIs Paper Clearing Retail Electronic Clearing Card Payments

Chart 4: Share of Retail Electronic Clearing and Cards in Total Value of Payments 7.0 6.0 5.0 4.0

3.0 percent 2.0 1.0 0.0 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

ECS EFT/NEFT IMPS NACH Credit Cards Debit Cards PPIs

4. Trends during 2016-17  The demonetization of specified bank notes effected in early November 2016 as also the series of measures announced by the Government and the RBI to promote the movement from cash to non-cash modes of transactions, impacted the volume and value of payments systems.  The year-on-year (y-o-y) growth rate of total volume of payments system that had averaged around 29 per cent during April to October 2016, shot up to nearly 60 per cent in November and then further to as much as 110 per cent in December 2016. In the

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subsequent three months, the growth rates moderated even as these remained high and staged a renewed thrust in March (Chart 5).  Transactions relating to IMPS, PPI and exhibited growth rates in triple digits in the post-demonetisation phase.  The volume of paper clearing, which had been persistently showing negative growth till October, rebounded to an average y-o-y growth rate of over 33 per cent in the subsequent months  The growth rate of NEFT volumes too showed an impressive increase, post- demonetisation.  The y-o-y growth rate of the total value of the payments system which had averaged around 22 per cent during April to October 2016, increased sharply to over 57 per cent in November, but then began decelerating steadily to around 10 per cent in February 2017, before recording a surge of over 20 per cent in the last month of the fiscal year (Chart 6)  The value of SIFMIs transactions– the predominant component - showed an upsurge of over 60 per cent in November 2016 largely reflecting G-Sec clearing and RTGS operations. The y-o-y growth rates in the following months were relatively lower, notwithstanding some resurgence in March 2017. In fact, RTGS volumes and values usually tend to increase in March.  The y-o-y growth rate of the value of debit card transactions increased sharply to triple digits from November 2016, touching nearly 300 per cent in the following month, before moderating subsequently. The growth rates of the value of PPI transactions too were in triple digits in December 2016 and January 2017.  The y-o-y growth rates of the value of IMPS transactions remained in triple digits right through the year, touching nearly 200 per cent in January 2017.

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Chart 5: Y-o-Y Growth Rates in Volume of Payments in 2016-17 200.0 400.0

350.0 150.0 300.0 100.0 250.0

50.0 200.0

150.0 percent 0.0 percent Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 100.0 -50.0 50.0 -100.0 0.0

-150.0 -50.0

SIFMIs Paper Clearing ECS NEFT IMPS NACH Total Debit Card (RHS) PPI (RHS)

Chart 6: Y-o-Y Growth Rates in Value of Payments in 2016-17 300.0 350.0

250.0 300.0 200.0 250.0 150.0

100.0 200.0

50.0 percent 150.0 percent

0.0 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 100.0 -50.0 50.0 -100.0

-150.0 0.0

SIFMIs Paper Clearing ECS NEFT NACH Credit Card PPI Total IMPS (RHS) Debit Card (RHS)

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5. State Government Budgetary transactions in Digital Mode Based on the data received from the office of CAG, the budgetary transactions of 16 State Governments in Digital Mode for which data is available is given in the table at Annexure 2. This shows the varying degree of digitization of the payment ecosystem of 16 State Governments.

6. Authorized Payment Service Providers – List Certificates of Authorisation are issued by the Reserve Bank of India under the Payment and Settlement Systems Act, 2007 for Setting up and Operating Payment System in India. The total number of Authorized Service Providers is 84. The list of these 84 'Payment System Operators ‘authorised by the Reserve Bank of India to set up and operate in India under the Payment and Settlement Systems Act, 2007 is placed at Annexure 3. The List of 52 banks permitted to issue pre-paid cards in India as on March 03, 2017 is placed at Annexure 4. The List of RTGS/NEFT participants as authorized by RBI is available on following hyperlinks: RTGS: https://rbidocs.rbi.org.in/rdocs/RTGS/DOCs/RTGEB0815.XLSX NEFT: https://www.rbi.org.in/Scripts/bs_viewcontent.aspx?Id=112

7. Digital Payments Service Charges One of the Major issues impacting Digital Transactions relate to Charges on Digital Payments. The charges as applicable to various modes of Digital Payments are as follows:

RTGS Service Charges The RTGS service charges would consist of monthly membership fee and processing charges per transaction, as follows:

(i) Monthly Membership Fee: The membership fee structure is as follows: Type of Entities Monthly Membership Fee (exclusive of service ) Scheduled Commercial Banks ₹ 5,000 (SCB) Banks other than SCBs, Primary Dealers, clearing entities, other ₹ 2,500 special entities, etc.

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(ii) Processing charge per transaction: Every outward transaction will attract flat processing charge at the earlier cap of ₹0.50 (exclusive of service tax) and a time varying charge as under:

Time of Settlement at the Reserve Time varying charge per outward Sr. Bank of India transaction(in addition to flat no. processing charge) (exclusive of service From To tax) 1 08:00 hours 11:00 hours Nil 2 After 11:00 hours 13:00 hours ₹ 2.00 3 After 13:00 hours 16:30 hours ₹ 5.00 4 After 16:30 hours - ₹ 10.00

The maximum charges that can be recovered by a member (if it so desires) from its customers will remain unchanged as under:

RTGS Transaction Maximum Customer Charges (exclusive of service tax) Inward transactions Free Outward transactions ₹ 25 + applicable time varying charge, subject to a ₹ 2 lakh to ₹ 5 lakh maximum of ₹ 30/-. ₹ 50 + applicable time varying charge, subject to a Above ₹ 5 lakh maximum of ₹ 55/-.

NEFT Service Charges Maximum Charges Value Band (exclusive of service tax) Amounts up to ` 10,000/- ` 2.50/- Amounts from ` 10,001/- to ` 1 lakh ` 5/- Amounts above ` 1 lakh up to ` 2 lakh ` 15/- Amounts above ` 2 lakh ` 25/-

Debit Cards (effective upto March 31, 2017) i. For transactions upto ₹ 1000/-, MDR shall be capped at 0.25% of the transaction value. ii. For transactions above ₹ 1000/- and upto ₹ 2000/-, MDR shall be capped at 0.5% of the transaction value.

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Debit Cards – Effective from April 1, 2017 Merchant Discount Rate (MDR) for debit card transactions S. No Merchant Category (as a % of transaction value) Physical POS infrastructure Digital POS

1. Small merchants Not exceeding 0.40% Not exceeding 0.30% Special category of 2. Not exceeding 0.40% Not exceeding 0.30% merchants All other category of 3. merchants (other than Not exceeding 0.95% Not exceeding 0.85% Government)  Flat fee of INR 5 for transaction value INR 1 to INR1000  Flat fee of INR 10 for transaction value INR 1001 Government 4. to INR 2000 Transactions  MDR not exceeding 0.50% for transaction value above INR 2001 with cap of INR 250 per transaction

As stated in the Statement on Developmental and Regulatory Policies issued by the RBI on April 06, 2017, the RBI issued a draft circular on “Rationalisation of Merchant Discount Rate (MDR) for Debit Card Transactions” on February 16, 2017. The extensive feedback received, including from the Government, banks, card networks, the Indian Banks’ Association, the Payments Council of India, private entities and individuals are being examined. Until the issuance of final guidelines, the extant instructions on MDR for debit card transactions will continue to apply. PPI/Mobile Banking/IMPS/USSD – No charges are prescribed by RBI and the charges are determined by the entity. However upto March 31, 2017, As a temporary measure, it has now been decided that all participating banks and Prepaid Payment Instrument (PPI) issuers shall not levy any charges on customers for transactions upto ₹ 1000 settled on the Immediate Payment Service (IMPS), USSD-based *99# and Unified Payment Interface (UPI) systems. As stated in the Statement on Developmental and Regulatory Policies issued by the RBI on April 06, 2017, the RBI had issued a draft circular on “Master Directions on Issuance and Operation of Pre-paid Payment Instruments (PPIs) in India” on March 20, 2017 with the deadline for comments as March 31, 2017. Based on the requests received from various quarters, the timeline for feedback/comments has been extended until April 15, 2017. The final guidelines for PPIs would be issued by end- May 2017.

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8. Proposed Classifications of Data One of the challenges facing the dissemination of data on Digital Payments is absence of disaggregated data on Digital Payments. Currently data on Digital Payments is available at an aggregate level. In order to make data available at disaggregate level the following classification is proposed for consideration of RBI  Data on Digital Payments as per (Banks, Vendors, NPCI. Telcos etc.)  Data on Digital Payments as per Payment Instruments (PPI, RTGS, NEFT etc.)  Data on Digital Payments as per Payment Destination (P to M, M to M, P to P etc.)  Data on Digital Payments as per User (Household, Business, Industry, Agriculture, Services etc.)  Data on Digital Payments as per Value (RTGS, NEFT)  Data on Digital Payments as per Area (Urban, Rural, State, District, Country etc.)

9. Proposed Indicators for Metric Once the data made available by RBI as per the classification proposed in the forgoing chapter the metric can be built around the following indicators

Aggregate  Total transactions – Monthly (Cash, Non-Cash) Indicators  Non Cash Transactions – Monthly (Digital , Non-Digital) and Annual  Total Non-Cash Transactions per Inhabitant – Annual

 Digital Transactions by Classification – Monthly/Quarterly/Annual  Payment Service Provider (Banks, Vendors, NPCI. Telcos etc.) Disaggregated  Payment Instruments (PPI, RTGS, NEFT etc.) Indicators  Payment Destination (P to M, M to M, P to P etc.)  User (Household, Business, Industry, Agriculture, Services etc.)  Value (RTGS, NEFT)  Area (Urban, Rural, State, District, Country etc.)

Cross Country  Digital Transaction by Country – Annual Indicators  Cash GDP Ratio by Country – Annual  Cost of Cash as % of GDP – India

*****

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Annexure 1

Payment System Indicators - Annual Turnover Item Volume (million) Growth Rate

CAGR 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2015-16 2016-17 (2011-16) Systemically Important Financial Market infrastructures (SIFMIs) 1. RTGS 55 68.5 81.1 92.8 98.3 107.8 15.6 5.9 9.7

Total Financial Markets Clearing (2+3+4) 1.9 2.3 2.6 3.0 3.1 3.6 13.0 3.3 15.2

2. CBLO 0.1 0.2 0.2 0.2 0.2 0.2 18.9 0.0 8.9

3. Government Securities Clearing 0.4 0.7 0.9 1.0 1.0 1.4 25.7 0.0 42.7

4. Forex Clearing 1.3 1.4 1.5 1.8 1.9 1.9 10.0 5.6 1.4

Total SIFMIs (1 to 4) 56.9 70.8 83.7 95.7 101.4 111.4 15.5 6.0 9.9

Retail Payments

Total Paper Clearing (5+6+7) 1341.9 1313.7 1257.3 1195.8 1096.4 1206.7 -4.9 -8.3 10.1

5. CTS 180 275 591.4 964.9 958.4 1111.9 51.9 -0.7 16.0

6. MICR Clearing 934.9 823.3 440.1 22.4 0 - -

7. Non-MICR Clearing 227 215.3 225.9 208.5 138 94.8 -11.7 -33.8 -31.3

Total Retail Electronic Clearing (8+9+10+11+12) 512.5 694.1 1108.3 1687.4 3141.6 4161.8 57.3 86.2 32.5

8. ECS DR 164.7 176.5 192.9 226 224.8 8.8 8.1 -0.5 -96.1

9. ECS CR 121.5 122.2 152.5 115.3 39 10.1 -24.7 -66.2 -74.1

10. EFT/NEFT 226.1 394.1 661 927.6 1252.9 1622.1 53.4 35.1 29.5

11. Immediate Payment Service (IMPS) 0.1 1.2 15.4 78.4 220.8 506.7 585.5 181.6 129.5

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12. National (NACH) - - 86.5 340.2 1404.1 2014.1 302.9 312.7 43.4

Total Card Payments (13+14+15) 678.1 932.6 1261.8 1737.7 2707.2 5448.7 41.4 55.8 101.3

13. Credit Cards 320 396.6 509.1 615.1 785.7 1085.7 25.2 27.7 38.2

14. Debit Cards 327.5 469.1 619.1 808.1 1173.5 2399.3 37.6 45.2 104.5

15. Prepaid Payment Instruments (PPIs) 30.6 66.9 133.6 314.5 748 1963.7 122.4 137.8 162.5

Total Retail Payments (5 to 15) 2532.4 2940.3 3627.4 4620.9 6945.2 10817.2 28.7 50.3 55.8

Total Retail Electronic Clearing and Total Card 1190.6 1626.7 2370.1 3425.1 5848.8 9610.5 48.9 70.8 64.3 Payments Grand Total (1 to 15) 2589.3 3011.1 3711.1 4716.6 7046.6 10928.6 28.4 49.4 55.1

Value (Rs billion) Growth Rate

Systemically Important Financial Market infrastructures (SIFMIs) 1. RTGS 539308 676841 734252 754032 824578 981904 11.2 9.4 19.1

Total Financial Markets Clearing (2+3+4) 406071 501599 621570 672456 721094 938876 15.4 7.2 30.2

2. CBLO 111554 120480 175262 167646 178335 229528 12.4 6.4 28.7

3. Government Securities Clearing 72521 119948 161848 179372 183502 287091 26.1 2.3 56.5

4. Forex Clearing 221996 261170 284460 325438 359257 422256 12.8 10.4 17.5

Total SIFMIs (1 to 4) 945379 1178440 1355822 1426488 1545672 1920780 13.1 8.4 24.3

Retail Payments

Total Paper Clearing (5+6+7) 99012 100182 93316 85439 81861 80958 -4.6 -4.2 -1.1

5. CTS 15104 21780 44691 66770 69889 74035 46.7 4.7 5.9

6. MICR Clearing 65093 57504 30943 1850 0 _ -

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7. Non-MICR Clearing 18815 20898 17682 16819 11972 6923 -10.7 -28.8 -42.2

Total Retail Electronic Clearing (8+9+10+11+12) 20575 31881 47856 65366 91408 131917 45.2 39.8 44.3

8. ECS DR 834 1083 1268 1740 1652 39 18.6 -5.1 -97.6

9. ECS CR 1838 1771 2492 2019 1059 144 -12.9 -47.5 -86.4

10. EFT/NEFT 17904 29022 43786 59804 83273 120040 46.9 39.2 44.2

11. Immediate Payment Service (IMPS) 0.4 4.3 96 582 1622 4111 698.0 178.7 153.5

12. National Automated Clearing House (NACH) - - 215 1221 3802 7583 320.5 211.4 99.5

Total Card Payments (13+14+15) 1563 2052 2575 3325 4484 7416 69.4 34.9 65.4

13. Credit Cards 966 1230 1540 1899 2407 3279 25.6 26.8 36.2

14. Debit Cards 534 743 955 1213 1589 3299 31.3 31.0 107.6

15. Prepaid Payment Instruments (PPIs) 62 79 81 212 488 838 67.5 130.2 71.7

Total Retail Payments (5 to 15) 121150 134115 143748 154129 177752 220291 10.1 15.3 23.9

Total Retail Electronic Clearing and Total Card 22138 33933 50431 68691 95892 139333 44.3 39.6 45.3 Payments Grand Total (1 to 15) 1066529 1312555 1499570 1580617 1723425 2141071 12.7 9.0 24.2

Note: 1. Real time gross settlement (RTGS) system includes customer and inter-bank transactions only. 2. Settlement of collateralised borrowing and lending obligation (CBLO), government securities clearing and forex transactions are through the Clearing Corporation of India Ltd. (CCIL). 3. Consequent to total cheque volume migrating to the cheque truncation system (CTS), there is no magnetic ink character recognition (MICR) cheque processing centre (CPC) location in the country as of now. 4. The figures for cards are for transactions at point of sale (POS) terminals only. 5. The National Automated Clearing House (NACH) system was started by the National Payments Corporation of India (NPCI) on December 29, 2012, to facilitate inter-bank, high volume, electronic transactions which are repetitive and periodic in nature. 6. ECS: Electronic clearing service; DR: Debit; CR: Credit; NEFT: National electronic funds transfer. 7. Figures in the columns might not add up to the total due to rounding off. 8. CAGR: Compound Average Annual Growth Rate 9. CAGR for NACH has been worked out for the period 2013-14 to 2015-16 Source: RBI. Provisional Data

15

Annexure 2

Extent of Digital Payment (all figures in crore)

S. Name of Expenditure made Year Budge Estimate Revised Estimate Actual Expenditure No the State digitally Revenue Capital Revenue Capital Revenue Capital Revenue Capital

1 Kerala 2014-15 71974.04 7439.97 73852.31 5928.04 71746.43 4997.68 71746.43 4997.68

2015-16 85259.12 10065.64 81834.21 7125.48 78689.47 8342.29 78689.47 8342.29 Maharashtr 2 2014-15 188126.00 41339.00 211487.00 50054.00 182707.00 39386.00 98614.00 3128.00 a

2015-16 207082.00 45547.00 234661.00 53437.00 197564.00 37540.00 116242.56 4367.32

3 Odisha 2014-15 62881.42 17258.17 50941.50 16067.52 51135.74 15544.08 51135.74 15544.08

2015-16 65838.99 18648.78 58683.26 20481.11 58805.71 20308.38 58805.71 20308.38

4 Punjab 2014-15 49146.31 6330.23 48982.74 4275.17 46613.49 3388.71 46608.25 3388.71

2015-16 52623.20 5592.32 53164.53 4798.77 50073.49 9028.01 50063.02 9028.01

5 Rajasthan 2014-15 105387.19 20564.87 100887.94 19152.75 94541.97 16102.69 40251.17 0.00

2015-16 110804.85 20760.29 112022.24 23347.88 106239.24 21985.26 48267.80 0.00 Digital payment has been 6 2014-15 5114.34 1822.35 5171.16 1909.85 3732.49 1094.32 initiated by the State Govt. Exact information 2015-16 4569.11 6036.36 4623.35 1518.73 3646.14 857.14 relating digital payment not readily available. 7 Uttar 2014-15 203310.18 86752.72 2277.73 1971.65 138301.41 48611.15 129439.82 24936.07 Pradesh 2015-16 230182.88 89526.34 25638.98 9701.20 166432.86 58125.09 148598.77 29554.69

8 Uttarakhan 2014-15 24907.64 7414.86 27107.80 9033.62 21163.70 4939.00 14368.47 1101.22 d 2015-16 25738.33 6954.31 28697.52 8783.18 23086.44 4217.38 16625.62 3499.06

9 West 2014-15 105978.20 15120.67 106827.98 13375.01 103651.61 9878.62 327.34 Bengal 2015-16 113100.22 15627.61 119304.30 15946.90 118827.26 12420.10 82889.76

10 Chhattisga 2014-15 48440.32 10487.80 ------39561.29 7969.30 37989.39 3750.49 rh 2015-16 57246.29 14235.15 ------43701.06 9359.92 42039.22 4809.95

11 Haryana 2014-15 53113.00 14517.00 56953.00 15028.00 49408.00 10410.00 4079.00 5989.00

2015-16 62306.00 15527.00 70365.00 17464.00 61047.00 13968.00 45926.00 8057.00

12 2014-15 110757.33 20013.78 108747.62 18880.05 103614.30 19622.30 4915.60 8.45

2015-16 115449.68 20563.62 116732.17 21133.91 117028.58 20713.03 5327.22 4.44 Uttar 13 2014-15 203310.18 86752.72 2277.73 1971.65 138301.41 Pradesh 48611.15 129439.82 24936.07

16

2015-16 230182.88 89526.34 25638.98 9701.20 166432.86 58125.09148148598.77 29554.69

14 Manipur 2014-15 7690.59 1997.24 9643.66 2834.89 7278.07 1606.54 7255.85 1606.54

2015-16 8038.27 1690.34 8564.61 2110.15 7412.61 1685.55 7386.63 1685.55

15 Bihar 2014-15 91765.43 25120.74 100254.89 31932.00 72569.98 22128.07 Nil Nil

2015-16 91208.11 29477.21 101667.38 31182.10 83615.94 28712.09 41089.23 43.40 Information not 16 Mizoram 2014-15 5764.40 1006.39 764.24 1391.20 5652.44 2119.18 furnished by the State Government Source: CAG

17

Annexure 3

Authorized Payment Service Providers – List

The list of 'Payment System Operators’ authorised by the Reserve Bank of India to set up and operate in India under the Payment and Settlement Systems Act, 2007 is as under:

Date of issue & Sr. Address of the Validity Period Name Payment System No. Principal Office (given in brackets) Financial Market Infrastructure i. Securities segment covering Govt Securities; The Managing ii. Collateralised Borrowing and Lending Director, 11.02.2009 obligations (CBLO); Clearing Corp. of iii. Forex Settlement Segment comprising of India, -do- The Clearing sub-segments 5th, 6th & 7th floor 1. Corporation of a. USD-INR segment, Trade World, -do- India Ltd. b. CLS segment – Continuous Linked “C” Wing Kamala Settlement city, SB Marg, -do- (Settlement of Cross Currency Deals), Lower Parel (West) -do- c. Forex Forward segment; Mumbai 400 013 iv. Rupee Derivatives Segment-Rupee denominated trades in IRS & FRA. Retail Payments Organisation i. National Financial Switch (NFS) The Chief Executive ii. Immediate Payment System (IMPS) Officer, 15.10.2009 iii. Affiliation of RuPay Cards (debit cards/ National Payments 12.10.2010 prepaid cards) issued by banks and co- Corporation of India, National Payments branded credit cards issued by non-banking 1001A, B wing, 10th 12.07.2012 2. Corporation of financial companies (NBFCs) or any other Floor, India entity approved by the RBI. The Capital, Bandra – 23.05.2013 iv. National Automatic Clearing House Kurla Complex, 11.01.2011 (ACH) Bandra (East), 21.09.2011 v. Aadhar Enabled Payments System (AEPS) Mumbai–400 051. vi. Operation of Cheque Truncation System Cards Payment Networks The Chief Executive Officer, Affiliation of credit cards/debit cards/prepaid American Express American Express cards issued by banks and co-branded credit 3. Banking Corp., Banking Corp., cards issued by non-banking financial 31.03.2009 USA 200 Vesey Street MC companies (NBFCs) or any other entity 01-39-12 New York, approved by the Reserve Bank of India. NY USA 10285. The Chief Executive Officer, Diners Club Diners Club International Ltd. Affiliation of credit card issued by banks or 4. International Ltd., 2500, any other entity approved by the Reserve 30.06.2010 USA Lake Cook Road Bank of India. River woods, Illinois (IL) – 60015, U S A.

18

Mastercard Asia/ Pacific Pte. Ltd., The Chief Executive Affiliation of credit cards/ debit cards/ Singapore (Earlier Officer, prepaid cards issued by banks and co- MasterCard Mastercard Asia/ branded credit cards issued by non-banking 5. International Pacific Pte. Ltd, 01.12.2014 financial companies (NBFCs) or any other Incorporated, 3 Fraser Street, DUO entity approved by the Reserve Bank of USA was Tower, #17-21/28, India. performing this Singapore 189352 activity) The Chief Executive Officer, National Payments Affiliation of RuPay Cards (debit cards/ Corporation of India, National Payments prepaid cards) issued by banks and co- 1001A, B wing, 10th Corporation of branded credit cards issued by non-banking 12.07.2012 Floor, India financial companies (NBFCs) or any other The Capital, Bandra- entity approved by the RBI. Kurla Complex, Bandra (East) Mumbai–400 051. Visa Worldwide The President Visa Pte. Limited, Worldwide Pte. Affiliation of credit cards/ debit cards/ Singapore (Earlier Limited, prepaid cards issued by banks and co- Visa International 6. 30 Raffles Place, branded credit cards issued by non-banking 01.04.2010 Service # 10-00 Chevron financial companies (NBFCs) or any other Association, USA House Singapore - entity approved by the RBI. was performing 048622 this activity) Cross border Money Transfer – in-bound only The Director Bahrain Financing Company, BSC (c), Bab AL Bahrain Financing Bahrain Building, Money Transfer Service (MTSS)– cross 7. Company, BSC Bab AL Bahrain border in-bound service (customer to 30.09.2009 (C) Avenue, Government customer) known as “EzRemit” Road, P.O Box 243 Manama, Bahrain The Chief Executive Continental Officer, MTSS- cross border in-bound service 28.04.2014 Exchange 6565, Knott Avenue, 8. (customer to customer) known as “Ria (Valid upto Solutions Inc, Buena Park, Money Transfer” 27.04.2019) USA California, 90620- USA The Chief Executive Fast Encash Officer, 03.04.2017 MTSS- cross border in-bound service 9. Money Transfer 144, High Street (Valid upto (customer to customer) Services Ltd. North, London E6 31.03.2020) 2HT The President Globle Foreign Exchange Global Foreign 30.09.2009 Inc, MTSS- cross border in-bound service 10. Exchange Inc., (Valid upto 420 Britannia Road (customer to customer) known as “Transfast” Canada 29.09.2018) East, Suite 200,

19

Mississauga, ON L4Z 3L5 Canada The President & Chief Executive MoneyGram Officer, MTSS- cross border in-bound service 25.05.2009 11. Payment Systems 1550 Utica Avenue (customer to customer) known as (Valid upto Inc, USA. South, Minneapolis, “MoneyGram or MoneyGram International” 31.05.2019) Minnesota 55416, U.S.A. The President, Royal Exchange (USA) Inc., 1155, 30.09.2009 Royal Exchange MTSS- cross border in-bound service 12. Green Street, (Valid upto (USA) Inc., USA (customer to customer) ISELIN, 30.06.2018) New Jersey- 08830, USA. The Managing Director & CEO, UAE Exchange Centre LLC, P.O No. MTSS- cross border in-bound service UAE Exchange 13. 13304, (customer to customer) known as “Xpress 30.09.2009 Centre LLC, UAE Building of Nassar Money” Bin Abdul Latiff Naïf Street Deira, Dubai, U A E The Group Managing Director, Wall Street Exchange Centre LLC, Wall Street MTSS- cross border in-bound service Central Office 14. Exchange Centre (customer to customer) known as “Instant 30.09.2009 Building, AI LLC, UAE Cash” Sabhkha, Naif Road P.O Box 3014, Deira, Dubai UAE. The Chief Executive Officer, Western Union Financial Services Inc, USA, Western Union Western Union MTSS- cross border in-bound service Financial Services 15. Financial Services (customer to customer) known as “Western 31.03.2009 Incorporated, Incorporated, Union or WU” USA 12500, East Belford Avenue, MSM23B7, Englewood, Colorado–80112, U S A ATM Networks The Chairman & Managing Director 16. Bank of India Bank of India, ‘BANCS’ – ATM network 12.08.2009 Star House C-5 ‘G’ Block,

20

BandraKurla Complex, Bandra (East), Mumbai- 400 051. The Managing Director, Euronet Services India Private Limited, Euronet Services 2nd Floor, Marwah 17. India Private – ATM Network 25.05.2009 House, Limited KrishanlalMarwah Marg, Andheri (E) Mumbai – 400 072. The Chief Executive Officer, National Payments Corporation of India, National Payments C-9, 8th Floor, RBI Corporation of National Financial Switch (NFS) 15.10.2009 Premises, India Bandra – Kurla Complex, Bandra East, Mumbai–400 051. The Chairman & Managing Director, Punjab National Punjab National Bilateral ATM sharing arrangement with 18. 05.04.2010 Bank Bank, 7, Everest Bank of Nepal BhikajiCama Place New Delhi 110049. The Chairman State i. State Bank Group Payment Bank of India State Bank of ii. State Bank Group ATM network 19. Corporate Centre, 12.08.2009 India iii. Agency Clearing System for State Bank Madam Cama Road Group Mumbai 400 021. The Chief Executive Officer; The ShamraoVithal The Co-operative Bank ShamraoVithal Ltd.; SVC Cache 24 Insta ATM Sharing 20. 30.06.2010 Co-operative Bank SVC Tower, Arrangement Ltd. Jawaharlal Nehru Road Vakola– Santacruz (East), Mumbai – 400 055. Pre-paid Payment Instruments The Chief Executive Officer, Aircel Smart Money 04.06.2015 Aircel Smart Limited, 21. Pre-paid Payment Instruments (Valid upto Money Limited 2nd and 5th Floor, 30.06.2020) Building No 10 A, DLF Cybercity, DLF Phase 2,

21

Gurgaon, Haryana The Chief Executive Officer, Amazon Online Distribution Services Private Amazon Online Limited, #26/1, 22.03.2017 Distribution 22. Brigade Gateway, Pre-paid Payment Instruments (Valid upto Services Private World Trade Centre, 31.03.2022) Limited 8th floor, Dr.Rajkumar Road, Malleswaram (West), – 560 055 The Chief Executive Officer, Appnit Technologies Private Appnit Limited, 403, 4th 22.03.2017 23. Technologies Floor, Tower A, Pre-paid Payment Instruments (Valid Upto Private Limited LogixTechnova 31.03.2022) Centre, Sector 32, , Uttar Pradesh – 201 301 The Chief Executive Officer, Bajaj Finance Limited, 4th Floor, Bajaj Finserv 08.02.2017 Bajaj Finance 24. Corporate Office, Pre-paid Payment Instruments (Valid upto Limited Off. Pune- 31.03.2022) Ahmednagar Road, Viman Nagar, Pune – 411014 The Chief Executive Officer, Card Pro Solutions 04.06.2015 Card Pro Pvt. Ltd., 25. Pre-paid Payment Instruments (Valid upto Solutions Pvt. Ltd. 135, A to Z Industrial 30.06.2020) Estate, G K Marg, Lower Parel, Mumbai 400 013 The Chief Executive Officer, Citrus Payment solutions Pvt. Ltd., 18.10.2013 Citrus Payment 302, Pre-paid Payment Instruments known as 26. (Valid upto Solutions Pvt. Ltd. Swati Building, ‘Citrus Cash’ 18.10.2018) North Avenue Road, Off Linking Road, Santa Cruz West, Mumbai 400 054 The Chief Executive Delhi Integrated Officer, 27.08.2015 Multi- Modal Delhi Integrated 27. Pre-paid Payment Instruments (Valid upto Transit System Multi-Modal Transit 30.09.2020) Limited System Limited, 1st floor,

22

MaharanaPratap ISBT Building, Kashmere Gate, Delhi – 110 006 The Chief Executive Officer, Delhi Metro Rail Corporation Delhi Metro Rail 20.02.2017 Limited, Metro Pre-paid Payment Instruments for Mass 28. Corporation (Valid upto Bhawan, Fire Brigade Transit Systems Limited 31.03.2022) Lane, Barakhamba Road, New Delhi - 110001 The Chief Executive Officer, DigitSecure India Private Limited, Plot No: 1303 and 23.07.2012 DigitSecure India Pre-paid Payment Instruments e-wallet 29. 1304, 4th Floor, (Valid upto Private Limited known as ‘HotRemit' Khanamet, Hitech 22.01.2018) City, Ayappa Society, Madhapur, Hyderabad - 500 081. The Managing Director & Chief Executive Officer, Edenred (India) Meal and gift paper vouchers, meal and Edenred (India) 29.10.2009 Private Limited – cafeteria cards, gift cards. The products are 30. Private Ltd; (Valid upto nee Accor mainly under the brand name ‘Ticket/Ticket Camera House, 30.04.2020) Services Pvt. Ltd. Restaurant/Ticket Compliments’ Majiwade Village Road Majiwade, Thane (W) 400 601. The Chief Executive Officer, Eko India Financial Eko India Services Pvt. Ltd., 25.03.2015 31. Financial Services 3rd Floor, Phase II, Pre-paid Payment Instruments (Valid upto Private Limited Plot No 34, 31.03.2020) Institutional Area, Sector 44 Gurgaon 122 003. The Chief Executive Officer, E-Meditek Global Private 07.10.2016 E-Meditek Global 32. Limited, Plot No. Pre-paid Payment Instruments (Valid upto Private Limited 577, UdyogVihar, 31.12.2021) Phase –V, Gurgaon, Haryana - 122016 Freecharge The Chief Executive Payment Officer, Technologies Freecharge Payment 14.07.2016 Private limited Technologies Private 33. Pre-paid Payment Instruments (Valid upto (previously Limited, 30.09.2021) Klickpay Payment 362-363, ASF Services Private Centre, Limited) UdyogVihar Phase –

23

IV, Sector - 18, Gurgaon – 122016, Haryana FinoPaytech Ltd. The Chief Executive (Earlier Alpha Officer, Payment Services FINO Paytech Ltd., India Pvt. Shree Sawan 14.08.2015 Ltd.(erstwhile 34. Knowledge Park, Pre-paid Payment Instruments (Valid upto Nokia Mobile 2nd Floor, D 507 30.09.2017) Payment Services TTC Indl. Area India Pvt. Ltd.) MIDC Turbhe, Navi was performing Mumbai this activity The Director, GI Technology Private Limited, 29.10.2009 GI Technology Pre-paid Payment Instruments Card known 35. C-9, Thiru-Vi-Ka (Valid upto Private Limited as 'I Cash' Industrial Estate- 31.10.2018) Guindy, Chennai – 600 032 The Chief Executive Officer, Hip Bar Private Limited, 34, 22.08.2016 Hip Bar Private 36. (First Floor), 4th Pre-paid Payment Instruments (Valid upto Limited Main Road, 30.09.2021) Gandhi Nagar, Adyar, Chennai – 600 020 The Chief Executive officer, Idea Mobile Commerce Services Idea Mobile 25.11.2013 Ltd., Pre-paid Payment Instruments known as 37. Commerce (Valid upto 5th Floor, “Windsor”, ‘Idea Money’ Services Ltd. 24.11.2018) Off C.S.T. Road, Kalina, Santacruz (East), Mumbai 400 098 The Chief Executive Officer, India Transact Services Limited, ITSL, 30.05.2014 India Transact Pre-paid Payment Instruments known as 38. 14th Floor, Tower 3, (Valid upto Services Limited, ‘Ongo’ Indiabulls Finance 31.05.2019) Center, S. B. Marg Elphinstone Road (W) Mumbai 400 013 The Chief Executive Pre-paid Payment Instruments known as ‘Pay 25.08.2009 Officer, 39. Itz Cash Card Ltd. on web’, ‘Mobile Wallet’ and ‘Itz Cash (Valid upto Itz Cash Card BSNL trust Card’ 30.11.2017) Limited,

24

Top 14th floor, Times Tower, Kamala City, SenapatiBapat Marg, Lower Parel, Mumbai 400 013 The Chief Executive Officer KediaInfotech Ltd. 29.07.2015 KediaInfotech 518, 5th Floor Pre-paid Payment Instruments known as 40. (Valid upto Ltd. Swapnalok Complex ‘Etran Wallet’ 30.09.2020) S D Road Secunderabad 500 003 The Chief Executive Officer, LivQuik Technology LivQuik (India) Private 08.08.2016 Technology 41. Limited, Pre-paid Payment Instruments (Valid upto (India) Private 709, Maker 30.09.2021) Limited Chambers V, Nariman Point, Mumbai – 400 021 The Chief Executive Officer, Manappuram Finance Limited, 08.02.2017 Manappuram 42. Manappuram House, Pre-paid Payment Instruments (Valid upto Finance Limited P.O. Valappad, 31.03.2022) Thrissur, Kerala - 680 567 The Chief Executive Officer, MMP Mobi Wallet Payment Systems MMP Mobi 30.12.2011 Ltd.; Pre-paid Payment Instruments known as 43. Wallet Payment (Valid upto A, E& F Blocks ‘mRupee’ Systems Limited 31.12.2018) Voltas Premises, T B Kadam Marg, Chinchpokli, Mumbai 400 033 The Chief Executive Officer, Plot No 38, Sector 32 30.06.2014 Mpurse Services Institutional Area, Pre-paid Payment Instruments known as 44. (Valid upto Pvt. Ltd. Opposite ‘mpurse wallet’ 30.06.2019) MedantaMedicity Hospital, Gurgaon 122 001 The Managing Director, Muthoot Vehicle Pre-paid Payment Instruments e-wallet 29.10.2009 Muthoot Vehicle & 45. & Asset Finance known as ‘Muthoot Money’ and m-wallet (Valid upto Asset Finance Ltd. Ltd. known as ‘Muthoot wallet’ 31.12.2018) 1st Floor, Cochin Dental Clinic Bldg.

25

Market Road, Towards Kombara, Kochi 682 014 The Chief Executive Officer, My Mobile Payments Limited, 24.10.2011 My Mobile Pre-paid Payment Instruments known as 46. 7th Floor, MET (Valid upto Payments Limited ‘MOM’ Complex, Opp. 31.10.2018) Lilavati Hospital, Bandra – West, Mumbai 400 050 The Chief Executive Officer, Nucleus 22.03.2017 Nucleus Software Software Exports 47. Pre-paid Payment Instruments (Valid upto Exports Limited Limited, 33-35, 31.03.2019) Thyagraj Market, New Delhi – 110 003 The Chief Executive Officer, One97 One97 07.08.2013 Communications Mobile based Pre-paid Payment Instruments 48. Communications (Valid upto Ltd., m- Wallet known as ‘ wallet’ Ltd. 06.08.2018) B- 121, Sector 5, Noida, 201 301 Uttar Pradesh The Chief Executive Officer, One Mobikwik Systems Pvt. One Mobikwik 18.07.2013 Limited, Pre-paid Payment Instruments known as 49. Systems Private (Valid upto 758, 1st Floor, ‘Mobikwik Wallet’ Limited 17.07.2018) UdyogVihar, Phase - V, Gurgaon-122 016 Haryana The Group President, (India) Pvt. Ltd.; 18.01.2010 Oxigen Services Pre-paid Payment Instruments known as 50. 257, UdyogVihar, (Valid upto (India) Pvt. Ltd. ‘Oxigen Wallets’ Phase-1, 31.12.2018) Gurgaon 122 016 Haryana. The Chief Executive Officer, 04.06.2015 Paul FincapPvt. Paul FincapPvt. Ltd., 51. Pre-paid Payment Instruments (Valid upto Ltd. SCO 829-830, Sector 30.06.2020) 22-A, Chandigarh 160 022 The Chief Executive Officer, 25.07.2016 PayU Payments 52. PayU Payments Pre-paid Payment Instruments (Valid upto Private Limited Private Limited, 30.09.2021) Pearl Tower, 4th

26

Floor, Plot No. 51, Institutional Area, Sector 32, Gurgaon, Haryana The Chief Executive Officer, Pay Point India Network Private Pay Point India Limited, 03.04.2012 Pre-paid Payment Instruments known as 'Pay 53. Network Private 108-109, B-Wing, (Valid upto Pointz' Limited Everest Grande, 30.06.2017) Opp. Ahura Centre, Mahakali Road, Andheri (East), Mumbai 400093 The Chief Executive Officer, UnitechInfospace, 10.03.2017 Private 54. 2nd and 3rd Floor, Pre-paid Payment Instruments (Valid upto Limited Building – 2, Plot 31.03.2022) No. B2, Sector – 62, Noida – 201301 The Chief Executive Officer, Premium eBusiness Ventures Private Premium Limited, 18.12.2014 eBusiness 55. 42, Navketan Pre-paid Payment Instruments (Valid upto Ventures Private Industrial Estate, 31.12.2019) Limited Mahakali Caves Road, Andheri (East) Mumbai 400 093 The Chief Executive Officer, Phonepe Private Phonepe Private Limited, A 25, 25.08.2014 Limited (formerly Pre-paid Payment Instruments known as 56. Mohan Cooperative (Valid upto named as FX Mart ‘PhonePe’ Industrial Area, 31.08.2019) Pvt. Ltd) South Delhi, New Delhi – 110 044 India The Chief Executive Officer, Pyro Telecommunications 30.01.2014 Pyro Networks Ltd., 8-2-293/82, Pre-paid Payment Instruments m-wallet 57. (Valid upto Pvt. Ltd. Plot No. 264/A-31, known as ‘SpeedPay’ 31.03.2019) Road # 92, Jubilee Hills, Hyderabad- 500033, Andhra Pradesh 58. QwikCilver The Chief Executive Pre-paid Payment Instruments, Co-branded 06.08.2013

27

Solutions Pvt. Ltd. Officer, gift card known as ‘Issued by QwikCilver’ (Valid upto QwikCilver Solutions 05.08.2018) Pvt. Ltd., #104, 1st Main, Vijay Jatti Building, 3rd Floor, 5th Block, Kormangla Industrial Estate,;Bangalore 560095. The Chief Executive Officer, Reliance Payment Solution Limited, 18.09.2013 Reliance Payment 5th Floor, Court Pre-paid Payment Instruments known as ‘Jio 59. (Valid upto Solution Limited House, Money’ 17.09.2018) LokmanyaTilak Marg, Dhobi Talao, Mumbai 400 002 The Chief Executive Officer, Smart Payment 30.06.2010 Smart Payment Pre-paid Payment Instruments known as 60. Solutions Pvt. Ltd. (Valid upto Solutions Pvt. Ltd. ‘PayCash’ 6/35, WEA Karol 31.12.2018) Bagh, New Delhi 110 005. The Chief Executive Officer, Sodexo SVC India Pvt. Ltd., Paper based vouchers known as Meal, Nesco Complex, Gate Catering, Gift Gold, Gift Exclusive and Gift Sodexo SVC India 61. No. 3, Advantage. Electronic based vouchers, gift 25.08.2009 Pvt. Ltd Indabrator Building, passes known as Meal Card, Premium E Gift Western Express Exclusive E gift and Say Rewards Highway Goregaon (East); Mumbai 400063. The Chief Executive Officer, Ltd., 09.04.2015 19A & 19B, 62. Spice Digital Ltd Pre-paid Payment Instruments (Valid up to 4th Floor, Global 30.06.2020) Knowledge Park, Sector 125, Noida – 201301 The Chief Executive Officer, Supreme Securities 20.09.2016 Supreme Limited, 3rd Floor, 63. Pre-paid Payment Instruments (Valid up to Securities Limited R.D.Chambers, 30.09.2021) 16/11, Arya Samaj Road, Karol Bagh, New Delhi 64. The Chief Executive Pre-paid Payment Instruments (m-wallet) 19.09.2013

28

Limited Officer, known as ‘MoboMoney’ (Valid upto (Earlier CanvasM Tech Mahindra 18.09.2018) Technologies Ltd. Limited, A- 20, was performing Sector 60, Noida 201 this activity) 301 The Chief Executive Officer, Transaction Analysts Transaction 07.03.2014 (India) Private Pre-paid Payment Instruments known as 65. Analysts (India) (Valid upto Limited, ‘Transaction Assured’ Private Ltd. 31.03.2019) 59, 3rd Cross, 17th Main, BTM Layout, Bangalore 560 068 The Chief Executive Officer, Transcorp Transcorp 26.08.2016 International Limited, 66. International Pre-paid Payment Instruments (Valid upto Plot No 3, HAF Limited 30.09.2021) Pocket, Sector 18A, Phase II, Dwarka, New Delhi. The Chief Executive officer, TranServ Private Limited, High Tech Plaza, Office No 2 Ground 22.02.2016 TranServ Private Pre-paid Payment Instruments known as 67. Floor, (Valid upto Limited ‘UDIO’ Off Mahakali Caves 31.03.2021) Road, Opp. Shanti Nagar Bus Stop, Andheri (East) Mumbai – 400 093 The Chief Executive Officer, Tri O Tech Solutions Private Tri O Tech 18.01.2017 Limited, Plot No D- 68. Solutions Private Pre-paid Payment Instruments (Valid upto 50, 1st and 2nd Floor, Ltd. 31.03.2022) UdyogVihar, Phase V, Gurgaon - 122016 The Country Head- India, UAE Exchange & Financial Services UAE Exchange & Ltd., 29.10.2009 Pre-paid Payment Instruments m-wallet 69. Financial Services Third Floor, Airline (Valid upto known as ‘X-Pay Ltd. Building 31.10.2017) Opp. Maharaja college Ground, M G Road, Kochi 682 011. 70. Virgosoft IT The Chief Executive Pre-paid Payment Instruments 27.02.2017

29

Services Private Officer, Virgosoft IT (Valid upto Limited Services Private 31.03.2022) Limited, Plot No E1, Block No B1, Rajindra House, 1st Floor, Mohan Co- operative Industrial Estate, Mathura Road, New Delhi - 110044 The Chief Executive Officer, Vodafone m-pesa Vodafone m-pesa Limited Limited, (Earlier Mobile 07.11.2014 Peninsula Corporate Pre-paid Payment Instruments known as 71. Commerce (Valid upto Park, ‘Vodafone M-pesa’ Solutions Ltd. was 30.11.2017) GanpatraoKadam performing this Marg, activity) Lower Parel, Mumbai - 400 013 The Chief Executive Officer, Weizmann Impex Service Enterprise Weizmann Impex Ltd. 214, 11.12.2015 72. Service Enterprise Empire House Pre-paid Payment Instruments (Valid upto Limited (Basement) Dr D N 31.12.2020) Road, Ent A K Nayak Marg, Fort, Mumbai – 400 001 The Chief Executive Officer, Y-Cash Software Solutions Private Limited, Y-Cash Software 15.03.2012 VGR Essor, 3rd Pre-paid Payment Instruments m-wallet 73. Solutions Private (Valid upto Floor, No 1140, known as ‘Y-Pay Cash’ Limited 31.03.2019) 17th Cross, 7th Sector, H.S.R. Layout, Bangalore 560 102 Karnataka The Chief Executive Officer, YeldiSoftcom Private 27.02.2017 YeldiSoftcom Limited, AJ-227 (Old 74. Pre-paid Payment Instruments (Valid upto Private Limited No AJ-08), Shanthi 31.03.2019) Colony Main Road, Anna Nagar, Chennai - 600040 The Director, 29.10.2009 ZipCash Card Pre-paid Payment Instruments known as 75. ZipCash Card (Valid upto Services Pvt. Ltd. 'ZipCash Coupons' Services Pvt. Ltd., 31.10.2018)

30

323, Corporate Centre, Nirmal Lifestyle, LBS Marg, Mulund(West) Mumbai 400 080 White Label ATM Operators The Chairman & Managing Director 601-602, B-wing, 30.06.2014 AGS Transact Trade World 76. Installation and operation of WLAs (Valid upto Technologies Ltd. Kamala City, 30.06.2019) SenapatiBapat Marg Lower Parel (W) Mumbai 400 013 The Chief Executive Officer, BTI Payments Pvt. Ltd. 12.02.2014 BTI Payments Pvt. 77. No 16/1, 4th Floor, Installation and operation of WLAs (Valid upto Ltd. Wings Cambridge 31.03.2019) Road, Halasaru, Bangalore- 560 008 The Managing Director, Hitachi Payment Services Pvt. Ltd., 3rd Floor, Silver 25.11.2013 Hitachi Payment Metropolis, Installation and operation of WLAs known 78. (Valid upto Services Pvt. Ltd. Jai Coach as ‘Money Spot’ 31.12.2018) Compound, Western Express Highway, Goregaon East, Mumbai 400 063. The Managing Director, Muthoot Finance Ltd. 30.01.2014 Muthoot Finance 79. 2nd Floor, Installation and operation of WLAs (Valid upto Ltd. Muthoot Chambers, 31.03.2019) Banerji Road, Kochi- 682018, Kerala The Chief Executive Officer, RiddiSiddhi Bullions Limited - Bullion 15.05.2014 RiddiSiddhi 80. House, Installation and operation of WLAs (Valid upto Bullions Limited 115, TambaKatta, 31.05.2019) Opp. Dagina Bazar, Pydhonie, Mumbai- 400003 SREI The Chief Executive 25.03.2014 81. Installation and operation of WLAs Infrastructure Officer, (Valid upto

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Finance Ltd., Srei Infrastructure 31.03.2019) Finance Ltd., Vishwakarma, 86C Topsia Road (South) Kolkata- 700046 The Chief Executive Officer; Tata Communications Tata Payment Solutions 03.05.2013 Communications 82. Limited; Installation and operation of WLAs (Valid upto Payment Solutions Plot No. C- 21, B 30.06.2018) Ltd. Block, Bandra Complex, Bandra East, Mumbai- 400098. The Managing Director, Vakrangee Limited, Vakrangee House, Plot No 66, 23.01.2014 Vakrangee 83. Marol Co-op Installation and operation of WLAs (Valid upto Limited Industrial Estate, 31.03.2019) Off M.V.Road, Marol, Andheri (East) Mumbai-400 059 Instant Money Transfer The Chief Executive Officer Empays Payment Systems India Pvt. Empays Payment Limited 17.11.2014 84. Systems India Pvt. 216 The Empire Instant Money Transfer known as ‘IMT’ (Valid upto Ltd. Business Centre, 16.11.2019) Empire Business Park, SenapatiBapat Marg, Lower Parel, Mumbai – 400 013 Source: RBI

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Annexure 4

List of banks permitted to issue pre-paid cards in India as on March 03, 2017

S No. Name of the Banks 26 IndusInd Bank Limited 1 Airtel Ltd. 27 Ltd. 2 28 KarurVysya Bank Ltd. American Express Banking 29 Ltd. 3 Corporation 30 Ltd. 4 31 Oriental Bank of Commerce 5 Au Limited 32 Limited 6 Limited 33 Punjab 7 34 Punjab & Sind Bank 8 Bank of India 35 South Ltd. 9 36 Bank 10 Bank PLC 37 State Bank of Bikaner & Jaipur 11 38 12 of India 39 13 Citi Bank N.A. 40 14 Ltd. 41 15 42 16 DBS Bank Ltd. 43 17 44 Tamilnad Mercantile Bank Ltd. 18 DCB Bank Ltd. 45 The Limited Equitas Small Finance Bank 46 The Limited 19 Limited The New India Co-operative Bank 47 20 First Rand Bank Ltd 21 HDFC Bank Limited 48 The Ratnakar Bank Ltd. 22 ICICI Bank Limited 49 UCO Bank 23 IDBI Bank Ltd. 50 24 Indian Bank 51 25 52 Ltd. Source: RBI

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Glossary 1. National electronic funds transfer (NEFT) is a nation-wide payment system facilitating one-to-one funds transfer. Under this Scheme, individuals, firms and corporates can electronically transfer funds from any bank branch to any individual, firm or corporate having an account with any other bank branch in the country participating in the Scheme. Under NEFT, the transactions are processed and settled in batches. There is no limit – either minimum or maximum – on the amount of funds that could be transferred using NEFT. However, for cash-based remittances, the maximum amount per transaction is limited to ₹ 50,000. https://rbi.org.in/Scripts/FAQView.aspx?Id=60.

2. Immediate Payment Service (IMPS) offers an instant, 24X7, interbank electronic fund transfer service through mobile phones. IMPS transfers money instantly within banks across India through mobile, internet and ATMs. This facility is provided by NPCI through its existing NFS switch.http://www.npci.org.in/documents/IMPS_FAQs.pdf.

3. Cheque Truncation System (CTS) is the process that obviates the need to move the physical instruments across bank branches. This reduces the time required for their collection and brings elegance to the entire activity of cheque processing.https://rbi.org.in/Scripts/FAQView.aspx?Id=63.

4. National Automated Clearing House (NACH) implemented by NPCI is a web based solution for making bulk transactions towards distribution of subsidies, dividends, interest, salary, pension etc. and also for bulk transactions towards collection of payments pertaining to telephone, electricity, water, , investments in mutual funds, premium etc.http://www.npci.org.in/clearingBackground.aspx.

5. Unified Payments Interface (UPI) is a system that, through a universal application for transaction, connects multiple bank accounts into a single mobile application (of any participating bank) for immediate money transfer through mobile device round the clock 24x7 and 365 days. It uses a single mobile application for accessing different bank accounts. Recently NPCI has launched a front-end app called BHIM that can be downloaded on mobiles to use UPI for fund transfer. http://www.npci.org.in/UPI_Background.aspx.

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6. Unstructured Supplementary Service Data (USSD) service of NPCI caters to the need for immediate low value remittances. The USSD service brings together diverse ecosystem partners such as banks & telecom service providers and allows customers to access financial services by dialling *99# from their mobile registered with the bank. The service works across all GSM service providers all types of handsets – smart phones and feature phones. http://www.npci.org.in/documents/FAQs-NUUP.pdf.

7. Real Time Gross Settlement (RTGS) which can be defined as the continuous (real- time) settlement of funds transfers individually on an order by order basis (without netting). 'Real Time' means the processing of instructions at the time they are received rather than at some later time; 'Gross Settlement' means the settlement of funds transfer instructions occurs individually (on an instruction by instruction basis). Considering that the funds settlement takes place in the books of the Reserve Bank of India, the payments are final and irrevocable.

8. Pre-paid Payment Instruments (PPI) are payment instruments that facilitate purchase of goods and services, including funds transfer, against the value stored on such instruments. The value stored on such instruments represents the value paid for by the holders by cash, by debit to a bank account, or by credit card. The pre-paid instruments can be issued as smart cards, magnetic cards, internet accounts, internet wallets, mobile accounts, mobile wallets, paper vouchers and any such instrument which can be used to access the pre-paid amount (collectively called Prepaid Payment Instruments hereafter). The pre-paid payment instruments that can be issued in the country are classified under three categories viz. (i) Closed system payment instruments (ii) Semi-closed system payment instruments and (iii) Open system payment instruments.

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