vakrangee kendra urban with atm franchisee opportunity - web.pdf

8/20/2019 Vakrangee Kendra Urban with ATM Franchisee Opportunity - Web.pdf

1/56

We Provide the Last Mile Banking

Vakrangee Kendra

Opportunity

Powering the Prime Minister’s

Social Security Scheme’s


2/56

Vakrangee Limited 2

This presentation has been prepared by Vakrangee Limited (“Vakrangee” or “VL” or the “Company”) solely for your

information and for your use and may not be taken away, reproduced, redistributed or passed on, directly or indirectly, to

any other person (whether within or outside your organization or firm) or published in whole or in part, for any purpose. By

attending this presentation, you are agreeing to be bound by the foregoing restrictions and to maintain absolute

confidentiality regarding the information disclosed in these materials.

The information contained in this presentation does not constitute or form any part of any offer, invitation or

recommendation to purchase or subscribe for any securities in any jurisdiction, and neither the issue of the information nor

anything contained herein shall form the basis of, or be relied upon in connection with, any contract or commitment on the

part of any person to proceed with any transaction. The information contained in these materials has not been

independently verified. No representation or warranty, express or implied, is made and no reliance should be placed on the

accuracy, fairness or completeness of the information presented or contained in these materials. Any forward-looking

statements in this presentation are subject to risks and uncertainties that could cause actual results to differ materially from

those that may be inferred to being expressed in, or implied by, such statements. Such forward-looking statements are not

indicative or guarantees of future performance. Any forward-looking statements, projections and industry data made by

third parties included in this presentation are not adopted by the Company and the Company is not responsible for such

third party statements and projections.

This presentation may not be all inclusive and may not contain all of the information that you may consider material. The

information presented or contained in these materials is subject to change without notice and its accuracy is not

guaranteed. Neither the Company nor any of its affiliates, advisers or representatives accepts liability whatsoever for any

loss howsoever arising from any information presented or contained in these materials.

THIS PRESENTATION IS NOT AN OFFER OF SECURITIES FOR SALE IN THE UNITED STATES OR ELSEWHERE.

2

Disclaimer


3/56

Table of Contents

Company Overview

Vakrangee Kendra

Banking Business

White Label ATM

Regulatory Clearances

Vakrangee Kendra Technology

Vakrangee Kendra Operations


4/56

Vakrangee Limited

Company Overview


5/56

Vakrangee Limited

• India’s one of the leading E-Governance player, functioning as systems integrator and end-to-end service providerfor various E-Governance projects over two decades.

• India’s leading enrolment agency for UIDAI Project.

• Continuously evolved over the years and moved up the value chain from being a sub-contractor to a consortium

partner to an independent bidder for various E-Governance projects leading to leadership position and higher

margins.

PEDIGREE & EXECUTION CAPABILITY

PAST

Sub Contractor

EVOLUTION PHASEPartner

(Consortium Basis)

PRESENT

Prime/Leading Player

FUTURE

Technology Intensive Retail Transformation

Sector Focus: IT / E-Governance

Sector Focus: Efficient delivery of various services & products – Banking, Insurance,White Label ATMs, Decongestion Branches, eGovernance, eCommerce. (Leverage the

existing infrastructure and resources in geographies where company has already been

present executing various e-governance projects).

• Financial Inclusion: Exclusive mandate (as Common BC) from banks, under RBI and MoF, for 5 + 2 years to setup &

manage bank branches in the states of Maharashtra, Rajasthan & Delhi. Expanding to 12 more states under

“Pradhan Mantri Jan Dhan Yojana” to target around 35,000 ultra small branches in rural areas and 15,000 de-

congestion branches in urban/semi urban areas.

• White Label ATM: License from RBI to open a minimum 15,000 White Label ATMs over three years across India.

• Decongestion Branch: Open branches to decongest bank branch operations in urban and semi-urban areas.

BUSINESS TRANSFORMATION

About Us: Company Overview


6/56

Vakrangee Limited 6

Our Businesses

E-GOVERNANCE

Systems Integrator & End-to-End

Services Provider

VAKRANGEE KENDRA

Business Correspondent (BC)

Bank Branches

VAKRANGEE KENDRA

White Label ATMs (WLA)

• More than 20 years of consistent

execution experience.

• Business Evolution: Sub-contractor

to Consortium Partner to Prime /Independent Bidder.

• Current Projects: (under NeGP)

• UID - Unique Identification

Project

• SSA - Sarva Siksha Abhiyan

• PDS - Public Distribution System

• RSBY -Rashtriya Swasthya Bima

Yojana• IGRS - Inspector General of

Registration & Stamps

• PMS / DMS - Electoral Data

• Setup & manage 50,000 BC bank

branches across 16 states by FY17,

under Common BC and National BC

agreements with various publicsector & private banks.

• 35,000 rural & 15,000 urban BC

bank branches.

• Offer 33 different banking services

as outlined by RBI, earning

transaction fee from respective

banks.

• Permitted to offer various services(Insurance, eCommerce &

eGovernance) and products from

these BC branches.

• Received License from RBI to setup

& manage minimum 15,000 WLAs

across India over next 3 years.

• Earning transaction fee fromfinancial & non-financial

transactions.

• Other revenue generating avenues

like OOH advertisements and value

added services.


7/56Vakrangee Limited 7

Last 3 Year Financials

Shareholding Pattern – Dec 2014

As on 01.04.15 (BSE)

Market cap (Rs. Mn) 54,401.3

Price (Rs.) 108.05

No. of shares outstanding (Mn) 503.48

Face Value (Rs.) 1.00

52 wk. High-Low (Rs.) 154.00 – 93.75

• Vakrangee has been classified in the Specialty Retail

industry by Bombay Stock Exchange (BSE).

• Vakrangee is included in CNX 500 & BSE 200/500 &

Mid-Cap Index and is also included in MSCI Global

Small Cap Index on 30th May 2014.

• Vakrangee is also got included in Group ‘A’ stocks of

BSE.

• Group A classification is based on qualitative factors -

Corporate Governance, Compliance track record,

Responsible/Sustainable Investment etc. and

quantitative factors - market capitalisation, public

share holding, floating stock, trading volume etc.

13,578 15,52419,581

18.2% 25.0%

27.7%

18.0%

21.6%

28.3%

1 2 3

Series1 Series2 Series3

1

38.77%

2

3.17%

3

7.31%

4

50.75%

Financial Overview &

Shareholding Structure



Awards and Accolades Certifications

• ET-500 Companies for 2013 as published by ET

• Nominated (top 5) for the best CEO (IT & Its) by Business Today

in January 2014

• 26th in the Deloitte Technology Fast 50 companies in India, 2012

• 18th in the Deloitte Technology Fast 50 companies in India, 2011

• 226th rank in Deloitte Fastest 500 growing Asia Pacific

companies in 2011

• CA. Business Leader - SME (3rd Rank) of the Year Award, 2008

to the Chairman by Institute of Chartered Accountants of India

• Economic Times ET 500 best companies in India in 2006-07

8

Awards and Certifications


9/56

Vakrangee Limited

Vakrangee Kendra – BankingBusiness



Vakrangee Kendra for CBI Vakrangee Kendra for UBI

Vakrangee Kendra for BoB Vakrangee Kendra for PNB

10

Vakrangee Kendra and ATM



Vakrangee Kendra is a revolution that will change the

lives of Indian citizens providing various services underone roof

All services in Vakrangee Kendra are technologydriven, real time, fully secure and accessible round

the clock

http://www.youtube.com/watch?v=a0O8tCcGeB4http://www.youtube.com/watch?v=a0O8tCcGeB4http://www.youtube.com/watch?v=a0O8tCcGeB4http://www.youtube.com/watch?v=a0O8tCcGeB4http://www.youtube.com/watch?v=a0O8tCcGeB4http://www.youtube.com/watch?v=a0O8tCcGeB4http://www.youtube.com/watch?v=a0O8tCcGeB4http://www.youtube.com/watch?v=a0O8tCcGeB4http://www.youtube.com/watch?v=a0O8tCcGeB4



Vakrangee Kendra:

Scope of Services

Banking Business

Correspondent

Services

Insurance

eCommerce Services

eGovernance Services ATM Services

• Mobile Recharge

• DTH Top-up

• eCommerce Portals

• Account Opening• Cash Withdrawal

• Cash Deposit

• Fund Transfer

• Financial

Transactions

• Non-Financial

Transactions

• UID Enrollment• UID Updation

• Utility Bill Payments

• Other Govmt.

Services

• LIC

• NIA

• Pension



Vakrangee and Pradhan Mantri

Jan Dhan Yojana

“Jan Dhan Yojana is at the core of our

philosophy of 'Sabka Saath, Sabka Vikas' and

we will work towards its success.”

— Narendra Modi (@narendramodi) August

25, 2014

Bank accounts for each household is a nationalpriority for us. We need to rise to the occasion

& successfully overcome this challenge.

— Narendra Modi (@narendramodi) August

25, 2014

The scheme will cover both urban and rural areas of India

Two bank accounts per household will be opened

Every household will have two Ru-Pay Cards increasingviability of ATM

Vakrangee is best positioned as a Business Correspondent for multiple banks to speed up

the scheme with its large experience and technology backed systems



Vakrangee and Pradhan Mantri

Jan Suraksha Yojana



eGovernance - Government to

Customer Services

From time to time more eGovernance services will be added under Vakrangee Kendra.All such services are subject to prior approval of respective Governments.

Aadhar Enrolment

Direct Benefit Transfer

Electricity Bill Payment

Birth/Death/Caste/Land Record Certificate

Pension

Child Scholarship etc


16/56

Vakrangee Limited 16

First of its kind Banking Business

Correspondent Service

e-KYC basedAccountOpening

No paperbased KYC

documents orforms

required asapproved by

RBI

Paperless

Alltransactionsare securely

authenticated

throughAadhaar

Real Time

BankingCustomersconnected

directlythrough

micro-ATM toBank’s CBS

Interoperable

At aVakrangee BCoutlet of anintegrated

bank,customers of

multiplebanks can be

served


17/56


Vakrangee Kendra – Financial

Inclusion Engine

InstantElectronic

AccountOpening (e-KYC)

InterOperableBanking

BiometricBanking(AEPS)

Secure – AadhaarBased Authentication

Inter Bank A/C to A/Ctransfer

Fast Account Opening


18/56


Banking Services permitted in a

Vakrangee Kendra

Jan Dhan Yojana Bank A/C Opening

Deposit in Savings A/C (Also AEPS)

Withdrawal from Savings A/C

Remittances - A/C to A/C

Transactions – ONUS and OFFUS

Deposit in Recurring A/C

Withdrawal from Recurring A/C


19/56


Potential Banking Facilitation

Services

Savings A/C Opening

Recurring Deposit A/C Opening

Current A/C Opening

Fixed Deposit (TDR/STDR)

Retail Loans – Disbursement/Repayment

Overdraft

Kisan Credit Card – Disbursement / Repayment

Gramin Credit Card – Disbursement / Repayment

Self Help/Joint Liability Group Management

Recovery in NPA Accounts – Substandard/Doubtful


20/56


Associated Banks

1. State Bank of India (SBI)

2. Allahabad Bank

3. Bank of Maharashtra

(BOM)

4. Central Bank of India (CBI)

5. Bank of Baroda (BOB)

6. Union Bank of India (UBI)

7. Bank of India (BOI)

8. Punjab National Bank

(PNB)

9. MGB (RRB of BoM)

10. BRKGB (RRB of BoB)

11. KGSGB (RRB of UBI)

12. BUPGB (RRB of BoB)

13. RMGB (RRB of SBBJ)

14. VKGB (RRB of BoI)


21/56


Insurance

Vakrangee Limitedis a corporateagent for LIC and

NIA providingInsurance servicesacross India.

LIC includes its fullrange of Micro andConventional

policies

NIA includes vehicleinsurance, fire/crop

and other generalinsurance products


22/56


eCommerce Services

eCommerce Services Mobile Recharge

New Mobile Connection

DTH Recharge

Other services are inthe pipeline and will

be introduced in thefuture

E-Commerce Portal - WhiteGoods, Garments, etc.

Mobile Hardware andAccessories

BSE/NSE Terminal etc.


23/56

Vakrangee Limited

Vakrangee Kendra – White Label ATM


24/56


White Label ATM Opportunity:

India has one of the lowest ATM Penetration

ATM PENETRATION IN INDIA: ONE OF THE LOWEST

• There is huge opportunity for ATM growth through the

white label model.

• As on Feb 2015, India had ~ 190,000 ATMs. It is expected to

cross 350,000 ATMs by 2017 in India.

• RBI WLA license to Vakrangee –

• Set up minimum of 5,000 WLAs every year for 3 years

• Maintain rural (Tier III to VI) to urban (Tier I & II) ratio

of 2:1 (incl. minimum of 10% to be set up in Tier V & VI)

• Co-located WLA annexed to urban Vakrangee Kendra to exploit revenue and cost synergies.• AEPS / Biometric authentication to provide flexibility of accessing ATM either through fingerprint or bank card.

• Co-located urban branch will help in building the account / card base, thus improving the viability of WLA.

• Combination of owned model and franchisee model for the WLAs.

• Derive revenue from financial (Rs 15) & non financial (Rs 5) transactions, OOH advertisements and value added

services.

VAKRANGEE WLA STRATEGY

2,825

2,0481,854

1,660

1,278 1,186

634 599375

112

1 2 3 4 5 6 7 8 9 1 0

ATM per Mn Population


25/56


Efficient Customer Traffic

Management with Co-located WLA

• Around 32% of urban households do not have formal banking access.

• According to the 2011 study by Analysys Mason, a global think tank, the total transaction value of domestic

remittances in India stood at around Rs 794 bn in 2010 (80% directed from urban to rural India) and was expected

to cross Rs 1,000 bn by 2014, growing at 12% CAGR.

• Further, significant amount of remittances, especially by migrant population (with no bank account) happen

through unorganised route.

• Thus, the overall banking transaction activity at urban BC branches can be significantly higher compared to rural

BC branches.

FINANCIAL INCLUSION IS A MAJOR PROBLEM EVEN IN URBAN INDIA

EFFICIENT CUSTOMER TRAFFIC MANAGEMENT

THROUGH CO-LOCATED WHITE LABEL ATM

Vakrangee Kendra White Label ATM

• Cash Deposit

• Cash Remittance

• A/C to A/C

Remittance

• Other eGovernance

& eCommerceActivities

• Cash Withdrawal

• A/C Balance

Enquiry

• Mini Statement

In India, ATMsare currently

permitted by RBI

to only allow

cash withdrawals

and A/C balance

enquiries


26/56

Vakrangee Limited

Regulatory Clearances


27/56


Regulatory Clearances for all

Active Services

RBI Certificate of Authorization for White Label ATM

Master Services Agreement with Rajasthan Government for CSC

Local Service Provider for e-Mitra Project

Banking Business Correspondent Services for Maharashtra

Banking Business Correspondent Services for Rajasthan and Delhi

LIC Allotment of Corporate Agency Code and New India Assurance Agent License

National Banking Business Correspondent Services for Union Bank of India

National Banking Business Correspondent Services for Bank of India

National Banking Business Correspondent Services for Allahabad Bank

Business Associate to provide Telecomm Services for Idea Cellular across the country

http://localhost/var/www/apps/conversion/tmp/scratch_4/Certificate%20received%20from%20RBI%20towards%20WLA%20.pdfhttp://localhost/var/www/apps/conversion/tmp/scratch_4/MSA%20of%20Rajasthan%20CSC.pdfhttp://localhost/var/www/apps/conversion/tmp/scratch_4/LOI_eMITRA_Rajasthan.pdfhttp://localhost/var/www/apps/conversion/tmp/scratch_4/VFL_SBI_BC_Maharashtra1.pdfhttp://localhost/var/www/apps/conversion/tmp/scratch_4/VFL_BOB_BC_Rajasthan_Delhi1.pdfhttp://localhost/var/www/apps/conversion/tmp/scratch_4/LIC_Allotment%20of%20Agency%20Code.pdfhttp://localhost/var/www/apps/conversion/tmp/scratch_4/New%20India%20Assuarance_Agent%20Licence.pdfhttp://localhost/var/www/apps/conversion/tmp/scratch_4/Union%20Bank%20of%20India_National%20BC.PDFhttp://localhost/var/www/apps/conversion/tmp/scratch_4/Bank%20of%20India_Agreement_National%20BC.pdfhttp://localhost/var/www/apps/conversion/tmp/scratch_4/Allahabad%20Bank_Agreement_National%20BC.pdfhttp://localhost/var/www/apps/conversion/tmp/scratch_4/Agreement_IDEA%20CELLULAR%20LIMITED_opt.pdfhttp://localhost/var/www/apps/conversion/tmp/scratch_4/Agreement_IDEA%20CELLULAR%20LIMITED_opt.pdfhttp://localhost/var/www/apps/conversion/tmp/scratch_4/Allahabad%20Bank_Agreement_National%20BC.pdfhttp://localhost/var/www/apps/conversion/tmp/scratch_4/Allahabad%20Bank_Agreement_National%20BC.pdfhttp://localhost/var/www/apps/conversion/tmp/scratch_4/Bank%20of%20India_Agreement_National%20BC.pdfhttp://localhost/var/www/apps/conversion/tmp/scratch_4/Bank%20of%20India_Agreement_National%20BC.pdfhttp://localhost/var/www/apps/conversion/tmp/scratch_4/Bank%20of%20India_Agreement_National%20BC.pdfhttp://localhost/var/www/apps/conversion/tmp/scratch_4/Union%20Bank%20of%20India_National%20BC.PDFhttp://localhost/var/www/apps/conversion/tmp/scratch_4/Union%20Bank%20of%20India_National%20BC.PDFhttp://localhost/var/www/apps/conversion/tmp/scratch_4/New%20India%20Assuarance_Agent%20Licence.pdfhttp://localhost/var/www/apps/conversion/tmp/scratch_4/New%20India%20Assuarance_Agent%20Licence.pdfhttp://localhost/var/www/apps/conversion/tmp/scratch_4/LIC_Allotment%20of%20Agency%20Code.pdfhttp://localhost/var/www/apps/conversion/tmp/scratch_4/LIC_Allotment%20of%20Agency%20Code.pdfhttp://localhost/var/www/apps/conversion/tmp/scratch_4/VFL_BOB_BC_Rajasthan_Delhi1.pdfhttp://localhost/var/www/apps/conversion/tmp/scratch_4/VFL_SBI_BC_Maharashtra1.pdfhttp://localhost/var/www/apps/conversion/tmp/scratch_4/LOI_eMITRA_Rajasthan.pdfhttp://localhost/var/www/apps/conversion/tmp/scratch_4/LOI_eMITRA_Rajasthan.pdfhttp://localhost/var/www/apps/conversion/tmp/scratch_4/LOI_eMITRA_Rajasthan.pdfhttp://localhost/var/www/apps/conversion/tmp/scratch_4/LOI_eMITRA_Rajasthan.pdfhttp://localhost/var/www/apps/conversion/tmp/scratch_4/MSA%20of%20Rajasthan%20CSC.pdfhttp://localhost/var/www/apps/conversion/tmp/scratch_4/MSA%20of%20Rajasthan%20CSC.pdfhttp://localhost/var/www/apps/conversion/tmp/scratch_4/Certificate%20received%20from%20RBI%20towards%20WLA%20.pdfhttp://localhost/var/www/apps/conversion/tmp/scratch_4/Certificate%20received%20from%20RBI%20towards%20WLA%20.pdf


28/56


Vakrangee Kendra


29/56


Vakrangee Kendra


30/56


Urban Kendra Rural Kendra

30

Vakrangee Kendra


31/56


Visit of GM UBI, Mr. RP Mishra at Vakrangee Kendra Dakachaya, Indore

Vakrangee Kendra


32/56


Vakrangee Kendra

Mr. Arun Tiwari, CMD (UBI)

inaugurating Vakrangee MartOutlet in Varanasi

Bank of Maharashtra, CMD

inaugurating Vakrangee MartOutlet in Thane

Inauguration of Vakrangee Mart

Outlet in Pasarni, Wai Outlet inSatara District


33/56


Vakrangee Kendra

Shri GS Sandhu, inaugurating

Vakrangee Mart Outlet in Jaipur

Rajasthan

Inauguration of Bhamahsah in

Udaipur, Rajasthan by Hon’ble

Chief Minister of Rajasthan

Inauguration of Vakrangee Mart

Outlet in Pasarni, Wai Outlet in

Satara District


34/56


Vakrangee Kendra

Visit of Union Bank of India, ED at Nashik Outlet


35/56


Vakrangee Kendra

Vakrangee UID Center at Jayapura (Varanasi)

Adarsh Gram adopted by Hon’ble Prime Minister


36/56


Vakrangee Kendra

Inauguration Ceremony of 101 outlets of BUPGB in Sultanpur District-UP

Training Camp


37/56


Vakrangee Kendra


38/56

Vakrangee Limited

Vakrangee Kendra – Technology

Vakrangee Kendra


39/56


Vakrangee Kendra –

Infrastructure Setup

Banking Kit

• Laptop

• Biometric Device(with ThermalPrinter and Pin Pad)

• VPN/VSAT

• Printer

Aadhaar Kit

• IRIS Scanner

• Web camera

• Monitor Display

• Fingerprint Scanner

ATM Kit

• ATM Hardware• Statutory Display

Infrastructure

• Surveillance

• UPS

• Fire Extinguisher

• AC


40/56


Vakrangee Kendra: Technology Setup

Internet Connectivity

• Seamless connectivity

• Designed to operate 4 hours on battery backup in case of power failure

Power Supply• UPS or Diesel / gas based DG Sets to be placed at each outlet

Security Specifications

• Defined User Policy -Authentication required for each and every user of the

server; Secured and safe transactions

• SSL Certification, licenses digital certificate

• Quarterly security audit including vulnerability and penetration testing

• Information security audit by link bank before go-live certificate

• Technology platform integrated with CBS of

various banks, delivering real-time &

interoperable banking access.

• Biometric authentication enabling quick KYCand paper less banking.

• Backend integration with various

eGovernance and eCommerce partner

systems.

• Technical resources at district level trained

to handle day-to-day IT glitches and

troubleshooting.

Note:

PTS – Pass Through ServerCBS – Core Banking Solution

V-SAT – Very Small Aperture Terminal

V-SAT

Bank CBS

Bank FI Servers

eCommerce

PartnerSystems

eGovernance

Partner

Systems

PTS

Vakrangee

Kendra

Technology

Vakrangee

Transaction

Module

Cash Withdrawal/Deposit Slip

Bank Pass book/

Check book

Bank Forms Filling

Biometric

Authentication

Vakrangee

Kendra

Customer

Signature


41/56

Vakrangee Limited

Vakrangee Kendra – Operations


42/56


Vakrangee Kendra:

Well Established Last Mile Infrastructure

Head Quarters

State Office

District Office 1 District Office 2 District Office N

SSA Level Office 2

Franchisee 2

SSA Level Office 1

Franchisee 1

SSA Level Office NFranchisee N

CorporatePMO

State PMO

Franchisee

VakrangeeBlock Office NBlock Office 1 Block Office 2

Division Office 1 Division Office 2 Division Office N


43/56


Vakrangee Kendra – Five Stages

FranchiseeIdentification

FranchiseeAgreement

Outlet Setup

+ FranchiseeTraining

BankingSetup

+ Go LiveCertificate

+ eCommerce

Live

Go Stable

Certificate

0 Days

15 Days

1 to 2

Month

2nd Month

3rd Month

Onwards


44/56


• Campaigning to generate

awareness and invite

applications bycirculating leaflets at

gram panchayats, banks,

haats etc..

• Scrutinizing the

applications received

• Conduct online written

test (if required) &

interview

• Verify KYC documents of

Franchisee & Sign

Franchisee Agreement

with Franchisee

Vakrangee On-boarding

1-3 MONTHS 3-4 MONTHS

Franchisee On-boarding Go Live Go Steady

• Dedicated Settlement

Account opening with

the Link branch

• Submission of KYC

documents along with

account number details

to Alliance Partners like

Banks, Business Partners

and Government, etc..

• CIBIL and Police

Verification

• BC Code generation and

Device ID generation

• Deployment of IT

infrastructure like

hardware, software,ATM Machine and

VSAT/VPN

• Commissioning of non IT

infrastructure like

generator, furniture and

fixtures

• Training and Capacity

Building by Vakrangeeand Alliance Partners

• Transaction / Enrolment

testing of the IT system

• Opening of eCommerce

Wallet Account

• Go Live Certificate

• The retail outlet attains

the operational

stability

• The retail outlet

achieves a target of

opening 1,000 bank

a/c, 10,000 E top-ups,

sale of 100 Insurance

policies

• Go Steady Certificate

44

Vakrangee Kendra:

Franchisee On-Boarding Process


45/56


Basic Banking Operations

In the beginning BCA must concentrate on basic banking operations such as

o Survey – Identifies potential customers and creates awareness of Outlet in

neighborhood

o Account opening - Initial source of income in banking. These customer

accounts are the base on which future business is build

o Aadhaar Seeding - AEPS banking transactions allow for secure and reliable

transactions. BCA should collect the list of Aadhaar linked accounts from

the link branch for his/her SSA to know about potential customers

o Banking transactions – Regular source of income. Huge potential underPMJDY where the government is considering use of BC for DBT benefit

transfer

Jan Dhan Yojana Account


46/56


Jan Dhan Yojana Account

Opening Process

Bank Branch

Franchisee

Aadhaar Number

Finger print

E-KYC

KYC DocumentsBank Server

Bank Manager

Approve

Bank Account Number

Passbook

RuPay Debit Card

Non e-KYC Account Opening


47/56


Non e-KYC Account Opening

Process

Bank Branch

KYC Documents

Franchisee

Finger print

Capture Photo

Upload

KYC Documents

Bank Server

Note:

1) BCA has to verify the id proofs

correctly before filling KYC form

2) While capturing fingerprint and

photo, BCA has to make sure that

the photos and finger print are

captured correctly else repeat the

process

Bank Manager

Approve


48/56


Vakrangee Kendra:

Risk-Free Banking

REAL-TIME SETTLEMENT WITHOUT ANY RECONCILIATION ERROR RISK AND CASH MISAPPROPRIATION RISK

Customer’s Savings A/C

FranchiseeSettlement A/C

• The Vakrangee Kendra Franchisee is required to maintain a current settlement account with the parent bank, holding

certain minimum balance.

• This current settlement account of Franchisee is used for real-time settlement of the cash withdrawal/deposit

transactions.

Initial

A/C Balance Rs 50,000 Rs 2,00,000

Cash Deposit

Rs 20,000Credit

Rs 20,000

Debit

Rs 20,000

FranchiseeCash in Hand

Rs 50,000

+ Rs 20,000

Final

A/C Balance Rs 60,000 Rs 1,90,000 Rs 60,000

Cash

Withdrawal

Rs 10,000

Debit

Rs 10,000

Credit

Rs 10,000- Rs 10,000

• When Franchisee receives cash deposit from

customer, Franchisee’s settlement A/C gets

debited and customer’s A/C gets credited.

• When Franchisee provides cash for withdrawal

to customer, Franchisee’s settlement A/C gets

credited and customer’s A/C gets debited.

• Thus cash in hand of Franchisee becomes hisown cash, and neither the customer nor the

bank is at risk of any cash misappropriation.

• Thus the transaction amount is limited to the

balance held in the Settlement account of the

Franchisee


49/56


Fund Withdrawal Process

FranchiseeCustomer

Finger print

Withdraw

or Deposit?Withdraw‘X’

Amount

FranchiseeSettlement A/C

Customer

Account

(-ve) ‘X’Amount

(+ve) ‘X’

Amount

Receipt


50/56


Fund Deposit Process

FranchiseeCustomer

Finger print

Withdraw

or Deposit?Deposit‘X’

Amount

Franchisee

Settlement A/C

Customer

Account

(+ve) ‘X’

Amount

(-ve) ‘X’

Amount

Receipt


51/56


eCommerce Process

FranchiseeCustomer

eTopup/

DTH

Recharge?Topup

‘X’

AmountFranchisee

VakrangeeWallet

(+ve) ‘X -

Commission’

Amount

(-ve) ‘X -

Commission’

Amount

Receipt

Service

Provider


52/56


Site Preferences

To ensure business viability, site should be strategically selected to be able tocater to a large population:

Key Considerations would involve:

o Population: For ATM the population of the village/town should be preferably more

than 10,000. Slightly less than 10000 can be considered if all other factors are

favorable

o Suitable Catchment Area: Suitable location is the KEY to long term viability of

business E.g. Located in the main market/ near bus stops/ village center etc.

o Number of Account holders with Debit Cards: The number of people with bank

accounts in the area is the main driver of transaction income. Target should be to

ensure people around the outlet all have accounts with debit cards

o Footfalls: Outlet should have regular and high volume of customers passing by

o Lower Competition: Preferably new ATMs should be deployed in areas with high

banking population but not enough ATMs currently deployed


53/56


Site Compliances

Documents and Permission Required From Landlord/Society For Bank

Outlets Or ATM (wherever applicable)

1. N.O.C. from society/landlord to run Bank outlet and ATM

2. Building stability certificate or Audit Report approved by Local

Municipal Body

3. Occupancy certificate from Local Municipal Body

4. Permission for fixing and fitting V-Sat on roof from landlord/society

5. Approved building map from Local Municipal Body where shop is

located

6. N.O.C. from society/landlord for renovation or partition in the shop

7. Agreement copy of Landlord between Builders/Society


54/56


Site Compliances

Documents And Permission Required From Local Municipal Body

(wherever applicable)

1. Permission for renovation or partition

2. N.O.C. for fire / pollution and others as per bylaws of Local Municipal

Body

3. Police verification from Area Police Station

4. Shop and Establishment License

5. N.O.C. to run outlet and ATM from Local Municipal Body (if required)

Urban Site and Interior


55/56


Urban Site and Interior

Preparation

Franchisee will have to follow official Vakrangee Kendra Setup guidelines

which would be provided as part of On-Boarding exercise

The key elements which comprise site preparation are as follows :

1. Civil Constructions

2. Wooden Partitions for Placing UPS Kits & Batteries

3. False Ceiling

4. Air Conditioner

5. Wooden paneling and furniture

6. Surveillance Equipment and Signage

7. Main glass door8. Wooden Boxing, Cash Box

9. Rolling shutter

10. External paving to be user friendly for differently abled people


56/56

Thank You