Sanjiv Mitragotri

Adxxxne Fxx Ixx Axx Private Limited Process Note for Business Correspondent Banking Objective of the Document: This note defines the process for providing banking services to customers through the Business Correspondent banking model. Version Control: Version Author Date Comments 1.0 Sanjiv M/ Sanjay Kxxxar June 26, 20xx First Draft 2.0 Sanjiv M / Sanjay Kxxxar June 30, 20xx Addition of Customer Service, MIS/Governance 4.0 Sanjiv M/ Sanjay Kxxxar July 6, 20xx Incorporation of RPSL’s Comments 4.3 Sanjiv M /Sanjay Kxxxar July 10, 20xx Incorporated Seema’s Comments 4.5 Sanjiv M /Sanjay Kxxxar Aug 22, 20xx Incorporated clarifications on open issues from RPSL & SBX 4.6 Sanjiv M /Sanjay Kxxxar Sep 22, 20xx Incorporated review comments and changes suggested 4.7 Sanjiv M /Sanjay Kxxxar Sep 30, 20xx Incorporated review comments on v4.6 Process Note for BC-based Banking v 4.7 Table of Contents Contents Acronyms........................................................................................................................................................... 5 1.0 Introduction ........................................................................................................................................... 7 1.1 Key Stakeholders .............................................................................................................................. 7 1.1.1 Sxxxxx Xxxxx Bank ..................................................................................................................... 7 1.1.2 Rexxx Pxxxnt Systems Limited ................................................................................................. 8 1.2 Key Processes Groups...................................................................................................................... 9 1.2.1 Organization Set-up ................................................................................................................ 10 1.2.2 BC Agent Lifecycle .................................................................................................................. 10 1.2.3 Customer Lifecycle................................................................................................................. 10 1.2.4 Transactions ............................................................................................................................ 10 1.2.5 Governance ............................................................................................................................. 11 1.3 SBX’s TDBA ...................................................................................................................................... 11 1.4 SBX’s Current Account ................................................................................................................... 11 2.0 BC Agent Lifecycle Management....................................................................................................... 12 2.1 Identification ................................................................................................................................... 12 2.2 Short listing _ ................................................................................................................................... 12 2.3 Assessment ..................................................................................................................................... 14 2.3.1 Due-diligence .......................................................................................................................... 14 2.3.2 Assessment ............................................................................................................................. 15 2.4 Recruitment..................................................................................................................................... 15 2.5 On-boarding .................................................................................................................................... 15 2.6 Training ............................................................................................................................................ 16 2.7 Operations ....................................................................................................................................... 17 2.8 Departure of BCA ............................................................................................................................ 18 2.9 Governance ..................................................................................................................................... 19 3.0 Customer Lifecycle Process Group _................................................................................................ 19 3.1 New TDBA Application using Aadhaar as KYC ............................................................................. 20 3.1.1 Customer Opens Mobile A/c using Aadhaar ........................................................................ 22 Adxxxne Fxx Ixx Axx October 20xx Page 2 Process Note for BC-based Banking v 4.7 3.1.2 AOF Submission with Aadhaar as KYC ................................................................................. 24 3.1.3 Logistics of Paper AOF ........................................................................................................... 28 3.2 New TDBA Application using non-Aadhaar KYC .......................................................................... 30 3.2.1 Customer Opens A/c using non-Aadhaar KYC .................................................................... 31 3.2.2 AOF Submission with non-Aadhaar KYC .............................................................................. 33 3.2.3 Scan KYC and Attach to Digital AOF...................................................................................... 35 3.2.4 Logistics of Paper KYC docs to support AOF ........................................................................ 36 3.3 Activities by BC Operations System and Team ........................................................................ 36 3.3.1 Assignment of Primary Mobile Number to Customer’s AOF............................................... 37 3.3.2 Review and Approval of TDBA Requests ............................................................................... 38 3.3.3 Rejected Account Opening Request Processing ................................................................. 39 3.3.4 BCA hand-held device/Tablet/microATM – Operational Security ...................................... 41 3.4 Activities by SBX Team and CBS ................................................................................................. 41 3.4.1 TDBA Request Processing ...................................................................................................... 42 3.4.2 Post-processing after opening a TDBA in CBS ..................................................................... 43 3.4.3 Statuses of an Account Request ........................................................................................... 45 3.5 Customer Account Maintenance ............................................................................................... 45 3.5.1 Update of Customer KYC ....................................................................................................... 45 3.5.2 Close Customer Account ....................................................................................................... 47 4.0 Transactions Process Group ............................................................................................................. 49 4.1 Financial Transactions ................................................................................................................. 50 4.1.1 Cash Withdrawal by Customer.............................................................................................. 51 4.1.2 Cash Deposit by Customer .................................................................................................... 54 4.1.3 Two Factor Authentication using OTP ................................................................................... 57 4.1.4 Instant Fund Transfer from TDBA to PPI Wallet .................................................................... 59 4.1.5 Instant Fund Transfer from PPI Wallet to TDBA .................................................................... 62 4.1.6 Funds Transfer from CBS to CBS Accounts.......................................................................... 65 4.1.7 Fund Transfer from CBS to Third Party Account via NEFT ................................................... 67 4.1.8 Bill Payments (One Time) ....................................................................................................... 69 4.1.9 View and Pay Registration ...................................................................................................... 71 4.1.10 View and Pay Processing ....................................................................................................... 73 4.1.11 Recharge Mobile ..................................................................................................................... 75 Adxxxne Fxx Ixx Axx October 20xx Page 3 Process Note for BC-based Banking v 4.7 4.1.12 Cash Management.................................................................................................................. 77 4.1.13 Deposition of Outward Clearing Cheques ............................................................................ 77 4.2 Non-Financial Transactions ........................................................................................................ 79 4.2.1 Statement Requests (Physical Paper Printing)..................................................................... 80 4.2.2 Statement Request (eStatement).......................................................................................... 81 4.2.3 Statement on Email (Regular Generation) ............................................................................ 83 4.2.4 Mobile Number/Email Update ............................................................................................... 84 4.2.5 Update of Address .................................................................................................................. 85 4.2.6 Standing Instructions Set-up ................................................................................................. 85 4.2.7 SI Closure ................................................................................................................................ 87 5.0 Customer Service ............................................................................................................................... 88 5.1 Level 1 Resolution ......................................................................................................................... 88 5.2 Level 2 Resolution ......................................................................................................................... 89 5.3 Level 3 Resolution ......................................................................................................................... 89 6.0 MIS and Governance........................................................................................................................... 89 6.1 Roles Description .......................................................................................................................... 90 6.2 Role-wise MIS Structure .............................................................................................................. 91 6.2.1 BC Agent .................................................................................................................................. 91 6.2.2 Retail Store Manager............................................................................................................... 92 6.2.3 BC Officer ................................................................................................................................ 93 6.2.4 BC Support Executive ............................................................................................................. 94 6.2.5 BC Support Manager............................................................................................................... 94 6.2.6 BC Head of Operations ........................................................................................................... 95 6.2.7 SBX Officer ............................................................................................................................... 96 6.2.8 BC Support Executive ............................................................................................................. 97 6.2.9 SBX Support Executive ........................................................................................................... 97 6.2.10 SBX Support Manager ............................................................................................................. 98 6.2.11 SBX Head of Operations ......................................................................................................... 98 6.3 Governance .................................................................................................................................. 100 Appendix – A: KYC compliance requirements ............................................................................................ 101 Appendix - B: Guidelines for establishing Cash limits for BC Agents....................................................... 102 Adxxxne Fxx Ixx Axx October 20xx Page 4 Process Note for BC-based Banking v 4.7 Acronyms AEPS Aadhaar Enabled payment system AML Anti Money Laundering AMS Agent Management System AOF Account opening form APBS Aadhaar Payments Bridge System ATM Automated Teller Machine BC Business Correspondent BCA Business Correspondent Agent (Synonymous to CSP) BCM Business correspondent manager CASA Current and Savings account CBT Computer based training CCPU Central Cheque processing unit CMA Cash Management Agency CRU Complaint resolution unit CSC Customer service centre CSP Customer service point (Synonymous to BCA) DBT Direct benefits Transfer DMS Document Management System DoB Date of Birth IMPS Immediate Payment service IVR Interactive voice recognition KYC Know Your Customer MIS Management Information Systems NEFT National Electronic Funds Transfer Adxxxne Fxx Ixx Axx October 20xx Page 5 Process Note for BC-based Banking v 4.7 OSV Original Seen and Verified OTP One Time password PAN Permanent Account Number PPI Prepaid Instrument RBI Reserve Bank of India RPSL Rexxx Pxxxnt Systems Ltd RTGS Real Time Gross Settlement RTO Regional Transport Office SBI State bank of India SBX Sxxxxx Xxxxx Bank SLA Service Level Agreement SMS Short messaging system TAT Turn around time TDBA Trident Digital Bank account TFA Two factor authentication TRAI Telecom Regulatory Authority of India UIDAI Unique Identification Authority of India URN Unique Reference number USSD Unstructured supplementary service data Adxxxne Fxx Ixx Axx October 20xx Page 6 Process Note for BC-based Banking v 4.7 1.0 Introduction Sxxxxx Xxxxx Bank (SBX) and Rexxx Pxxxnt Systems Limited (RPSL) have partnered together where RPSL will act as a Business Correspondent (BC) to Sxxxxx Xxxxx Bank (SBX) to offer banking services to customers. This will be done through their designated BC Agents (BCA)/ Customer Service Points (CSP). The BCA/ CSP may be an employee of RPSL-BC itself or any individual, NGO/MFI, Cooperative Societies, retail mom-n-pop stores and Companies that are registered with the Indian Companies Act. The role of BCA is synonymous to that of CSP and hence any references to BCA applies to CSP as well and vice-versa, unless explicitly mentioned in the document. For consistency, ease of readability and reference, the rest of the document uses the term BCA only. The services will be offered by using the Business Correspondent model which enables establishment of an individual or an organization as an agent of the bank as mentioned above. The BC will appoint the BCA by entering into a valid Bi-partite agreement with them wherein all terms and condition of employment will be specified. This agreement will be standard in nature and will have been vetted by the Bank. The customers visiting BC agent Outlet of RPSL will be offered a bouquet of offerings which may include but not necessarily be restricted to the following: • • • Telecommunication products like mobile phone connections, prepaid instruments / wallets etc. Multi brand Retail stores that offer clothing, groceries, white goods, medicines etc Single brand Retail stores that offer specific retail /consumer products/services The customer is entitled to all the SBX’s banking services possible through the BCA without any obligation to buy other goods or services from the BCA. For the purpose of on-boarding a new customer, a single process of enrolment has been envisaged for those customers, who intend to subscribe to mobile phone as well, if the BCA happens to offer that service. This is expected to simplify the registration and on-boarding process from customer’s point of view as it is completed with minimum documentation and data entry effort. If available with the customer, Aadhaar will be leveraged as a means of KYC. Use of technology is a key enabler, with as much of the process to be completed digitally as possible (refer Appendix – A for complete details about KYC requirements). 1.1 Key Stakeholders The key stakeholders involved in this process and their roles are briefly described below: 1.1.1 Sxxxxx Xxxxx Bank All banking facilities will be offered on behalf of SBX, and as per RBI guidelines, SBX will own the customers who open bank accounts for aspects related to banking activity. Adxxxne Fxx Ixx Axx October 20xx Page 7 Process Note for BC-based Banking v 4.7 1.1.2 Rexxx Pxxxnt Systems Limited RPSL will be appointed as a Business Correspondent of SBX, and the two will enter into a legal agreement for this purpose. RPSL will be responsible for appointment of BC Agents who will actually service the customers. As mentioned in the previous section, the BC agent (BCA) can be an employee of RPSL or anyone who has been contracted by RPSL. 1.1.3 BC Agent/Customer Service Points (BCA/CSP) One or more BC Agents (BCA) will be associated with RPSL outlet/ stores. These are individuals who function as an agent of RPSL. The services with respect to banking products, offered by them to customers will be on behalf of SBX. These BCA will enter into a legal agreement with RPSL. (BC and BCA/ CSP agreement). The agreement text between BC and BCA/ CSP will be standardized and will be vetted by SBX’s legal team, before it can be implemented. BCA relationship is owned by the BC i.e. RPSL in this case. SBX will have complete oversight into the lifecycle as well as the activities of these BCA’s . The following diagram depicts this relationship pictorially: Adxxxne Fxx Ixx Axx October 20xx Page 8 Process Note for BC-based Banking v 4.7 A BC Agent will normally operate from a store. However, this is not mandatory as some BCA’s, especially those servicing the rural/ semi urban areas may prefer to be mobile and offer services at multiple designated points, within the permissible distance as specified by the BC/Bank/Regulator. Further, BCAs may be appointed in areas geographically nearby to the RPSL-BC outlet/ store to expand the reach of the BC’s banking services. An individual who will be employed with RPSL and stationed at the RPSL outlet/ store may be identified to perform the role of BC Manager. This individual will coordinate several operational activities related to the BC Agents, including Cash Management, Training, MIS and Monitoring. As per the RBI guidelines, a BC Store or agent needs to operate within a specified distance from the base branch of the bank. This distance is currently prescribed at 5 kms for Metro’s and up to 30 kms for Urban/Semi-Urban/ rural branches from the base branch. 1.2 Key Processes Groups The following diagram depicts the key processes that will be detailed in this document: Adxxxne Fxx Ixx Axx October 20xx Page 9 Process Note for BC-based Banking v 4.7 Organization Set-up BC Agent Lifecycle Customer Lifecycle Transactions Governance 1.2.1 Organization Set-up This includes establishment of the organization structure described in Section 1.1 above. Key activities include completion of formal agreements between i) ii) SBX and RPSL, RPSL and BCAs. Preparation of the legal agreements is out of the scope of this document, and is being performed as a separate activity. 1.2.2 BC Agent Lifecycle This process covers activities starting with recruitment of the BCA candidates, their selection, onboarding, training, operationalization, and eventual departure when the BCA leaves the role/terminates his legal agreement with RPSL. Design, implementation and operational execution of the compensation of BCAs is excluded from the scope of this overall BCA lifecycle process based on mutual consent of all parties involved in this project. RPSL will be responsible for designing a compensation structure for BCA’s that is fair, competitive and commensurate with the responsibilities handled by them. The compensation details should be included in the contractual agreement between BC and BCA. SBX will have complete visibility related to employment of BCA like performance, regular and timely disbursal of compensation and other governance rights as mutually agreed between RPSL and Bank, from time to time. 1.2.3 Customer Lifecycle The customer lifecycle process group comprises customer account opening, servicing, and eventual closure of account (thus depicting the end of relationship with the bank). 1.2.4 Transactions Financial and Non-financial transactions performed by the customer through the BCA outlets are covered in this process group. The complete list of permitted transactions is mentioned in section 4.0. It is planned to offer services using – • • IMPS AEPS Note: For avoidance of any ambiguity, services through APBS/DBT’s are not planned to be offered through BC’s. Adxxxne Fxx Ixx Axx October 20xx Page 10 Process Note for BC-based Banking v 4.7 1.2.5 Governance Governance of the above processes to ensure their performance as per design is included in this process group. Governance will be primarily implemented through establishment of MIS. In addition, various types of audits including on-group BCA outlet audits could also be leveraged to ensure the compliance. 1.3 SBX’s TDBA The TDBA is a ubiquitous solution providing customers with a basic deposit account (CASA) with access to services like Bill Payments, Fund Transfers (NEFT/RTGS, AEPS, IMPS), pre-paid recharge primarily through a user friendly, intuitive and Straight Through Processing (STP). The customer will be allowed to access and operate the account either through SBX’s world class mobile banking solution or through the Business Correspondent network. Accounts: SA/CA (only single holder accounts). For non-individuals, SBX offers Sole Proprietorships and Partnerships. Types of Branches: BC will be providing Account opening and servicing activities to customer through the Business Correspondents route KYC: Complete KYC as per RBI norms. SBX will use e-KYC as a process to enable/open the accounts (refer Appendix A on KYC details). Customer’s will sign the AOF via biometric signature/ scan. Minimum Amount to Open A/c: Rs. 0 Minimum Balance: Rs. 0 BC Services: BC-based services to include cash deposits, cash withdrawals, transfer funds, view account details, request statements and recharge wallets/prepaid number along with booking deposits. Digital Mobile Banking Services: Digital mobile application services allowing customers to transfer funds, pay bills, recharge wallets/prepaid numbers, book deposits, and receive statements on email. ATM/Debit Card: Not Applicable Cash Withdrawal and Deposit: Through Business Correspondent Cheque Books: No cheque books will be given as part of this product. Outward cheques clearing, issued in favour of this account will be processed as per existing cheques clearing process at the bank. Restrictions on Account: Transactions restrictions like no. of transactions per day/month/quarter/year will be defined, AML monitoring and transaction monitoring will be enabled. International transactions will not be allowed. 1.4 SBX’s Current Account Small value current accounts will be offered through BC. RBI does not permit large value accounts to be serviced through BC outlets. Adxxxne Fxx Ixx Axx October 20xx Page 11 Process Note for BC-based Banking v 4.7 2.0 BC Agent Lifecycle Management The BC Agents role is a key role in BC-based banking. He offers banking services to the customers, and thus serves as the “face” of the bank to them. Selection, Training, Mentoring, and Management of the BCA is a crucial factor leading to successful BC operations. Key processes that are involved in BCA Lifecycle are:-. Identification Shortlisting Assessment Recruitment On-boarding Training Operations Compensation and Incentive Design and Payments Departure/ Termination In the context of RPSL’s retail operations, the role of BC Manager is important in this process. This note will not focus on the establishment of BC Managers, since the BC Manager is employed by RPSL and is part of their responsibility. However SBX will have a role in defining the hiring framework/ guidelines as well as have full visibility in the hiring process of BC Manager. Complete details are provided in section 2.3.1 An Agent Management System (AMS) will be developed and become part of the system available to BC Manager. This software will enable management of the above processes. SBX will have access to this system, and will be able to review the details of any BCA in real time. 2.1 Identification 2.2 Short listing _ Identification of BCAs is the process of identifying candidates who will perform the role of a BC Agent. Candidates may be sourced from local community, preferably through referrals from store employees and other known individuals. Advertisements in newspapers and other media could also be used for generating candidate lists. Eligible BCAs have to meet RBI guidelines notified on 28th Sep 2010 and as amended from time to time (RBI Ref: RBI/2010-11/217 DBOD.No.BL.BC.43 /-/2010-11) The key requirement for short listing should, at a minimum, include the requirement that the individual is a permanent resident of the area where he will operate from. This requirement is mandated by RBI for BC model. In addition to the requirement of being from the area, RPSL and SBX will define additional minimum requirements on the following aspects. The minimum requirements mentioned below are desirable, however evaluation criteria for some parameters can be relaxed considering the local demographics: • Age: E.g. > 18 years Adxxxne Fxx Ixx Axx October 20xx Page 12 Process Note for BC-based Banking v 4.7 • • • • • Education: At least 12th pass Working knowledge of English language to be able to operate the device and banking software Strong proficiency in local/ regional language (Spoken, Written and Reading) Financial Literacy (being able to understand the meaning of financial numbers, whether he has bank savings account, life insurance policies, invests in MF, equities etc. to assess the level of financial awareness) Maturity A formal objective process of assessing non-objective criteria (Financial Literacy, Maturity) mentioned above needs to be identified. For example, a form with weights assigned to each criterion could be used. There are several HR tools and techniques (psychometric tests) that could be used to perform this assessment as objectively as possible. The tests should normally be conducted in English language, however an option should be available for the tests to be conducted in regional language as it may be hard to find people with reasonable proficiency in English language in some remote locations. The candidate should provide at least two references from responsible individuals from the community. The following types of persons can provide references to the candidates: • • • • • Government Officials Headmaster of schools Sarpanch of Gram Panchayats (in rural and semi-rural areas) Managers of Reliance’s local organization Bank Managers of local branches The above list is a generic list. Additional roles that are acceptable could also be identified based on SBX and RPSL agreement to the same, within the purview of RBI guidelines. Details of candidates who are evaluated will be captured in the Agent Management System. Some of the key fields which will be captured are: • • • • • • • • • • • Name Address DoB Education Reference English Language Proficiency basis BC Managers subjective assessment during personal interview/ discussion. Present source of income (such as a kirana shop, pharmacy, etc.) Present income Availability of space for provision of BC services (not applicable to employees of retail store) Mobile Number Past Working Experience Adxxxne Fxx Ixx Axx October 20xx Page 13 Process Note for BC-based Banking v 4.7 There are two scenarios involved in selection of the BCA: 1. BCA Candidate is employed with Reliance group of companies: In case the candidate is an employee of Reliance group, it is likely that the above criteria are already met, and the necessary information will be available to RPSL. This will accelerate the process of selection. 2. BCA is an external individual: In case the BCA candidate is not an employee of Reliance group, and is an external individual (such as a kirana store operator), the above details would be required. 2.3 Assessment 2.3.1 Due-diligence RBI requires that the BC undertakes proper due-diligence on the individual considered for the role of a BCA. However, it does not specify the specifics of the due diligence required. It is left to the bank to define the checks that need to be undertaken. These checks have been varied in nature. Some of the best practices being followed in the industry are listed below over and above the KYC of the BCA: • • • • Police Verification (best practice followed by Punjab National Bank) Letter of Introduction by government officers in the local area Records of past employment (for teachers, ex-servicemen, post office employees) In-person meeting with the Branch Manager with whom the BCA will be associated In case of this project, SBX may accept that being an employee of Reliance group may be an acceptable qualification. This addresses the issue of a BCA belonging to the retail store. It can be assumed that the necessary due diligence has been undertaken by Reliance group at the time of offering employment to the individual. The BCA will need to sign a legal agreement with RPSL to be enrolled as BCA irrespective of his employment /relationship with Reliance group. In case of an external individual, SBX and RPSL will jointly define the due diligence requirements. Bank will NOT be involved in the decisions around hiring, resignation / termination of BCA, however will provide the hiring framework. Bank’s internal policy mandates that, every person being hired to act on behalf of the Bank, must undergo Bank level due diligence including NORKOM, Negative watch list check, sanctions screening etc. The partner will therefore have to provide all necessary details for every BCA to the Bank for it to run these checks before hiring the BCA. Moreover there will be a governance process to review the hiring and performance of BCA’s at regular frequency. In the case of hiring of BC Manager, SBX will provide guidelines and framework for hiring. As mentioned above, SBX will carry out its due diligence checks before hiring of the BC Manager. RPSL will share the profile of the candidate being hired for BC manager and get consent of SBX before offering appointment to the BC Manager. Adxxxne Fxx Ixx Axx October 20xx Page 14 Process Note for BC-based Banking v 4.7 2.3.2 Assessment SBX is responsible for defining guidelines/ framework for the selection and hiring of BC Manager. A set of objective and subjective criteria for selection should be established. The BC Manager will be responsible for the assessment of the BCA candidates. A set of criteria will be made available to the BC Manager based on which the assessment could be undertaken. These criteria are classified as objective and subjective. Objective Criteria include Age, Education, Residency Status, and other details which can be verified based on documentary evidence. Subjective Criteria include the following: • • • • • Proficiency of local and English language Communication Skills Customer Service Skills Financial Literacy Maturity to deal with customers belonging to the target segment BC Manager will undertake this assessment through a personal interview. At this time, he will also check the veracity of the candidate’s document. The BC Manager may review compensation structure with the BCA candidate during this discussion. In this respect, the process is quite similar to hiring an employee. Additional criteria may be defined as the business understanding evolves. The assessment should be captured by the BC Manager in Agent Management System module. Based on assessment undertaken by the BC Manager, a BCA candidate may be selected for the role. 2.4 Recruitment On selection of the BCA, the BC Manager will issue an offer letter to the candidate, which will include the terms of engagement as BCA, and compensation structure. On acceptance of the offer letter by the candidate, a formal legal agreement will be entered into by the BC (RPSL) and the BCA candidate. Once the agreement is entered into, the candidate is formally considered the BCA and will be ready to be on-boarded and trained for offering services. A scanned copy of the signed legal agreement will be shared with SBX as part of the on-boarding process. 2.5 On-boarding The BC Manager will initiate the process of creation of ID for the BCA into the Agent Management System. The BCA will be required to provide additional details such as a bank account number in which the compensation will be paid to the BCA. If the BCA is a member of the Reliance group staff, this process may already have been completed, and need not be duplicated. The fingerprints or Aadhaar number of Adxxxne Fxx Ixx Axx October 20xx Page 15 Process Note for BC-based Banking v 4.7 the BCA will be captured in AMS so as to be able to authenticate him when he performs banking transactions. Note: The BCA will be required to authenticate every transaction, when he is in the field using micro ATM devices. This requirement may be relaxed if the BCA is operating from a fixed location/ premises (e.g. Stores, Reliance Retail stores, Reliance digital express stores, Kirana shop etc.). Once the criteria is finalised, it needs to be translated into a Systems requirement. The SBX BC Operations team will be notified when the BCA is created into the system through SFTP or Web Services. This needs to be finalised during Systems design with IT teams. 2.6 Training The BCA will need to be trained before he begins the BCA operations. The training will include the following aspects: 1. Concept of a Bank 2. Role of Business Correspondent and Responsibilities 3. Financial Service Offering Details (Savings, Remittance, etc.) 4. Customer Communications 5. Customer Account Opening Process (using device) 6. Transactions Process (using device) 7. Managing Currency (currency handling, fake currency detection, safe storage of currency, etc.) 8. Cash Management (working with Cash Management Agency, planning for cash requirements) 9. Responding to Customer Complaints 10. Escalation Process (where to call and report an issue) 11. Reporting to BC Manager 12. Handling Device and taking care of it along with basic training on handling/resolving minor device related issues 13. Operating MicroATM and taking care of it along with basic training on troubleshooting minor device issues A training program will be designed on the lines above. Training delivery capacity will be established to train the BCA on these aspects. SBX will establish training delivery capacity based on the above scope and implement the same through a “Train the trainer” model. SBX team will be involved in training the BC managers. Once trained on all aspects of BC operations, these BC Managers will then impart training to the BC agents. The details of preparing the training contents (design, development, delivery) are excluded from the scope of this process note. This could be outsourced, but SBX will govern the training process through audits and other means. After completion of training, the BCA will be administered a test which will evaluate his knowledge and proficiency in the above areas. This could be a Computer Based Testing (CBT). If the BCA secures a Adxxxne Fxx Ixx Axx October 20xx Page 16 Process Note for BC-based Banking v 4.7 qualification grade in the test, he will be provided with the device to perform activities of a BCA. The BCA will be required to undergo further training till he successfully clears the test. The results of these qualification tests will be maintained in Agent Management System. Refresher Training The BCA will be provided refresher training on quarterly basis, with an associated evaluation. This refresher training will be delivered through digital media. 2.7 Operations On completion of training, getting possession of the device and creation of unique ID into the system, the BCA will be set to offer banking services to customers on behalf of SBX. At this time, the BCA will be capable of performing several activities. TAT for all the process steps will be discussed and agreed between RPSL and SBX based on each parties operational TAT. Banking Services offered through the BC channel could include: 1. New Account Opening 2. Deposit of Cash into Customer’s TDBA 3. Withdrawal of Cash from Customer’s TDBA 4. Balance Enquiry 5. Account Statement 6. Set-up of Transaction Alerts 7. Wallet Loading (Cash In/Out) 8. Nomination (Create/Modify/Delete) 9. Instant Fund Transfer Between Bank A/c and PPI Wallet 10. Instant Fund Transfer Between PPI Wallet and Bank A/c 11. Fund Transfer to 3rd Party using NEFT 12. Fund Transfer via AEPS 13. Bill Payments 14. Recharge of Mobile Phones 15. Activation of Mobile Banking for Customers 16. Reset of User ID/Password for Mobile Banking Customers 17. Closure of Standing Instructions 18. Set-up of Standing Instructions 19. OSV for Online Account Opening 20. Static Data Amendment (Address Change, Contact Information Update) The process of account opening will be in alignment (or part of) with the overall customer on boarding which will be followed for the BC through its BC agent. Cash Management Adxxxne Fxx Ixx Axx October 20xx Page 17 Process Note for BC-based Banking v 4.7 Cash Management process should be in line with RBI circular RPCD.FID.BC.No.96/-/2013-14 dated 22 April 2014 The deposit and withdrawal transactions undertaken by the BCA for customers will result in either additional requirement of cash, or excess of cash. The process for Cash Management will be dealt in a separate note as guided by the Cash Management Services team. It is envisaged that the Cash Management will be done in the following manner: • • • • • • • Cash limits will be assigned to each BCA depending on expected transactions in the particular location. For instance if the BCA operate in a market area dictated by frequent and substantial transaction volumes; the cash limits would need to be commensurate to the requirement. However, if the BCA operate in a residential area; the cash limits would not be as high given that transaction frequency and volumes would be low. The limits will also take into consideration safety margins and seasonal/ festival related fluctuations. Basis the cash limits at the individual BCA; the aggregate cash limit at the BC-RPSL hub location would be decided. The Cash Management between the Bank and the BC-RPSL hub location will be managed by the Cash Management Services team at SBX. However, it has been decided that Cash Management between the BC-RPSL hub location and the individual BCA will be handled by the BC-RPSL. SBX will provide specific guidelines (both internal as well as those issued by regulator) to the BC on how to handle cash operations, risks involved in day-to-day functioning and adequate insurance that need to be in force at any given point of time. The definitive agreements/ MOU will contain roles and responsibilities of the BC while handling cash. NOTE: Refer to Appendix B for guidelines on establishing cash limits for BCA 2.8 Departure of BCA A BCA is required to serve 45 days notice to the BC about his intention to terminate his contract/ agreement as a BCA. When a BCA decides to move out, a series of tasks will be initiated: • • • • • • • Intimation to SBX by RPSL Assignment of an alternate BCA for the geography in a reasonable time frame Hand-over of tablet Deactivation of ID and biometrics in the system Payment of outstanding compensation and closure of account (after a cool-off period defined as per RPSL’s policy) Termination of BC-BCA Agreement Return of any BCA-related collateral (such as ID Cards) by BCA to RPSL Adxxxne Fxx Ixx Axx October 20xx Page 18 Process Note for BC-based Banking v 4.7 On completion of these activities, the association of the BCA with RPSL and thereby with SBX will be considered to have ended. To ensure that there are no fraudulent transactions after BCA has signed off –especially for Cash deposits BC should implement some/all of the steps below to inform the customers: • • • • A notice should be put up at the location at least 1 month prior to termination informing customers about the termination. Along with that, the new agent location in the vicinity should also be put up. Include the agent login verification including the Geo locations of the BCA. A SMS to all the customers in that area can be sent informing about the termination of existing BCA and appointment of new BCA including the effective date of this change. In case of re-hiring the same BCA again in future, the prevailing processes of verification, on-boarding and training should be followed. 2.9 Governance While RPSL will have the flexibility to select, manage and retrench BCAs based on agreed processes and policies, SBX will have access to the BC Agent Portal from a Governance perspective. Depending on the agreement between SBX and RPSL, commercial information i.e. Compensation structure of the BCA may be excluded. The bank officials should be able to set alerts on specific events so as to be notified for review by them. This needs to be part of Transaction monitoring done by bank’s fraud control unit and should be included in appropriate operational processes. Use of technology is strongly recommended with respect to tracking BCA’s physical location of operation. This is possible by capturing the Geo location coordinates using the tablet/microATM during field operations. This needs to be part of system requirements. 3.0 Customer Lifecycle Process Group _ The customer’s engagement with SBX begins with the intent of opening an account. In the context of this Trident program, this could happen, when the customer approaches the BCA/ retail store/ outlet to avail of a product/service (e.g.: mobile connection, PPI, white goods etc. ) . The overall process of a customer’s relationship with the bank is depicted below: Open Account Adxxxne Fxx Ixx Axx Transact Additional Services October 20xx Close Account Page 19 Process Note for BC-based Banking v 4.7 3.1 New TDBA Application using Aadhaar as KYC It is envisaged that a customer will approach a store to acquire a new mobile phone number or a PPI or any other offering from the BCA. At this time, he may be offered a Trident Digital Bank Account (TDBA). This account will not be hard bundled with any other offering. The customer may choose any product in isolation and the same will apply to the Bank Account as well. It is expected that on-boarding formalities for the Bank account be in line with RBI and Bank’s KYC/CDD norms for account opening. Keeping with the spirit of using technology to execute most business processes, it has been decided to use Aadhaar and its e-KYC feature as the primary KYC (refer Appendix A on KYC details). In case a customer does not possess Aadhaar, the usual KYC documents would be required. The list of documents acceptable for Proof of Identity and Address proof is provided in sec. 3.2 of this document. BCA will collect all the necessary KYC documents from the customer and validate it against the originals. The photocopies of the KYC documents will be maintained at BC- RPSL. The scanned copies of the KYC documents will be shared with SBX. The document management life cycle is currently out of scope of this process document. The following process flow chart depicts the high-level process steps involved in opening a TDBA by using only Aadhaar as KYC for the customer. The assumption here is that the BCA also sells mobile connections among other products as well as the Bank accounts. Adxxxne Fxx Ixx Axx October 20xx Page 20 Process Note for BC-based Banking v 4.7 The following table describes the above activities in more detail: ID Activity Description 1 BCA Outlet (Telco A/c A customer visits the BCA store and indicates interest in opening a process) mobile connection. The formalities of opening this account are completed. 2 Trident A/c Process The customer is offered a Trident Digital Bank Account (TDBA), and accepts to open one. The customer details entered for opening mobile connection is used for KYC (refer Appendix A on KYC details) and subsequent process of opening the account is completed. The information collected in the store is submitted to the BC Operations team. 3 Review AOF and KYC BC Operations team reviews details submitted by the customer, and decide on approval/rejection of the request. On approval, the customer details are submitted to SBX Operations electronically. If the request is Adxxxne Fxx Ixx Axx October 20xx Page 21 Process Note for BC-based Banking v 4.7 rejected, it is sent back to the BCA for correction and re-submission. 4 Review AOF and KYC SBX Officer reviews the request and approves or rejects it. If approved, the details are submitted to CBS for account creation. Account creation is automatic, with no further human intervention. If rejected, the process comes to an end. A message will be broadcast in either case notifying the BCA and Customer about the decision related to TDB account opening. 5 Create Activated A/c An activated TDBA is created and the details are sent to BC Operations. 6 Update BC System and The BC System is updated with account details or the rejection status of Inform BCA/Customer the request. The customer and BCA are informed of the status. The above flow is described in more detail. 3.1.1 Customer Opens Mobile A/c using Aadhaar The following table describes the above activities in more detail. Only those components of the process which have bearing on subsequent bank account opening activity are detailed below. It is Adxxxne Fxx Ixx Axx October 20xx Page 22 Process Note for BC-based Banking v 4.7 acknowledged that actual process of procuring a mobile phone connection is more involved than documented here: ID Activity Description 1 Submit Aadhaar Card The customer requests a new mobile connection, and opts to do enrolment using Aadhaar e-KYC. He submits the Aadhaar card (or shares Aadhaar number) to the BC Agent. 2 Enter Aadhaar Number + Capture Customer’s Finger Prints BCA uses his tablet-based application to start a new mobile connection opening process. BCA enters customer’s Aadhaar number and captures finger prints on the application. The finger prints entered on the application serve as electronic consent given by the customer to UIDAI for sharing customer’s details with RPSL. The biometrics captured is stored on IDAM for future reference during transaction processing. 3 Submit Aadhaar + FP to ASA and Fetch Details BCA submits customer’s Aadhaar and his finger prints to ASA, and retrieves customer information. The following information is provided by UIDAI along with URN: • • • • • • • Name Address Date of Birth Gender Phone Number Email if available Photograph BCA shows these details to the customer. 4 Confirm KYC Details Customer reviews the details and confirms their correctness to the BCA. The KYC details will be captured along with URN. If the customer wishes to change any details, Aadhaar-based KYC will not apply. In this case the BCA will follow non-Aadhaar KYC process described in Section 3.2. 5 Validate KYC Details BCA validates the KYC details (compare photo with the individual), update email address, etc. 6 Capture Additional Details Additional required fields of information, such as Preferred Language, Annual Income, etc. are captured by the BCA through interaction with the customer. 7 Complete Telco BCA completes the remaining mobile connection creation process, Adxxxne Fxx Ixx Axx October 20xx Page 23 Process Note for BC-based Banking v 4.7 Process including selection of tariff plans, provision of SIM card, etc. 8 Generate Request # The BC System will generate a number for the request which can be used for tracking. 9 Provide Request # to Customer The request number is provided to the customer. Note: It is understood that certain validations will be done based on the finger prints and customer information available in IDAM system. 3.1.2 AOF Submission with Aadhaar as KYC If the customer wishes to open a bank account, the BCA will complete SBX’s AOF through the following process. It is to be noted that the BCA will populate the customer data on the Account opening screen on the tablet [use of paper less technology for on-boarding and servicing] basis the Aadhaar details and have the customer authenticate the details before proceeding to send it for further checks/ verification to SBX Operations team. Adxxxne Fxx Ixx Axx October 20xx Page 24 Process Note for BC-based Banking v 4.7 ID Activity Description 1 Decision to Open Trident Digital Bank A/c The customer intends to open a Trident Digital Bank account. The BCA explains the terms and conditions of this account to the customer. 2 Front End application defaults data from Aadhaar or Telco Connection Information The tablet-based front end application of the BCA will default the customer’s information received from UIDAI or from the mobile connection application on the bank AOF. In a scenario that the customer left the store and returned at another time, the bank a/c opening process can begin by entering customer’s mobile number or Request ID issued at the time of application to the mobile connection. 3 Enter Additional Details Opening a bank account may require the customer to provide additional information. This information is described below. 4 File Form 60 if PAN Not Available If the customer does not have a PAN card, a Form 60 is required to be filled for opening an account. The customer will provide additional details required for filling this form. This form will be generated electronically 5 Accept Application Digitally The customer will review application details which are entered by the BCA on the tablet. Then the customer will digitally accept the AOF by clicking the “Accept” button on the tablet application. 6 Generate Request ID The BC System generates a Trident Request ID once the AOF is submitted. This Request ID is displayed on the tablet of the BCA. The AOF cannot be considered as “Submitted” to BC System unless this Request ID is generated. An acknowledgement with the generated request id will be provided to the customer. 7 Generate AOF BCA generates the AOF electronically. If the customer has provided details for Form 60, then this form will also be generated electronically along with AOF with SBX logo. SBX will provide the logo and other collateral to RPSL so as to be able to include it in AOF. . The Request ID generated above is also captured on the AOF. 8 Customer Signs AOF The customer electronically signs (via Biometric scan of his finger prints) on generated AOF. 9 Submit AOF Digitally The AOF is complete, and the BCA submits the AOF digitally using tablet based application. It is submitted into BC System in real-time. Adxxxne Fxx Ixx Axx October 20xx Page 25 Process Note for BC-based Banking v 4.7 10 Print & Provide Request ID to Customer The customer is provided the Request ID in order to help him track status of the request at a later time and date. The request id should be printed and a copy should be given to the customer. It should be noted that Form 60 is required for opening even a mobile connection if the customer does not have a PAN card. Thus, it is likely that the customer may have filed for Form 60 while completing the formalities for opening mobile connection (Section 3.1.1). The details entered on the form may default on bank AOF. The customer details required for opening an account are listed below: No. Detail Optional/Mandatory Comments 1 Name Mandatory Sourced from Aadhaar, or captured by BCA 2 Address Mandatory Sourced from Aadhaar, or captured by BCA 3 Date of Birth Mandatory Sourced from Aadhaar, or captured by BCA 4 Nationality Mandatory Sourced from Aadhaar, or captured by BCA 5 Gender Mandatory Sourced from Aadhaar, or captured by BCA 6 Occupation Optional? Entered by BCA 7 Photo Mandatory Sourced from Aadhaar, or captured by BCA 8 Purpose of A/c ? Entered by BCA 9 Annual Income ? Entered by BCA 10 Source of Funds* ? Entered by BCA 11 Primary Mobile Number Mandatory An existing mobile number, the same should be quoted here. If the customer has applied for a mobile number, this should be left empty at the time of application. When the mobile number becomes available, it will be filled in by the system in digital application. 12 Alternate Mobile Number Optional The customer’s alternate mobile number, if available can be captured in this field. Entered by BCA 13 Email ID Optional Entered by BCA. Email id’s may not be available for all the customers and hence an exception may Adxxxne Fxx Ixx Axx October 20xx Page 26 Process Note for BC-based Banking v 4.7 need to be made by SBX’s compliance team for TDBA accounts. 14 Preferred Language Mandatory Defaults to English/Hindi. Options for regional/ local language may also be available. Selected by BCA from a drop-down menu 15 Declarations and Consent to T&Cs Mandatory Customer will click on tablet to reflect acceptance of the Terms & Conditions 16 PAN/Form 60 Mandatory Entered by BCA 17 Mode of Operation Mandatory Default Value: Sole 18 Nomination Details Optional Entered by BCA with customer’s guidance The details captured for nomination are provided below: No. Detail Optional/Mandatory Comments 1 Name Mandatory Sourced from Aadhaar, or captured by BCA 2 Address Mandatory Sourced from Aadhaar, or captured by BCA 3 Nominee Name Mandatory Entered by BCA 4 Relationship with Depositor Mandatory Entered by BCA 5 Nominee’s Age Mandatory Entered by BCA 6 Nominee’s DOB Mandatory Entered by BCA 7 Guardian’s Name Mandatory Entered by BCA 8 Guardian’s Age Mandatory Entered by BCA 9 Guardian’s Address Mandatory Entered by BCA 10 Witness Optional BCA will be the default recommended to be used. witness and is Note: As per RBI It is not mandatory for Banking accounts. Refer toRBI/2010-11/454 Adxxxne Fxx Ixx Axx October 20xx Page 27 Process Note for BC-based Banking v 4.7 DBOD.No. Leg. BC. 83/-/2010-11 dated- The details required for opening a Current Account are provided below: No. Detail 1 Type of Organization 2 Product Name Mandatory Domestic CA (non-editable default value) 3 Operating Mandate Mandatory Single (non-editable default value) 4 Contact Person Mandatory Sourced from Aadhaar, or captured by BCA - Optional/Mandatory Comments Proprietorship, Partnership Name Mobile Email 5 Address Mandatory Sourced from Aadhaar, or captured by BCA 6 Purpose of A/c Mandatory Investment, Transactions, Others 7 Source of Funds Mandatory Business Receipts, Sale of Investments, Income of Investments, Others 8 Turnover Mandatory 3.1.3 Logistics of Paper AOF The AOF for opening a bank account, duly signed by the customer, is a property of the bank. The bank is expected to preserve the AOF for 10 years as a record. It is thus necessary that the AOFs are preserved in the BC’s physical document management system (DMS). The document life cycle management is a separate process in itself and is out of scope of this process note. Note: SBX and RPSL have agreed that the physical documents will be maintained at RPSL during the duration of the agreement for BC services in line with RBI guidelines. RPSL will scan the AOF forms and submit scanned copies to SBX for archival. Adxxxne Fxx Ixx Axx October 20xx Page 28 Process Note for BC-based Banking v 4.7 ID Activity Description 1 BCA Deposits KYC docs to BC Store BCA may deposit KYC docs to BC-RPSL hub outlet once a day or week, depending on the operational convenience. This step of the process is designed keeping in view a general scenario that the BCAs may be operating from out of the store. The electronic version of the AOF and KYC docs is submitted to the BC-RPSL instantly, hence there is no operational risk to the bank. 2 Receipt Confirmation to BCA The store operator will review the papers received, and confirm this receipt digitally by marking the documents as received. The Request ID printed by the BCA and attached to the document could be used to identify the AOFs with which the submitted documents are associated. This step is especially incorporated into the flow in order to protect the BCA. 3 Collate KYC docs by Adxxxne Fxx Ixx Axx The store collates the documents sorted by BCA, and maintains them in October 20xx Page 29 Process Note for BC-based Banking v 4.7 BCA store’s physical document repository. 4 Handover documents to Logistics Partner BC-RPSL will print the digital AOF and collate it along with the corresponding KYC docs received from the BCA. A logistics partner will pick up the documents. 5 Deposit with DMS The logistics vendor will deposit documents with the DMS identified and contracted by RPSL. for this purpose. 6 Confirmation to CBS and BC System DMS confirms the receipt of KYC docs to SBX. The receipt of documents by DMS is recorded in CBS as well as BC System. DMS may provide an internal tracking number to CBS which could be useful at the time of request for retrieval of the document. 7 Safe Storage DMS takes ownership of documents, and stores it as per agreed SLA. Further automation of the document management process could be accomplished by printing Request ID in the form of a bar code or pasting it on the set of documents submitted by the customer.. This will automate the process of tracking these documents throughout physical logistics. 3.2 New TDBA Application using non-Aadhaar KYC If the customer does not have Aadhaar or the KYC related details in Aadhaar have changed (e.g. address, name etc) then, he will need to provide other documents as KYC. The table below provides acceptable KYC for SBX. The table below lists some of the acceptable self attested photocopy of the documents for KYC by the banks in India. KYC Type: Proof of Identity 1 Passport 2 PAN card 3 Voters Id card issued by Election Commission of India 4 Identify card having unique serial no., issued by employer (Central Govt., State Govt, Local government bodies, reputed private sector companies, Reputed educational institutes) 5 Driver’s License issued by RTO KYC Type: Proof of Address 1 Ration card issued by Govt. Adxxxne Fxx Ixx Axx October 20xx Page 30 Process Note for BC-based Banking v 4.7 2 Electricity bill 3 Telephone bill 4 Registered copy of the agreement for purchase/rent of property 5 Domestic LPG bill It should be noted that when the customer has Aadhaar, but if there are changes to key fields on it, non-Aadhaar KYC process should be followed. For example, if the customer’s actual address has changed after getting the Aadhaar card, a non-Aadhaar KYC document which proves the current address will be required. Similarly, if the customer changes his name, a valid KYC indicating the new name would be required. The BCA will perform OSV of KYC documents in this case. The same applies to photo as well. If the customer desires to update a new photo in the system (instead of accepting the photo provided by Aadhaar), non-Aadhaar KYC process will be followed. The front end application will not allow any changes to the data fetched through Aadhaar e-KYC. If the BCA amends any of the fetched data, then the non-Aadhaar KYC process will be followed. 3.2.1 Customer Opens A/c using non-Aadhaar KYC The customer submits KYC documents as per the norms of RBI in order to open a TDBA account. The customer may have already submitted documents for acquiring a mobile connection as per the norms of TRAI. In such a case, the same set of documents can be used for both the purposes. It is pertinent to note that actual process of procuring a mobile phone connection is more involved than documented here and should not be construed as a complete process for acquiring a mobile connection. The customer’s finger prints are captured during enrolment. These are maintained in RPSL’s IDAM system, and are utilized for authentication of the customer when he comes in for transaction. Adxxxne Fxx Ixx Axx October 20xx Page 31 Process Note for BC-based Banking v 4.7 ID Activity Description 1 Provide KYC to BCA Customer provides KYC documents to BCA 2 Enter Details in Front End App on Tablet BCA enters customer’s details as they are on the KYC into front end application on the tablet. 3 Capture Additional Detail Additional details required for bank account opening are provided. 4 Submit Request BCA submits request for opening a TDBA account to backend system. 4a Continue Mobile Process Adxxxne Fxx Ixx Axx If the bank account is being opened along with subscription to a mobile service then, the application allows completing the remaining part of mobile connection creation process (like including selection of tariff plans, provision of SIM card, etc.) October 20xx Page 32 Process Note for BC-based Banking v 4.7 5 Generate Request ID BC System (which is actually backend system established by RPSL) will generate a Request ID which will be displayed on the BCA’s tablet. 6 Print and Provide Request ID to Customer BCA prints and provides the Request ID to customer for future tracking. 3.2.2 AOF Submission with non-Aadhaar KYC The customer can open a TDBA account by providing non-Aadhaar KYC documents (refer to Appendix A for more details on KYC). In case, the customer has already provided KYC details for a mobile connection in BC outlet, then the details provided will be leveraged for opening Trident Digital Money account. The customer may decide to apply for the bank account at the same time as applying for the Mobile connection, or alternately do so at a later date and time. The above process is described below in detail: Adxxxne Fxx Ixx Axx October 20xx Page 33 Process Note for BC-based Banking v 4.7 ID Activity Description 1 Decision to Open Trident Digital Bank A/c The customer intends to open a Trident Digital Bank account. The BCA explains the terms and conditions of this account to the customer. 1a Front End application defaults Telco A/c Info If the customer is opening the TDBA account at the same time as opening a mobile connection, then the tablet-based front end application of the BCA will default the customer’s information on the bank AOF. In a scenario that the customer left the store and returned at another time, the bank a/c opening process can begin by entering customer’s mobile number or Request ID issued at the time of application to the mobile connection. 2 Provide KYC + Finger print scan The customer will provide KYC documents for opening a TDBA account (refer Appendix A on KYC details). In addition, all 10 fingers of the customer are scanned during the enrolment process. These scans are saved on RPSL’s systems, and are to be used for authentication of the customer at the time of transactions. 3 OSV of Additional KYC BCA performs “Original Seen and Verified” of KYC documents. 4 Enter Additional Details Opening a bank account may require the customer to provide additional information, especially if the customer intends to only open a TDBA account and does not avail of any other services at the outlet. 4a File Form 60 if PAN Not Available If the customer does not have a PAN card, a Form 60 is required to be filled for opening an account. The customer will provide additional details required for filling this form. 5 Accept Application Digitally The customer will review application details which are entered by the BCA on the tablet. Then the customer will digitally accept the AOF by clicking the “Accept” button on the tablet application. 6 Generate Request ID The BC System generates a Trident Request ID once the AOF is submitted. This Request ID is displayed on the tablet of the BCA. The AOF cannot be considered as “Submitted” to BC System unless this Request ID is generated. 7 Generate AOF BCA electronically generates the AOF with SBX logo from data available on the tablet. If customer had provided details for Form 60, this form will also be generated electronically.. The Request ID Adxxxne Fxx Ixx Axx October 20xx Page 34 Process Note for BC-based Banking v 4.7 generated above is captured on the AOF. 8 Customer Signs AOF The customer electronically signs (via biometric scan) on AOF. 9 Submit AOF Digitally The AOF is complete, and the BCA submits the AOF digitally using tablet based application. It is submitted into BC System in real-time. 10 Provide Request ID to Customer The Request ID generated is printed and provided to the customer in order to help him track the status of the request at a later time and date. Duplicate copies of the request id should be generated, as the BCA will also need one to attach it to the KYC documents submitted by the customer. 3.2.3 Scan KYC and Attach to Digital AOF The KYC documents which are signed by customer will be scanned. Further, the BCA will need to mark the KYC to be “Original Seen and Verified”. The following flowchart depicts this process: ID Activity Description 1 BCA scans the KYC documents provided by customer, and attaches it Scan KYC and Attach Adxxxne Fxx Ixx Axx October 20xx Page 35 Process Note for BC-based Banking v 4.7 to AOF electronically to the digital AOF. There is a possibility that this part of the process will overlap with the Mobile connection process, which needs to be handled during design of front end application. 2 Digital OSV of KYC BCA performs OSV of KYC documents submitted by the customer. The document (KYC) so submitted will be archived as per process mentioned in Section 3.1 3 Retrieve Customer Application BCA retrieves customer application on the tablet-based application by entering the Request ID printed on paper AOF. 4 Upload and Attach Scanned KYC docs BCA uploads scanned KYC documents and attaches it digitally to the customer’s digital application on the tablet. 5 Submit to BC System Customer’s application, along with scanned KYC docs, is submitted to the BC System for further processing. 6 Confirm Completion of AOF BC System assesses all data requirements, and confirms to BCA the complete submission of AOF for opening TDBA. 3.2.4 Logistics of Paper KYC docs to support AOF The logistics of paper AOF for non-Aadhaar KYC will be identical to that of Aadhaar-based KYC. Please refer 3.1.3 for complete details of this process. 3.3 Activities by BC Operations System and Team In the event that the customer does not have any existing mobile number, then the BC operations team will put the TDBA account under ‘HOLD’ status upon completion of TDBA application by BCA.. It is expected that the customer will get a new mobile connection in due course and provide it to BCA. This number is assigned to the AOF as soon as Telco’s system assigns and activates the number to the customer’s Mobile request. Note: The mobile no. is likely to be available immediately, however it may not be activated till the verification process by Telco is completed. This can take anywhere between 1 to 3 business days and needs to be confirmed. All applications, whether with Aadhaar KYC or non-Aadhaar KYC, will follow subsequent processes. Adxxxne Fxx Ixx Axx October 20xx Page 36 Process Note for BC-based Banking v 4.7 3.3.1 Assignment of Primary Mobile Number to Customer’s AOF ID Activity Description 1 Set Request on Hold The BC System will set an application for TDBA on Hold status, if a mobile number is not available in the AOF, when it is received from BCA’s front end application even if all necessary documents are complete. This is to ensure that the Primary Mobile Number is assigned to an account. It is expected that in such cases, the customer has applied for a new mobile connection and the mobile number is awaited. 2 Check Availability of Primary Mobile Number The BC System will check for availability of Primary Mobile Number in Telco’s backend system at periodic intervals. 3 Continue Hold If the number is not available (typically takes 15 minutes), the Hold status continues. 4 Assign Mobile Number to Request If mobile number is available, it is assigned to the TDBA request. 5 Remove Hold The Hold is removed from the request once mobile number is assigned Adxxxne Fxx Ixx Axx October 20xx Page 37 Process Note for BC-based Banking v 4.7 to it. 3.3.2 Review and Approval of TDBA Requests BC Operations Officer will be responsible for reviewing the data provided by customer, and validating its completeness and authenticity as compared to KYC. A series of checks (based on application UI design, usability preferences and finalisation of business rules) will be implemented upfront in the front end application which the BCA will use for creating account opening requests, but a few checks may need human review and intervention. These checks and verifications are performed by BCA or the front end application used by the BCA, before sharing the information with SBX. The business validations apart from the standard validations (e.g. age cannot be below 18 years so the DOB needs to validate accordingly). ID Activity Description 1 Open Request from Queue BC Operations Officer will be assigned a queue of account opening requests based on well-defined criteria (e.g. by geography, language, KYC-type, etc.). The Officer will open and review requests received typically on FIFO basis. However, he should also be able to pull up a Adxxxne Fxx Ixx Axx October 20xx Page 38 Process Note for BC-based Banking v 4.7 specified request. 2 Is KYC = Aadhaar? Check if Aadhaar is used as KYC, based on which the extent of validations may change. 3 Auto- or Group Approvals If Aadhaar is used as KYC, RBI’s mandatory requirements are satisfied. In this case, the Officer may opt to approve multiple such applications in bulk. 3a Optional Individual Approval In case the Officer wishes to review a specific Aadhaar KYC application, this is optionally possible. 4 Open Request and Verify In case of non-Aadhaar KYC, the Officer will open each individual account opening request and verify it against the KYC provided. The KYC, which is scanned and uploaded by BCA, will be available to the Officer for viewing purposes. 5 Update AOF if Required If the Officer finds minor inconsistencies after verifying AOF and KYC, say in spelling or other such details, he can update the AOF of the customer. 6 Is the AOF Approved? At this point, the Officer chooses to approve or reject the application. 7 Return to BCA for Review The Officer may decide to return an application to the BCA with appropriate reason. This reason will be visible to the BCA when he fetches the returned application form. 8 Send to CBS for Approval Applications with Aadhaar and non-Aadhaar KYC are submitted to CBS for SBX’s approval. 9 Update Status in BC System Depending on the decision taken by the Officer, the status of the request is updated in BC System. This status remains visible to the BCA if queried based on the Request ID. 3.3.3 Rejected Account Opening Request Processing In case the BC Operations Officer returns/rejects the request with a specific reason, the request will be visible to the BCA on his tablet/system in a queue of outstanding items to be acted upon. The BCA can correct the error (e.g. submission of a superior scan copy of a KYC, or correction of address), and resubmit the application. If the BCA does not correct the application, the BC System will close it after a predefined period of time. This duration of this time window is a policy decision to be arrived at by SBX and RPSL jointly. Depending on actual experience, the policy regarding this time window may evolve. The following flowchart depicts the processing of this request: Adxxxne Fxx Ixx Axx October 20xx Page 39 Process Note for BC-based Banking v 4.7 ID Activity Description 1 Open Rejected Request The BCA opens rejected requests from the queue of “Action Required” items on his tablet. 2 Review Reason for Rejection The BCA reviews the reason for rejection of the request. There could be several reasons for rejection of the request; these reasons need to be documented in the form of scenarios (by Operations team). 3 Contact Customer to Fix Issue The customer is contacted and appropriate inputs are received. 4 Issue Resolved? Decision point 5 Resubmit for Processing If the customer provides appropriate inputs, the issue can be considered as resolved, and the BCA can resubmit the application for review by BC Operations. Adxxxne Fxx Ixx Axx October 20xx Page 40 Process Note for BC-based Banking v 4.7 6 Re-process Request BC Operations Officer reviews the request and takes an appropriate decision. 7 Close Request If the BCA does not resolve issues, the BC System will automatically close the request after a predefined interval of time. If rejected, the customer may reapply for a bank account afresh after a cooling-off period of 1 quarter (How are the quarters going to be measured - 3 calendar months from the date of rejection OR Moving into the next quarter of the FY calendar will suffice?). Need to confirm on this criteria. 3.3.4 BCA hand-held device/Tablet/microATM – Operational Security The operations and movement of the BCA need to be tracked, as it will be important for audit and any dispute resolution with the customers. The following operational security measures are recommended for the purpose: • • • • • Geo mapping of the physical tablet/hand held device/microATM, to track BCA area of operation at any given point of time. This will help in monitoring if he is operating it from the designated location or within the prescribed limits. It is recommended that BCA should always login with his biometric authentication into the BC front end. This will avoid password sharing and delegation of activities to unauthorised persons. Accessing BC front end with a Password should be permitted as an exception (in case of biometrics not working/network issues etc.). Such access should be tracked by the BC Operations team and followed up with the agent. In order to avoid misuse of tablet in case of inactivity, there should be an “Auto-Logout” after every 5 minutes of inactivity. The duration of inactivity should be configurable, in case, the BC wants to customise it per agent. In case the BCA ID (for BC front end) gets locked; the BC Manager (sitting in the BC outlets) who is managing the BCA should have the access/rights in the BC front end system to unlock the ID. SBX’s Tech security (GIS) will review the BC’s front end application once it is finalised by RPSL. The above recommendations will be reviewed again along with the application review and modified appropriately. 3.4 Activities by SBX Team and CBS On completion of review of application by BC Operations teams, the application is transferred to SBX’s CBS system. A group of SBX’s officers belonging to Operations teams would manage the approval and rejection of applications. Adxxxne Fxx Ixx Axx October 20xx Page 41 Process Note for BC-based Banking v 4.7 Unlike in the case of BC Operations who can resend an application back to the BCA for correction and re-submission, SBX Operations will either reject or approve an application. Rejection will result in closure of the application, and the customer will be informed of the decision by the bank. Approval of account will result in creation of a new account into CBS. If there are minor errors in the customer AOF, then the same will be routed back to the BCA for rectification and relogin under the same request ID. The efficiency of BCA’s and other operational tasks will be tracked using MIS. 3.4.1 TDBA Request Processing ID Activity Description 1 Open Request from Queue SBX Operations Officer will be assigned a queue of account opening requests based on well-defined criteria (e.g. by geography, language, KYC-type, etc.). The Officer will open and review requests received typically on FIFO basis. However, he should also be able to pull up a specified request. 2 Is KYC = Aadhaar? Check if Aadhaar is used as KYC, based on which the extent of validations may change. Adxxxne Fxx Ixx Axx October 20xx Page 42 Process Note for BC-based Banking v 4.7 3 Auto- or Group Approvals If Aadhaar is used as KYC, RBI’s mandatory requirements are satisfied. In this case, the Officer may opt to approve multiple such applications in bulk. 3a Optional Individual Approval In case the Officer wishes to review a specific Aadhaar KYC application, this is optionally possible. 4 Open Request and Verify In case of non-Aadhaar KYC, the Officer will open each individual account opening request and verify it against the KYC provided. The KYC, which is scanned and uploaded by BCA, will be available to the Officer for viewing purposes. 5 Check for Minor errors If there are minor errors (key stroke/ typo errors), the form may be routed back to the BC Operations team for rectification and resubmission. 5a Correct the Minor errors BC Operations team will correct the minor errors (key stroke/ typo errors) and resubmit the form back to the SBX operations team for further processing. 6 Approved? 7 Send to CBS for A/c Opening On approval by SBX Officer, the application is sent to CBS for A/c creation. CBS creates accounts in real time. 8 Rejected Officer rejects request, and the application is sent for closure. 9 Update A/c & Status in BC System The status of the application is updated in the BC System. Also, the account number provided by CBS is also updated. 3.4.2 Post-processing after opening a TDBA in CBS Various systems and individuals (stakeholders) are updated with the status of the request. Adxxxne Fxx Ixx Axx October 20xx Page 43 Process Note for BC-based Banking v 4.7 ID Activity Description 1 Create A/c TDBA is created in CBS. This is a result of a series of steps involved in processing an application. 2 Update BC System CBS will send updates to the BC System (this may be synchronous or asynchronous) with the new account number associated with the Request ID. 3 Update Customer Record Customer’s record is updated in the BC System with the new TDBA number. Now the customer has both, mobile and bank accounts. 4 Update BCA Front End BCA is provided with the account number of the customer (or at least the update that an account has been created for the Request submitted by the BCA). 5 Send SMS to Customer BC Systems sends a SMS to the customer in his preferred language informing him that the account applied had been approved. He should visit the BCA outlet for next steps. Adxxxne Fxx Ixx Axx October 20xx Page 44 Process Note for BC-based Banking v 4.7 3.4.3 Statuses of an Account Request A request submitted by the customer through the BCA goes through a series of status changes. These various statuses and their description are provided below: Status Description CREATED Request created from BCA’s tablet and saved to the BC Operations System MOBILE_NUMBER_HOLD Awaiting creation/assignment/activation of mobile connection number to the customer READY_BC_OPS_REVIEW Ready for review by BC Operations Officials BC_OPS_APPROVED Reviewed and approved by BC Operations Officials BC_OPS_REJECTED Reviewed and rejected by BC Operations Officials BC_OPS_PENDING Kept pending by BC Operations Officials SBX_APPROVED Approved by SBX Officials SBX_PENDING Awaiting SBX decision SBX_REJECTED Rejected by SBX Officials ACCOUNT_CREATED Account number created for a request approved by SBX Officials ACCOUNT_INFORMED Account number informed to BC Operations System FINAL_CLOSURE Request is in one of the following states: • • • 3.5 SBX_REJECTED ACCOUNT_INFORMED BC_OPS_REJECTED (after predefined interval) Customer Account Maintenance Once an account is created, its maintenance can include several activities described below: • • • 3.5.1 Update of KYC details Creation of Username/Password for operation of the account using Mobile phone Update of Password Update of Customer KYC Adxxxne Fxx Ixx Axx October 20xx Page 45 Process Note for BC-based Banking v 4.7 ID Activity Description 1 Request for Update of KYC The customer requests update of KYC at BCA. 2 Submit Documents Customer submits documents. 3 Scan Documents BCA scans documents and updates them into front end system with a new Request ID. 4 Generate Request BCA generates a new request with the details of revised KYC included onto it. Biometric verification is required to authorise initiation of this transaction. 5 Customer Signs Request The customer electronically signs (via biometric scan) the generated request for update of KYC. 6 Scan and Upload KYC The BCA scans and uploads the supporting papers for KYC update Adxxxne Fxx Ixx Axx October 20xx Page 46 Process Note for BC-based Banking v 4.7 Papers request into BC System. 7 Review of KYC Update Request BC Operations Officer reviews the request for update of KYC and validates it. 8 Approved? 9 Resubmit Request 10 Review Request and KYC If BC Operations Officer does not approve the request, it is returned back to BCA for resubmission with appropriate comments. If BC Operations Officer approves request, it is reviewed by the SBX Operations Officer. In case it is rejected, then Inform the customer about rejection. 11 Approval Decision 12 Post in CBS/BC System If SBX Operations Officer approves request, it is posted to CBS and updated in BC System. 13 Inform Rejection to Customer In case SBX Ops rejects KYC Update, the customer is to be informed of the decision along with the reason through SMS/USSD. This message is formed by CBS, and provided to BC System for further communication to customer. The documents to support updation of KYC details will follow the document management process described in Sec. 3.1.3. 3.5.2 Close Customer Account A customer may request closure of his TDBA by requesting a BCA, sending an email communication to the branch, or alternately the bank itself may initiate the process. The process described here focuses on BCA-assisted closure of the bank account. A “reason for closure” has to be provided by the customer during the closure process. The BCA captures the request, including this reason, on a tablet-based application after two factor authentication of the customer. The request is submitted to SBX team which reviews the closure request. If the request is approved, there is further validation in CBS, such as to ensure that the balance in the account is nil. In case the balance in the account is NOT nil, then a notification/ SMS may be sent to the concerned customer informing him to withdraw the balance. Alternatively, an option of sending a cheque worth the balance amount at the registered address of the customer (after deducting administrative charges) can also be considered. On successful completion of these checks, the account is closed. Adxxxne Fxx Ixx Axx October 20xx Page 47 Process Note for BC-based Banking v 4.7 In case validations in CBS fail, the BCA, BC and SBX will work together to address this as an exception request and process it accordingly. The flowchart below describes this process in more detail: ID Activity Description 1 Request A/c Closure Customer approaches BCA and requests the closure of his TDBA. 2 Fill A/c Closure Form BCA fills in an A/c closure form on his tablet to capture mandatory and other information required by SBX for account closure requests. 3 Successful TFA Customer validates Authentication. 4 Review Request SBX Team receives the request and reviews it. Specifically, the reason for closing the account is crucial information. Besides this, they may review the business volumes, etc. which helps them arrive at a decision. Adxxxne Fxx Ixx Axx himself October 20xx successfully with Two Factor Page 48 Process Note for BC-based Banking v 4.7 5 Close A/c? The SBX official takes decision on approval of the request. 6 Return to BCA SBX official returns the application to BCA for further consideration with customer. 7 Inform Customer & Resubmit BCA informs customer of the decision and re-submits the request. 8 Validation in CBS Validate eligibility of customer’s account for closure in CBS: • • • • • • Only zero balance account can be closed Interest accumulated on the a/c has been capitalized No Standing Instructions exist on the a/c There is no block existing on the a/c There are no limits existing on the a/c No linked accounts or facilities SBX may define additional checks over a period of time as required. 9 Close A/c in CBS 10 Exception Processing 4.0 If all checks in CBS pass, close the account. In case closure of account is approved, but CBS checks do not pass due to failure of one or more of the above validations, SBX, RPSL and BCA may collectively undertake exception actions. Transactions Process Group RPSL and SBX envisage that the BCA will offer several services. These services will mean a broad range of transactions will be executed. These transactions are listed in the table below. Financial Transactions 1 Cash Withdrawals 2 Cash Deposits 3 Deposit of Outward Clearing Checks 4 Funds Transfer – Bank Account to PPI Wallet 5 Funds Transfer – PI Wallet to Bank Account 6 Funds Transfer – Third Party via NEFT/RTGS/IMPS 7 Funds Transfer – AEPS Adxxxne Fxx Ixx Axx October 20xx Page 49 Process Note for BC-based Banking v 4.7 8 Mobile Recharge 9 Bill Payments 10 Cash Management using Cash Management Agency Non-financial Transactions 1 Statement Requests 2 SI Set-up 3 SI Closure 4 Creation of User ID and Password 5 Update of User ID and Password 6 KYC Updates Authentication Mechanism in BCA Outlets The customer may have enrolled with Aadhaar or non-Aadhaar authentication. The BC System will identify the customer’s KYC, and process the request accordingly. The customer biometrics will be sent to RPSL’s own authentication server which will validate the finger prints of the customer against those captured at the time of enrolment. The server will respond with a Success or Failure result, and will also provide an Authentication Reference ID. If authentication is not successful, the customer may retry again. All authentication attempts are recorded, and controls may be implemented on the number of attempts before an account is locked for safety. This will ensure security of the accounts from fraud. Once TDBA is locked, the customer will need to create a Support Request with SBX to re-open the account by visiting the BCA and following a defined process. Refer to Section 5.0 for details of Customer Support processes. 4.1 Financial Transactions Financial Transactions lead to change in account balances in the books of the bank as maintained in CBS. The accounts typically involved in accounting entries are: • • • • Customer Account RPSL Settlement Account Transaction Revenue Account (where fees charged to the customer for undertaking a transaction is credited) Service Tax (treatment to be discussed) Adxxxne Fxx Ixx Axx October 20xx Page 50 Process Note for BC-based Banking v 4.7 It is not envisaged that accounting entries will be passed in the BC System. In fact, the entire financial transaction will pass through the BC System. Only if there is a cash transaction, this will be informed to the BC System by CBS. Refer Cash-out (Section 4.1.1) and Cash-in (Section 4.1.2) processes for details. The treatment for deduction of Service Tax on revenue earned by the bank/RPSL needs to be defined. 4.1.1 Cash Withdrawal by Customer A customer with a TDBA (TDBA) approaches the BCA to withdraw funds from the account. The customer is authenticated using biometrics (i.e. finger prints) for Aadhaar as well as non-Aadhaar customers. If authentication passes, the transaction is sent to CBS. If CBS approves the transaction (checks for sufficient balance in the account and other pre-configured checks), the BCA will dispense cash to the customer after the customer inputs the OTP received for the transaction. Since the OTP is sent to customers registered mobile number, the customer will not be able to deny receipt of cash in future, thus ensuring governance through the system. This protects the BCA and does away with the need to print a paper receipt and customer’s signature. The 2 factor authentication will act as a maker- checker for all types of transactions. When the transaction is approved, an SMS/USSD message is sent to customer’s primary mobile number informing him of the transaction + the updated balance in his account. This process is described in more detail in the flowchart below. Adxxxne Fxx Ixx Axx October 20xx Page 51 Process Note for BC-based Banking v 4.7 ID Activity Description 1 Request Cash Withdrawal Customer walks into the BCA’s outlet and requests cash withdrawal from his TDBA. 2 Two Factor Authentication of Customer (TFA Step-1) Two Factor Authentication (TFA Step-1) process is executed as described in detail in Section 4.1.3 below. 3 Biometrics Authentication? Refer Section 4.0.1. If authentication is unsuccessful, the customer may retry until the account is locked due to multiple unsuccessful authentication attempts. 4 Enter Amount to Withdraw + Submit If authentication is successful, BCA enters the amount of transaction as requested by the customer. 5 CBS Authentication CBS will check available balance in the account. If sufficient, the transaction will be approved. If not, it is rejected. In addition, CBS may Adxxxne Fxx Ixx Axx October 20xx Page 52 Process Note for BC-based Banking v 4.7 (TFA Step-2) perform several additional checks associated with the account and the transaction (based on pre-configured controls). The authentication will be accepted once these controls pass. TFA Step-2 is also performed as part of this step to validate the OTP entered by the user before approving the transaction. 6 CBS Provides Rejection Reason For rejected transactions, CBS will provide a reason for rejection. 7 Feedback to Customer The Reason for Rejection is provided to customer over SMS/USSD. 8 Accounting Entry in CBS, Inform Tablet Front End Application When the CBS authentication is successful, it will compute the transaction fees based on a Fees Structure (discussed separately). The fees and withdrawal amount is debited from the account of the customer and accounting entries are passed accordingly. At the same time, CBS synchronously informs BCA’s tablet of the success of the transaction, and includes information such as: • • • 9 Prepare Message for Customer Amount of Debit Transaction Fees Balance after deducting Transaction Amount and Transaction Fees. CBS prepares a message to be sent to customer, including details about the transaction such as amount, time, closing balance in the account, and charges for the transaction. This message is shared with BC System since SMS for customer communications are sent by BC System. 10 Send SMS/USSD to Customer BC System sends the SMS in customer’s Preferred Language. 11 Dispense Cash to Customer Based on the confirmation received from CBS on his tablet, BCA will dispense the transaction amount to the customer. 12 Confirm Receipt of Cash by Biometric Authentication Customer confirms receipt of cash by putting finger on the FP scanner. No paper receipt and signature of customer is required. 13 Track Cash Transaction BC System will track the cash transaction in order to maintain current cash balance in the store, as well as to account for banking cash transactions. Adxxxne Fxx Ixx Axx October 20xx Page 53 Process Note for BC-based Banking v 4.7 Accounting Entries in CBS (These are representative entries. The exact entries will vary depending on the type of account as well as prevailing regulatory guidelines from RBI. The same will be configured in the system for each type of account) Account Name Debit Customer TDBA 2,000 BC Settlement Account Customer TDBA Transaction Revenue 4.1.2 Credit Narration Customer Withdrawal 2,000 20 Transaction Fees 20 Cash Deposit by Customer The customer will use BCA’s services to deposit cash into his TDBA. The deposit of funds into customer account needs to be authenticated.. The amount to deposit will be entered on the tablet, and once transaction is confirmed by CBS, the BCA will collect cash. An entry will be done into BC System for Cash Management, and SMS/USSD message will be sent to customer as an electronic receipt. When another person intends to deposit funds in a customer’s account, apart from verification/authentication of his identity, his ID number will be captured in the system as a 3 rd party deposit ID. This will enable tracking the source of funds. It is suggested that the BCA’s application allows the capture of type of id and the id no, which was provided by the depositor (in case of 3 rd party deposits). The flowchart below depicts the process: Adxxxne Fxx Ixx Axx October 20xx Page 54 Process Note for BC-based Banking v 4.7 ID Activity Description 1 Request Cash Deposit into TDBA Customer walks into the BCA’s outlet and requests cash deposit into his TDBA. The customer identifies himself with biometric scan. 2 Another Person Provides KYC In case a non-customer intends to deposit funds into a customer’s account (such as in case a wife wishes to deposit funds in her husband’s account), the person’s KYC will be collected by the BCA. This is required in order to be able to track the source of funds. 3 Scan KYC and Upload The BCA will enter name of the other person, scan the KYC provided, and upload the KYC into the tablet. This KYC will remain attached to the transaction all the way through to CBS. 4 Enter Amount to Deposit + Submit If authentication is successful (customer biometrics or in case of non customer, verification and upload of KYC documents), BCA enters the amount of transaction as requested by the customer. Adxxxne Fxx Ixx Axx October 20xx Page 55 Process Note for BC-based Banking v 4.7 4a Enter PAN and Note Details The customer’s currency note details are entered. If the transaction value is more than Rs. 50,000 and PAN is not available on record, the PAN number of the customer is also entered into the system. 5 CBS Authentication CBS will perform several checks associated with the account and the transaction (based on pre-configured controls in the system). The authentication will be accepted once these controls pass. 6 CBS Provides Rejection Reason For rejected transactions, CBS will provide a reason for rejection. 7 Feedback to Customer The Reason for Rejection is provided to customer over SMS/USSD. 8 Accounting Entry in CBS, Inform Tablet Front End Application CBS will compute the transaction fee based on a predefined Fee Structure (discussed separately). The fee is debited and deposited amount is credited into the account of the customer, and accounting entries are passed accordingly. At the same time, CBS synchronously informs BCA’s tablet of the success of the transaction, and includes information such as: • • • • 9 Prepare Message for Customer Amount of Credit Transaction Fees, if any Balance after completing Cash deposit transaction A unique Transaction Reference ID CBS prepares a message to be sent to customer, including details about the transaction such as amount, time and date of transaction, closing balance in the account, and fee for the transaction. This message is shared with BC System since SMS/USSD for customer communications are sent by BC System. 10 Send SMS/USSD to Customer BC System sends the SMS/USSD in customer’s Preferred Language. 11 Collect Cash from Customer Based on the confirmation received from CBS on his tablet, BCA will collect the transaction amount from the customer. A printed acknowledgement of the transaction will be provided to the customer, if it is mandated by regulatory authorities. 12 Track Cash Transaction BC System will track the cash transaction in order to maintain current cash balance in the store, as well as to account for banking cash transactions. Adxxxne Fxx Ixx Axx October 20xx Page 56 Process Note for BC-based Banking v 4.7 Representative Accounting Entries (transaction charges/levies subject to regulatory approvals): Account Name Debit Customer TDBA BC Settlement Account Customer TDBA Transaction Revenue Credit Narration 2,000 Customer Deposit 2,000 20 Transaction Fees 20 4.1.3 Two Factor Authentication using OTP RBI’s Two Factor Authentication (TFA) requirement is to be implemented in BC model using the following two factors: • • Finger Print Biometrics of Customer Validation with One Time Password (OTP) sent to customer’s mobile number The following flowchart depicts this process in greater detail. Adxxxne Fxx Ixx Axx October 20xx Page 57 Process Note for BC-based Banking v 4.7 ID Activity Description 1 Customer Requests Transaction A customer requests transaction to be performed at BCA outlet. This could be one of several transactions discussed in this section. 2 Initiates Transaction using FP + Aadhaar # or A/c # Customer provides either Aadhaar number or TDBA number, and enters his biometrics on the finger print scanner. The validation request is sent to BC System. 3 FP Valid? (TFA – Step 1) BC System validates finger prints. The validation takes place with its own database of finger prints which were collected and stored in the IDAM during on-boarding. The transaction ends if FP does not match. Transaction is sent to CBS for 2nd factor validation using OTP. 4 Customer details provided to BC Adxxxne Fxx Ixx Axx The customer details available in CBS are provided to the BCA on his tablet. October 20xx Page 58 Process Note for BC-based Banking v 4.7 application 5 Verify details and provide Transaction details The customer can verify the particulars. After verification, the customer will provide the transaction details to the BCA (e.g. Cash withdrawal, Cash deposit, KYC updates etc.). 6 BCA submits transaction details The transaction details are submitted to the CBS system for further verification and processing. 7 Transaction possible? CBS system will perform appropriate verification to check the possibility of performing the requested transaction (e.g. in case of withdrawals, whether sufficient balance exists in the account or not). 8 CBS creates OTP CBS creates an OTP if the transaction can progress further and passes it over to BC System. 9 Send OTP to Customer BC System sends OTP to customer over SMS/USSD. 10 Customer receives OTP Customer receives OTP on mobile phone and enters the OTP on the tablet (BCA application), with BCA. 11 BCA submits OTP BCA submits OTP entered in tablet for validation. This request for validation is routed to CBS. 12 CBSvalidates OTP (TFA – Step 2) 13 Transaction Fails If OTP is not authenticated by CBS, transaction fails, and customer may have to retry. The CBS application may be configured to allow one more chance for the customer to enter the OTP (in case, the BCA types incorrectly due to communication problems) 14 Transaction Continues If the OTP is authenticated by CBS, the transaction continues. In case the customer does not remember account number or Aadhaar number, then the BCA’s application should allow fetching his details based on biometric scan. 4.1.4 Instant Fund Transfer from TDBA to PPI Wallet A customer wishing to load his prepaid wallet may do so by transferring funds from his TDBA in real time. After validating himself with TFA (2 factor authentication) process, the customer provides Aadhaar or TDBA number, PPI Wallet A/c number and the amount to be transferred. BCA’s tablet creates the transaction and submits it to CBS for approval. On approval by CBS, it is submitted to the Adxxxne Fxx Ixx Axx October 20xx Page 59 Process Note for BC-based Banking v 4.7 BC System for seeking approval from PPI System. Once this approval is also available, the transaction is executed between CBS and PPI Systems. The following flowchart depicts this process in more detail: ID Activity Description 1 Customer Requests Fund Transfer Customer approaches the BCA and requests funds transfer to his PPI Wallet. 2 TFA Success? (TFA Step - 1) Two Factor Authentication is executed (TFA Step - 1). Refer section 4.1.3 for details of TFA 3 Customer Provides TDBA # and PPI Wallet # Customer provides TDBA number and PPI Wallet number to the BCA. The TDBA number may have already been provided in Step 2 above. Instead of the PPI Wallet number, mobile number of the customer may Adxxxne Fxx Ixx Axx October 20xx Page 60 Process Note for BC-based Banking v 4.7 also be acceptable. 4 Enter Amount + Submit BCA enters amount of transaction in the tablet application and submits the transaction request. 5 CBS Approval (TFA Step - 2) Transaction is sent to CBS for approval. TFA Step – 2 is also executed here. Refer section 4.1.3 for details of TFA 6 Provide Reason for Rejection If CBS application does not approve transaction, a reason for rejection is provided. 7 Provide Feedback to Customer Based on inputs received from CBS, BC System sends an SMS/USSD message indicating the reason for rejection of transaction. 8 Telco Approval If CBS application approves transaction, it is sent to the PPI Wallet System for approval. 9 Feedback to Customer for Rejection If PPI Wallet System rejects transaction, the customer is sent an SMS/USSD message indicating the reason. (Although rejections are rare, however, this is possible due to various reasons. For e,g - restrictions on the PPI wallet for receiving funds, high value transfers not permissible, daily limits set by regulators etc.) 10 Accounting Entry, Confirmation to BCA’s Tablet If PPI Wallet System approves the transaction, the accounting entry is passed in CBS, and a confirmation of the transaction is sent to BCA’s tablet to display to customer. 11 CBS Prepares Message for Customer For successful transactions, CBS prepares a message for customer indicating the following details: • • • • • • • 12 Send Message to Customer PPI Wallet Number Credited Amount Time and Date Current Balance in TDBA Current Balance in his PPI Wallet A unique Transaction Reference ID Transaction Fee Charged, if any The Success message created by CBS is sent to the customer’s mobile phone as an electronic receipt. Representative Accounting Entries (transaction charges/levies subject to regulatory approvals): Account Name Adxxxne Fxx Ixx Axx Debit Credit Narration October 20xx Page 61 Process Note for BC-based Banking v 4.7 Customer TDBA 2,000 Transfer to PPI Wallet # xyz PPI Wallet Settlement Account Customer TDBA 2,000 20 Transaction Fees Transaction Revenue 20 4.1.5 Instant Fund Transfer from PPI Wallet to TDBA Customer may also transfer funds from PPI Wallet to the TDBA (TDBA). The customer authenticates himself through Two Factor Authentication as required by RBI. On confirmation, the transaction is submitted to CBS, and after CBS authorizes it, it is submitted to PPI Wallet System. Finally, on authorization by the PPI Wallet System, the transaction is executed and accounting entries are passed. It is assumed here that the customer has verified that the PPI wallet has sufficient funds before initiating the transfer, as the wallet belongs to the customer. The following flowchart depicts this process in detail. Adxxxne Fxx Ixx Axx October 20xx Page 62 Process Note for BC-based Banking v 4.7 ID Activity Description 1 Customer Requests Fund Transfer Customer approaches the BCA and requests funds transfer from PPI Wallet to TDBA. 2 Customer particulars verification The beneficiary customer details are verified before proceeding further. 3 Customer Provides TDBA # and PPI Wallet # Customer provides TDBA number and PPI Wallet number to the BCA. The TDBA number may have already been provided in Step 2 above. 4 Enter Amount + Submit BCA enters amount of transaction in the tablet application and submits the transaction request. 5 CBS Approval Transaction is sent to CBS for approval (To check, that there are no blocks or restrictions placed on the beneficiary account). Adxxxne Fxx Ixx Axx October 20xx Page 63 Process Note for BC-based Banking v 4.7 6 Provide Reason for Rejection If CBS application does not approve transaction, a reason for rejection is provided. 7 Provide Feedback to Customer Based on inputs received from CBS, BC System sends an SMS/USSD message indicating the reason for rejection of transaction. 8 Telco Approval If CBS application approves transaction, it is sent to the PPI Wallet System for approval. 9 Feedback to Customer for Rejection If PPI Wallet System rejects transaction, the customer is sent an SMS/USSD message indicating the reason. 10 Accounting Entry, Confirmation to BCA’s Tablet If PPI Wallet System approves the transaction, the accounting entry is passed in CBS, and a confirmation of the transaction is sent to BCA’s tablet to display to customer. 11 CBS Prepares Message for Customer For successful transactions, CBS prepares a message for customer indicating the following details: • • • • • • • 12 Send Message to Customer PPI Wallet Number Debited Amount Time and Date Current Balance in TDBA Current Balance in his PPI Wallet A unique Transaction Reference ID Transaction Fee Charged, if any The Success message created by CBS is sent to the customer’s mobile phone as an electronic receipt. Representative Accounting Entries (transaction charges/levies subject to regulatory approvals): Account Name Debit Customer TDBA PPI Wallet Settlement Account Customer TDBA Transaction Revenue Adxxxne Fxx Ixx Axx Credit Narration 2,000 Transfer from PPI Wallet # xyz 2,000 20 Transaction Fees 20 October 20xx Page 64 Process Note for BC-based Banking v 4.7 4.1.6 Funds Transfer from CBS to CBS Accounts A customer may wish to remit funds from his TDBA to another TDBA, or in future, other type of account on CBS. He will first authenticate himself with Two Factor Authentication as required by RBI. Once authenticated, he will provide the source and destination TDBA numbers, and the amount to be transferred to the BCA. The BCA will enter these details and submit the transaction to CBS. Once CBS application approves the transaction, appropriate accounting entries are passed and the customer is informed through SMS. A detailed outline of this process is provided in the following flowchart. ID Activity Description 1 Customer Requests Customer approaches the BCA and requests funds transfer from his Adxxxne Fxx Ixx Axx October 20xx Page 65 Process Note for BC-based Banking v 4.7 Fund Transfer TDBA to another TDBA. 2 TFA Success? (TFA Step – 1) Two Factor Authentication is executed. Refer section 4.1.3 for details of TFA 3 Customer Provides TDBA # and PPI Wallet # Customer provides his TDBA number and destination TDBA number to the BCA. His TDBA number may have already been provided in Step 2 above. 4 Enter Amount + Submit BCA enters amount of transaction in the tablet application and submits the transaction request. 5 CBS Approval (TFA Step -2) Transaction is sent to CBS for approval. TFA Step – 2 is executed here. Refer section 4.1.3 for details of TFA 6 Provide Reason for Rejection If CBS application does not approve transaction, a reason for rejection is provided. 7 Provide Feedback to Customer Based on inputs received from CBS, BC System sends an SMS/USSD message indicating the reason for rejection of transaction. 8 Accounting Entry, Confirmation to BCA’s Tablet If CBS application approves the transaction, the accounting entry is passed in CBS, and a confirmation of the transaction is sent to BCA’s tablet to display to customer. 9 CBS Prepares Message for Customer For successful transactions, CBS prepares a message for customer indicating the following details: • • • • • • • 10 Send Message to Customer TDBA Number Debited Destination account number Amount Time and Date Current Balance in TDBA A unique Transaction Reference ID Transaction Fee Charged The Success message created by CBS is sent to the customer’s mobile phone as an electronic receipt. Representative Accounting Entries (transaction charges/levies subject to regulatory approvals): Account Name Debit Customer TDBA 2,000 Adxxxne Fxx Ixx Axx Credit Narration Transfer from to Destination TDBA # October 20xx Page 66 Process Note for BC-based Banking v 4.7 Destination TDBA 2,000 Customer TDBA 20 Transaction Revenue Transaction Fees 20 4.1.7 Fund Transfer from CBS to Third Party Account via NEFT The customer can remit funds to a 3rd party who holds an account in another bank in India. The fund transfer will take place over NEFT. Since transactions do not execute in real time on NEFT, the credit to the recipient party’s account is delayed. However, the customer’s account is debited immediately. ID Activity Description 1 Customer Requests Fund Transfer Customer approaches the BCA and requests funds transfer from his TDBA to a 3rd party account belonging to another bank. Adxxxne Fxx Ixx Axx October 20xx Page 67 Process Note for BC-based Banking v 4.7 2 TFA Success? (TFA Step – 1) Two Factor Authentication is executed (TFA Step – 1). Refer section 4.1.3 for details of TFA. 3 Customer Provides Source TDBA and 3rd Party A/c Details Customer provides his TDBA number and destination party account details to the BCA. His TDBA number may have already been provided in Step 2 above. Specifically, the customer will provide the following details: • • • • Bank Name Bank Branch IFS Code Account Number The tablet front end should provide List of Values options to select the above details so as to reduce errors in data entry. Account Number will, however, be entered manually. 4 Enter Amount + Submit BCA enters amount of transaction in the tablet application and submits the transaction request. 5 CBS Approval (TFA Step -2) Transaction is sent to CBS for approval. TFA Step – 2 is executed here. Refer section 4.1.3 for details of TFA. 6 Provide Reason for Rejection If CBS application does not approve transaction, a reason for rejection is provided. 7 Provide Feedback to Customer Based on inputs received from CBS, BC System sends an SMS/USSD message indicating the reason for rejection of transaction. 8 Accounting Entry, Confirmation to BCA’s Tablet, Submit to NEFT If CBS application approves the transaction, the accounting entry is passed in CBS, and a confirmation of the transaction is sent to BCA’s tablet to display to customer. CBS submits the transaction to RBI’s NEFT for execution. Since NEFT cycle runs periodically (11 times/day on business days/weekdays), the transaction waits until it is posted into the next cycle. If credit to destination account fails, the transaction is reversed and the customer’s account is credited back with the debited amount. 9 CBS Prepares Message for Customer For successful transactions, CBS prepares a message for customer indicating the following details: • • • Adxxxne Fxx Ixx Axx TDBA Number Debited Amount Time and Date October 20xx Page 68 Process Note for BC-based Banking v 4.7 • • • Current Balance in TDBA A unique Transaction Reference ID Transaction Fee Charged, if any The message may be sent in two stages: • • When transaction is submitted to NEFT After NEFT confirms success or failure of the transaction Communication model followed typically for usual NEFT transactions may be followed in this case. 10 Send Message to Customer The Success message created by CBS is sent to the customer’s mobile phone as an electronic receipt. Representative Accounting Entries (transaction charges/levies subject to regulatory approvals): Account Name Debit Customer TDBA 2,000 NEFT Settlement A/c Customer TDBA Transaction Revenue Credit Narration Funds Transfer to 3rd Party A/c 2,000 20 Transaction Fees 20 4.1.8 Bill Payments (One Time) While customers will have the option to pay bills through their mobile phone, they can also do so through the BCA. Bill payments could be either one-time payments, or alternately could be “View and Pay” type. We define the process for one time payments in this section, and the next section defines “View and Pay” option. Adxxxne Fxx Ixx Axx October 20xx Page 69 Process Note for BC-based Banking v 4.7 ID Activity Description 1 Requests Bill Payment Customer requests to pay bill at BCA outlet. 2 Biometric Validation The customer validates his biometric using IDAM System. 3 Enter Transaction Details The BCA enters following bill payment details on behalf of the customer: Remember Biller Selection + Submit The customer selects Remember Biller option to save the details for easy payment the next time. BCA submits the request to CBS. 4 Adxxxne Fxx Ixx Axx • • • • • • Utility Type Biller Unique Reference Numbers (provided by biller) Reference Number 2 to 10 (as required by the biller) Amount A unique Transaction Reference ID October 20xx Page 70 Process Note for BC-based Banking v 4.7 5 Generate OTP CBS generates OTP and sends to BC System. 6 Send OTP to Customer BC System sends OTP to customer over SMS/USSD. 7 Receive OTP Customer receives OTP over his primary mobile number. 8 Enter OTP BCA enters OTP received by customer into the tablet for authentication. 9 OTP Validation CBS validates the OTP and provides Success or Failure notification. 10 Execute Transaction If Validation is successful, CBS application executes transaction by debiting customer account and crediting the Settlement Account of the biller. Transaction Fee, if any is also deducted from customer account. 11 Inform Customer BC System informs the customer either using USSD or SMS of the Success or Failure of the transaction. If the transaction fails, customer will be informed of the reason of failure as provided by CBS. If it succeeds, the customer will be informed of the following details: • • • • • • Name of Biller Amount of Transaction Time and Date of Transaction A unique Transaction Reference ID Balance remaining in the account Transaction Fee, if any charged to the customer Representative Accounting Entries (transaction charges/levies subject to regulatory approvals): Account Name Debit Customer TDBA 2,000 Biller Settlement A/c Customer TDBA Transaction Revenue Credit Narration Bill Payment to Biller Reference # 2,000 20 Transaction Fees 20 4.1.9 View and Pay Registration The customer can register a biller with specific details with a BCA so as to accelerate the payment of a bill on a regular basis. The registration requires the customer to authenticate using biometrics, and then provide reference details provided by the biller. These reference details are validated by the backend BC System against rules provided by the biller. Adxxxne Fxx Ixx Axx October 20xx Page 71 Process Note for BC-based Banking v 4.7 ID Activity Description 1 Requests Biller Registration The customer requests “View and Pay” biller registration at BCA’s outlet. 2 Customer’s Biometric Authentication The customer validates himself with biometrics authentication using IDAM system. If authentication fails, the process ends. 3 Enter Details for Each Biller The customer provides details of each biller to the BCA who enters them into the tablet. These details are sent to the BC System interactively for validation. Any errors provided by the BC System are corrected. 4 Validate Details for Each Biller and Return Errors BC System returns validation errors for the details submitted by the BCA on behalf of the customer. When there are no errors, the registration is ready for submission. 5 Submit Registration BCA submits registration after resolving all errors and warning raised by the BC System during process of registration. 6 Save Registration Registration is saved in BC System against the customer. Adxxxne Fxx Ixx Axx October 20xx Page 72 Process Note for BC-based Banking v 4.7 4.1.10 View and Pay Processing A View and Pay registration created by a customer will send a reminder for payment 5 days before the due date. The customer approaches BCA for the payment, and authenticates biometrically. The amount to be paid to a given biller can be edited before final payment takes place. On submission of the payment, the transaction is approved by CBS. If approved or rejected, the customer is notified appropriately. The flowchart below depicts this process pictorially. ID Activity Description 1 Receive Billing Updates from Billers Based on “View and Pay” registrations done by customers, the BC System receives latest billing details from billers. 2 Send Reminder SMS to BC System sends a reminder message to the customer 5 days before Adxxxne Fxx Ixx Axx October 20xx Page 73 Process Note for BC-based Banking v 4.7 Customer the due date of a specific biller’s payment. The SMS will include details of biller and amount due. 3 Requests Bill Payment Customer approaches the BCA for payment. 4 TFA Successful? Customer is authenticated through 2 factor authentication (combination of biometrics and OTP). Refer section 4.1.3 for details of TFA. 5 Validate and Edit Amount to Pay The customer reviews the amount and may opt to change it before accepting to pay it. 6 Submit Payment BCA submits payment to the BC System. 7 CBS Approval CBS approves or rejects the payment request. 8 Accounting Entry, Confirm to BCA If CBS application approves the payment, the accounting entries are passed, and the BCA’s tablet is informed of the success of the transaction. 9 Prepare Message for Customer CBS prepares a message for the customer providing several details, and this message acts as an electronic receipt. The details included are: • • • • • Biller’s Name Transaction Reference Number Amount Date and Time of Transaction Balance Amount in TDBA 10 Send Message to Customer BC System sends the message to the customer over SMS/USSD. 11 Provide Failure Reason In case CBS application rejects the transaction, CBS provides a rejection reason. 12 Feedback to Customer BC System informs customer of the rejection of the transaction. Representative Accounting Entries (transaction charges/levies subject to regulatory approvals): Adxxxne Fxx Ixx Axx October 20xx Page 74 Process Note for BC-based Banking v 4.7 Account Name Debit Customer TDBA 2,000 Biller Settlement A/c Credit Narration Bill Payment to Biller Reference # 2,000 Customer TDBA 20 Transaction Revenue Transaction Fees 20 4.1.11 Recharge Mobile Customer can recharge their prepaid mobile number using funds in TDBA. The flowchart below describes the process. ID Activity Adxxxne Fxx Ixx Axx Description October 20xx Page 75 Process Note for BC-based Banking v 4.7 1 Request Mobile Recharge Customer requests mobile recharge from funds in his TDBA. 2 Successful Biometric Authentication BCA authenticates customer with his biometrics. If not authenticated, the process comes to an end. 3 Collect Mobile Recharge Details and Submit BCA collects mobile recharge details of the customer: • • • • Mobile Number Mobile Operator Amount of Recharge Selection on whether to remember this recharge These details are submitted to BC System and through it to CBS. 4 Generate OTP and Send to Customer CBS generates OTP and is sent to the customer using BC System’s SMS/USSD mechanism. 5 Receive OTP and input in to BCA’s application Customer receives OTP and enters it in to the BCA’s application to continue the processing. 6 Submit OTP and Validate with CBS BCA submits the OTP and validates it with CBS. If not validated, the process ends and may need to be restarted. 7 Validate Customer Request BC System will validate details of customer’s request including biller limits. 8 Approve Transaction CBS approves transaction (based on account balance, and other transaction checks). If not approved, the transaction is cancelled and customer may have to restart. 9 Submit to Aggregator The request for prepaid recharge is submitted to the aggregator. 10 Accounting Entry Customer’s account is debited in CBS, and appropriate accounting entries are passed. 11 Inform Customer The customer is informed of the success of the transaction. Representative Accounting Entries (transaction charges/levies subject to regulatory approvals): Account Name Debit Customer TDBA 2,000 Aggregator Settlement A/c Adxxxne Fxx Ixx Axx Credit Narration Recharge of Mobile Number ### 2,000 October 20xx Page 76 Process Note for BC-based Banking v 4.7 Customer TDBA 20 Transaction Revenue Transaction Fees 20 4.1.12 Cash Management It has been decided to utilize BC-RPSL hub/retail stores for cash management. Each BCA is associated with a retail store, and will either collect or deposit cash at the store. All Cash-in and Cash-out transactions undertaken by the BCA are reported to Cash Management module in the BC System, and it will track the amount available with every BCA. The store in turn will leverage SBX’s cash management services through Cash Management Agency (CMA). The CMA will pick cash from the stores or deposit it at the stores as appropriate. Note: Cash management between SBX and Hub locations of partner to be managed by SBX’s Cash Management Services team. . A single settlement account will be created for RPSL, and sub-accounts will be set-up for each retail store. The accounting entries for cash-in and cash-out transactions are shown below: Cash-in: Account Name Debit Customer TDBA Aggregator Settlement A/c Credit Narration 2,000 Cash-in at BCA xyz 2,000 Cash-out: Account Name Debit Customer TDBA 2,000 Aggregator Settlement A/c Credit Narration Cash-out at BCA xyz 2,000 4.1.13 Deposition of Outward Clearing Cheques TDBA design does not permit issuance of cheque-books to customers. The customer is however, permitted to deposit funds into his account through cheques issued in his name by other parties. The customer deposits the cheque with the BCA with his A/c # written at the back of the cheque. The cheque is collected by a vendor and deposited to Central Cheque Processing Unit (CCPU). CCPU has an existing process to clear cheques which will be followed. Adxxxne Fxx Ixx Axx October 20xx Page 77 Process Note for BC-based Banking v 4.7 The credit of account after clearing the cheques as well as handling of mutilated/dishonoured cheques will follow existing process. The process is depicted in detail in the following flowchart: ID Activity Description 1 Customer Approaches BCA for Cheque Deposit The customer holds an account in CBS. 2 Write A/c # on back of cheque Customer writes his A/c # (in CBS) on the back of the cheque. If a TDBA customer does not remember his account number, he can provide his biometrics and fetch the account number. 3 BCA Accepts Cheque 4 Enters Cheque Details Adxxxne Fxx Ixx Axx Cheque details such as cheque number, bank, and date are entered on October 20xx Page 78 Process Note for BC-based Banking v 4.7 on Tablet and Submit the tablet by the BCA. These details are saved into the BC System. 5 Send Cheque Receipt Message to Customer BC System sends a message (SMS/USSD) to customer’s primary mobile number confirming receipt of the cheque. 6 Receive Confirmation Customer receives confirmation that the system has noted cheque deposition by the customer. This message serves the function of a paper Pay-in-slip which is issued by branch staff on acceptance of a cheque for deposit into an account. 7 Hands over cheque to vendor BCA hands over cheque to vendor who deposits it to Central Cheque Processing Unit (CCPU) through an existing process. 8 Process Cheque CCPU processes cheque based on the A/c number written on the back of the cheque. Credit is done to CBS or CBS based on the account numbers. 9 Mutilated? CCPU checks if the cheque is mutilated. 10 Process Accounting Entries CBS will process accounting entries as appropriate. 11 Send Cheque Credit Message to Customer On crediting customer account in CBS, the BC System is informed and it sends the message to customer’s primary mobile number. 12 Follow Present Process for Mutilated Cheques If the cheques are mutilated or dishonoured, CCPU will follow existing process. Representative Accounting Entries (transaction charges/levies subject to regulatory approvals): Account Name Debit Customer TDBA Cheque Clearing Suspense Customer TDBA Transaction Revenue 4.2 Credit Narration 2,000 Customer Deposit 2,000 20 Transaction Fees 20 Non-Financial Transactions Non-financial transactions performed at the BCA are listed below: Adxxxne Fxx Ixx Axx October 20xx Page 79 Process Note for BC-based Banking v 4.7 • • • • • • • Statement Requests (Physical Paper Printing) Statement Requests (eStatement) Statement on email Mobile Number/Email Update Address Change Standing Instructions Set-up Standing Instructions Closure The process followed for each of these transactions is detailed in subsequent sections. 4.2.1 Statement Requests (Physical Paper Printing) Customers will not be sent paper requests as part of product definition. However, if a customer needs one, he can approach the BCA and request it. The BCA will authenticate the customer using biometrics and generate the statement for a specific account number and date range. This statement will then be printed and issued to the customer. The BCA will not be allowed to save the statement on his tablet. This restriction needs to be implemented by the system and should be provided as a requirement to the team delivering the software application. The following flowchart depicts this process. ID Activity Adxxxne Fxx Ixx Axx Description October 20xx Page 80 Process Note for BC-based Banking v 4.7 1 Request Paper Statement Customer requests paper statement. 2 Perform 2 Factor Authentication TFA is performed. If it is successful, then the process moves to the next step. Refer section 4.1.3 for details of TFA. If TFA fails, then the process ends immediately. 3 Enter A/c # and Date Range BCA enters account number and date range for generating statement. 4 Generate Statement and Provide to Tablet CBS generates statement and returns it to the BCA’s tablet. 5 Deduct Fee for Service CBS will deduct fee for the service of printing the statement beyond the no. of free statements permitted for this type of account. The permitted no. of free statements need to be tracked separately within the system and is currently out of scope of this process. 6 Print Statement BCA prints statement on his local printer. 7 Inform Customer of Fee Charged The customer is informed of the fees charged to him for the services he received through an SMS/USSD message. Representative Accounting Entries (transaction charges/levies subject to regulatory approvals): Account Name Debit Customer TDBA 20 Transaction Revenue Credit Narration Customer Service Fees 20 4.2.2 Statement Request (eStatement) The customers can request account statement to be sent to their email address at a BCA outlet. He will be authenticated using biometrics, and then he will provide account number and date range for the statement. BC System will accumulate several such requests from customers and submit to CBS in batch mode. The generated statements will be mailed to the customers. The following flowchart depicts this process. Adxxxne Fxx Ixx Axx October 20xx Page 81 Process Note for BC-based Banking v 4.7 ID Activity Description 1 Request eStatement Customer requests eStatement. 2 Perform 2 Factor Authentication TFA is performed. If it is successful, then the process moves to the next step. Refer section 4.1.3 for details of TFA. If TFA fails, then the process ends immediately. 3 Enter A/c # and Date Range BCA enters account number and date range for generating statement. 4 Queue Request BC System queues the request for generation of the statement. Several requests are accumulated. 5 Submit Requests for eStatements BC System submits multiple requests for eStatements to CBS. Adxxxne Fxx Ixx Axx October 20xx Page 82 Process Note for BC-based Banking v 4.7 6 Generate eStatements and Return CBS generates eStatements based on inputs provided and returns them to BC System. 7 Deduct Service Fee CBS deducts service fee from customer’s TDBA. 8 Mail eStatement to Recipients BC System mails eStatements to customers. 9 Inform Customer of Fee Charged The customer is informed of the fees charged to him for the services he received through an SMS/USSD message. Representative Accounting Entries (transaction charges/levies subject to regulatory approvals): Account Name Debit Customer TDBA 20 Transaction Revenue Credit Narration Customer Service Fees 20 4.2.3 Statement on Email (Regular Generation) The customers are entitled to receive their statements on regular basis over email. The process for setting this up is shown below. The suggested periodicity is “monthly” for sending email statements in line with the practice followed for normal accounts. Adxxxne Fxx Ixx Axx October 20xx Page 83 Process Note for BC-based Banking v 4.7 ID Activity Description 1 Request Email Statement Customer requests email statement on regular basis. 2 Perform 2 Factor Authentication TFA is performed. If it is successful, then the process moves to the next step. Refer section 4.1.3 for details of TFA. If TFA fails, then the process ends immediately. 3 Enter TDBA # and Submit BCA enters customer’s account number and submits request. 4 Validate Email Address Customer’s email address is validated by BCA for correctness and confirmed with customer. 5 Perform Other Validations CBS will perform validations as per present BAU (unclear). 6 Generate Statements CBS generates statements regularly at defined frequency. 7 Mail to Customer The statements are mailed to customer’s email address by the BC System. 4.2.4 Mobile Number/Email Update Adxxxne Fxx Ixx Axx October 20xx Page 84 Process Note for BC-based Banking v 4.7 ID Activity Description 1 Request Update of Mobile Number/Email Customer approaches BCA and requests update of his mobile number and/or email address. 2 Perform 2 Factor Authentication TFA is performed. Here the OTP is sent to the registered (old) mobile number. If it is successful, then the process moves to the next step. If TFA fails, then the process ends immediately. Refer section 4.1.3 for details of TFA. 3 Update Email/Mobile # BCA updates the new mobile number or email. 4 Validate Details Tablet front end application validates mobile # and email for correctness, and submits it to CBS. 5 Update Details in CBS Details are updated in CBS. 4.2.5 Update of Address Refer Section 3.5.1 on Account Maintenance 4.2.6 Standing Instructions Set-up The process of setting up Standing Instructions is depicted below: Adxxxne Fxx Ixx Axx October 20xx Page 85 Process Note for BC-based Banking v 4.7 ID Activity Description 1 Request Set-up of Standing Instructions Customer approaches BCA and requests set-up of SI. 2 Perform 2 Factor Authentication TFA is performed. If it is successful, then the process moves to the next step. Refer section 4.1.3 for details of TFA. If TFA fails, then the process ends immediately. 3 Review Existing and Add New Payees The customer can review existing payees or add new payees as required. 4 Provide Details for Each Payee The customer provides following SI details for each payee: 5 OTP Verification An OTP is sent to customer by CBS, which is verified by BCA by entering into the tablet. If the verification fails, SI update is disallowed. 6 Store SI in System If OTP verification is successful, the SI is stored in CBS for future Adxxxne Fxx Ixx Axx • • • • • Date on which SI should be executed Frequency End Date Amount to be debited Destination A/c Details October 20xx Page 86 Process Note for BC-based Banking v 4.7 execution. 4.2.7 SI Closure SI can be closed at BCA outlet after biometric authentication of the customer. The BCA will display a list of all SIs set up, and the customer can choose the ones that are to be deleted. ID Activity Description 1 Request Closure of Standing Instructions Customer approaches BCA and requests closure of SI. 2 Perform 2 Factor Authentication TFA is performed. If it is successful, then the process moves to the next step. Refer section 4.1.3 for details of TFA. If TFA fails, then the process ends immediately. 3 Display Current Sis The customer can review existing Standing Instructions. 4 Select SI for Closure Customer selects SIs for closure. 5 Submit Request to CBS BCA submits the request to CBS for closure of SIs. Adxxxne Fxx Ixx Axx October 20xx Page 87 Process Note for BC-based Banking v 4.7 6 5.0 Implement Closure of Sis CBS closes the SIs as requested by the customer. A confirmation is displayed on the tablet and sent to customer by SMS/USSD. Customer Service The range of services provided by the BCA to customers is broad - encompassing telecommunication products, white goods, retail products and several other products along with banking. It is likely that the BCA is unable to provide appropriate support and information to the customer is certain situations on the spot. A Customer Service Centre is required to provide that support. RPSL will establish a support centre to respond to customers’ queries related to all aspects of the services provided at their retail stores. In addition, SBX will establish another support centre to respond to queries related to banking services provided by the bank. This support centre will be part of SBX’s Complaint Resolution Unit (CRU). The escalation process is demonstrated below: 5.1 Level 1 Resolution Customer can report an issue in two ways: 1. Visit the BCA: The BCA will receive the complaint in person. The BCA is provided access to TP systems and workflow front end to report the issue. The TP system is used to resolve basic queries and service requests that can be handled by the BC itself. These requests could be balance inquiry, static data changes, statement requests, account maintenance, etc. The BCA logs in queries, requests and complaints into the workflow system provided to him. 2. Report through Email or Helpline: Adxxxne Fxx Ixx Axx October 20xx Page 88 Process Note for BC-based Banking v 4.7 a. The IVR tree at the RPSL helpline will direct the customer to the relevant section, where the complaint/query will be recorded into the workflow. For e.g. basic banking related, e-wallet related or Level 2 banking related (non-resolvable by BC or RPSL Support Centre) b. RPSL will update the workflow as per the complaint/query received. They will either ask the customer to go back to BCA, resolve the query if it’s in their domain (e-wallet, account recharge, prepaid recharge, etc.) or forward it to SBX workflow for all queries which are to be resolved by the bank which RPSL cannot resolve. c. Option to write to RPSL is also available. Customer will also have the option to write in to the RPSL’s nodal officer. 5.2 Level 2 Resolution Queries which cannot be handled by BC are routed to Level 2 of the service escalation matrix. Such queries will reflect in bank’s workflow queue, and routed to SBX’s Complaints Resolution Unit (CRU) for resolution. SBX’s CRU can only be reached by the BCA or RPSL teams via the workflow system. The CRU directs these queries to internal SBX units, as applicable, for investigation and resolution the outcome of which will reflect in the workflow so as to be able to inform the customer appropriately. The internal teams include amongst others, Oracle Technology, Product, and Operations Teams. The Champions in these teams will have access to the workflow, and their updates into the workflow will be visible across all stakeholders of the request. A TAT will be assigned to issues depending on their type. 5.3 Level 3 Resolution If the customer is unhappy with the resolution provided by RPSL based on inputs received from Level 2 resolution, he can escalate the issue to Level 3. In this case, appropriately responsible individuals from RPSL will review the history of the issue resolution and respond to customer. If the customer is still unsatisfied, he escalates the issue to CRU teams. This can be accomplished through various means: • • 6.0 Call back request to be taken by RPSL on workflow, and SBX team will back within predefined time Customer to be given the option to write an email to a designated CRU email id, which will reflect in workflow (manual upload into workflow to be done by CRU team) MIS and Governance Key objective of MIS is to enable individuals performing specific roles have access to information so they perform their assigned responsibilities effectively. Governance is implemented in order to ensure the processes are executed as designed. Adxxxne Fxx Ixx Axx October 20xx Page 89 Process Note for BC-based Banking v 4.7 The MIS and Governance-related reports are designed to meet these requirements. 6.1 Roles Description The following roles are envisaged in the Business Correspondent model for RPSL. It is pertinent to note that, the roles are distinct and unique to ensure demarcation of responsibilities. In the initial period, it is quite likely that a single person can perform multiple roles, as long as there is no conflict of interest amongst the assigned roles. Provided below is a description of each role: BC Agent BC Agent (BCA) is responsible for servicing customers for banking and mobile related requests. BCA will be provided a tablet computer with a 4G internet connection. The front end application will be connected to BC System so that requests created by BCA are submitted in real time. BC Manager In the context of Business Correspondent model, the BC Manager is responsible for managing one or more BCAs. The manager, however, cannot perform the tasks a BCA is enabled to perform since he may not have signed a legal BC agreement with RPSL. His access would therefore be limited to viewing summary of transactions, but not the transactions itself. BC Officer BC Officer is responsible for approvals of account opening requests submitted by BCAs. The officer will have access to review screen of Account Opening Forms. He will not have access to any other screens related to banking transactions. He will be measured on the accuracy and time taken to close requests for approval submitted to him by BCAs. BC Head of Operations BC Head of Business is responsible for all activities of the BCAs, BC Managers, BC Officers, and BC Support Staff. In effect, he is responsible for all operations being executed by RPSL as a Business Correspondent. SBX Officer SBX Officer will be the final approving authority for opening accounts. He will receive the account opening requests submitted by BCA and validated by BC Officers. He will then approve or reject the request. His performance will be measured on the accuracy and time taken to approve request assigned to him. BC Support Executive The role of BC Support Executive is responsible for receiving and resolving customer issues reported by BCAs. BC Support Manager Adxxxne Fxx Ixx Axx October 20xx Page 90 Process Note for BC-based Banking v 4.7 BC Support Manager manages and a group of BC Support Executives, and serves as an escalation for issue resolution. He is also the one who escalates an issue to SBX Support Team. It should be noted that the BC Support Team will need to have access to banking transaction information of the customers to be effectively able to address the queries. An appropriate legal understanding/agreement will need to be established between RPSL and SBX which allows SBX’s back office teams to access customer information through CBS. Specific information that should be shared can be determined later. SBX Support Executive SBX Support Executive is responsible for receiving escalations from BC Support Team. The Executive is expected to have superior understanding of banking, and specifically the Business Correspondent model SBX is establishing (as compared to that of BC Executive). Appropriate training needs to be imparted to these individuals. SBX Support Manager SBX Support Manager manages a team of SBX Executives, and also serves as an escalation for resolution of issues. In fact, there could be more than one person who can be considered “SBX Support Manager” since certain issues may require resolution at senior levels. 6.2 Role-wise MIS Structure The following table provides a list of reports that each of these roles may require for efficient performance of their responsibilities. 6.2.1 BC Agent MIS Report Purpose Today’s Business Activity Provide a summary of tasks that the BCA has performed since the beginning of day (BOD). • • • • • • • # Accounts Applied-for # Credit Transactions # Debit Transactions # Funds Transfer # Non-financial Transactions # Issues Reported Commissions earned today and this month?? Transaction History List all transactions which the BCA has performed for a customer, or a given day. These will be the selection criteria for the report. • • • • List of Credit Transactions List of Debit Transactions List of Non-financial Transactions List Funds Transfer Requests Adxxxne Fxx Ixx Axx Key Fields of Information October 20xx Page 91 Process Note for BC-based Banking v 4.7 Cash-in-hand This is the CIH that the BCA holds with him or in retail store’s cash box on behalf of the bank. Report Parameters are Date Range or Today’s Date. • • • • • • Opening Cash Cash-in Transactions Cash-out Transactions Closing Cash Type of Transaction Narration of Transaction • • Request Type SLA Time (in Days, Hours and Minutes) • • • • From and To Dates Service Provided Date of Service Commission Amount Transaction Type Total Commission Cash-in and Cash-out Transactions can be listed separately or collectively in the sequence they took place. In such a case, the CIH at the end of every transaction could be shown. SLA for Requests Closure of BCA creates several requests on behalf of customers. Some of these requests are instantaneously resolved, and the others need further approvals. The report shows time taken for closure of such requests. Report Parameter: Range, Request Type Compensation Register BCA Payments Register 6.2.2 Date Shows the commission earned by the BCA for a given date range, and the breakdown of this commission. The services could include both banking and non-banking services provided by the BCA. • per This shows the income earned by the BCA and payments made to him. Retail Store Manager Adxxxne Fxx Ixx Axx October 20xx Page 92 Process Note for BC-based Banking v 4.7 MIS Report Purpose Cash Register Shows Cash-in and Cash-out over a defined date range by BCA. • • • • • • • • • • From and To Dates BCA Opening CIH Cash-in Transactions Cash-out Transactions Closing Balance Total Opening Balance (all BCAs) Total Cash-in (all BCAs) Total Cash-out (all BCAs) Total Closing Balance (all BCAs) BCA Activity Register The Retail Store Manager is responsible for activities of all BCAs under his management. He needs to be provided visibility into the activities performed by the BCAs. • • From and To Dates # Requests Performed by BCAs and Request Type Commission Earned by BCAs CIH by BCAs BCAs with 0 Transactions in last 1 week 6.2.3 Key Fields of Information • • • BC Officer MIS Report Purpose Key Fields of Information Outstanding Requests for The BC Officer can view is Account Approval outstanding requests. • • • Request Type (Aadhaar/NonAadhaar) Count of Requests Source Retail Stores This shows the overall activities performed by the BC Officer in a given date range. • • • • • • From and To Dates Count of Requests Received Request Approved Requests Rejected Requests on Hold Requests Pending Requests Pending Primary The report shows request IDs Mobile Number which are waiting creation of Assignment mobile number by . Unless the primary number is assigned, a request cannot • Request IDs Activity Register Adxxxne Fxx Ixx Axx October 20xx Page 93 Process Note for BC-based Banking v 4.7 be processed. This is the average time taken by the Officer to process a request. It can be presented as a chart of SLA time by date. • • Date SLA (Minutes or Seconds) Requests Number of requests processed for a given day, week, month, etc. • • Time Window (From and To Dates) Requests Processed • • • Total # of Account Requests Total # of Rejected Requests % Rejection Reasons SLA for Request Closure Volume of Processed Reasons for Rejection 6.2.4 Track the reasons for rejection of account opening requests in order to help reduce them in future through superior training and information sharing of BCAs. BC Support Executive MIS Report Purpose Request Closure SLA Average time taken to close a request in a given date range or ranges • • Time Window Average SLA Requests This report shows the types of requests being sent to a Support Executive by BCs. This report can help address process issues. • • • • • Number of Requests Type of Requests Number of Requests by Type % of Requests by Type % Requests Resolved Types of Managed 6.2.5 Key Fields of Information BC Support Manager MIS Report Purpose Request Closure SLA Average time taken to close a request in a given date range or ranges (total and by BC Support Executive) Adxxxne Fxx Ixx Axx Key Fields of Information October 20xx • • • • Time Window Average SLA BC Support Executive Average SLA Page 94 Process Note for BC-based Banking v 4.7 Types of Managed Requests This report shows the types of requests being sent to a Support Executive by BCs. This report can help address process issues (total and by BC Support Executive) • • • • • • • Number of Requests Type of Requests Number of Requests by Type % of Requests by Type % Requests Resolved BC Support Executive Average SLA If an executive addresses less than a certain number of requests, this underperformance should be flagged. • • BC Support Executive Average SLA Underperforming Executives 6.2.6 BC Head of Operations MIS Report Purpose Volume of Business Report Shows overall volumes of activities/transactions • • • • • • • • • • • • • From and To Dates # Accounts Opened # Financial Transactions (detail) # Non-financial Transactions # Issues Reported # Issues Resolved # Issues Open Cash-in-hand Revenue Generated Commission to BC Agents Fixed Costs Operating Profit TAT for issues resolved/open Top 10 Retail Stores Shows Top 10 Retail Stores by Revenue Generated. • • • • • • • • Retail Store Revenue # Accounts Opened # Financial Transactions (detail) # Non-financial Transactions # Issues Open Commission to BC Agents Number of BCAs Adxxxne Fxx Ixx Axx Key Fields of Information October 20xx Page 95 Process Note for BC-based Banking v 4.7 • Months of Operation Shows Bottom 100 Retail Stores by Revenue Generated. This report to be generated only for those retail stores which have had BC operations at least for 6 months. • • • • • • • • • Retail Store Revenue # Accounts Opened # Financial Transactions (detail) # Non-financial Transactions # Issues Open Commission to BC Agents Number of BCAs Months of Operation Age Buckets for Open This shows the Issues and Requests responsiveness of operations teams to requests and issues reported by customers. • • • Age Buckets # Issues # Requests % Dormant Customers Dormancy as defined by RBI • • • • Retail Store Total Account Holders Dormant Customers Dormant Customers as % of Accounts % Active Customers Track active customers as % of total account holders. Definition of “Active” is flexible, but we can start with “customer with at least 1 transaction in past quarter”. • • • • Retail Store Total Account Holders Active Customers Active Customers as Accounts This report will show the CIH by State, Region, District, Retail Store, and BCA. • • • • • State Region District Retail Store BCA Bottom 100 Retail Stores Cash-in-hand Report 6.2.7 % of SBX Officer MIS Report Purpose Key Fields of Information Outstanding Requests for The SBX Officer can view is Adxxxne Fxx Ixx Axx October 20xx • Request Type (Aadhaar/NonPage 96 Process Note for BC-based Banking v 4.7 Account Approval outstanding requests. • • Aadhaar) Count of Requests Source Retail Stores Activity Register This shows the overall activities performed by the SBX Officer in a given date range. • • • • • • From and To Dates Count of Requests Received Request Approved Requests Rejected Requests on Hold Requests Pending SLA for Request Closure This is the average time taken by the Officer to process a request. It can be presented as a chart of SLA time by date. • • Date SLA (Minutes or Seconds) Requests Number of requests processed for a given day, week, month, etc. • Time Window (From and To Dates) Requests Processed Volume of Processed 6.2.8 • BC Support Executive MIS Report Purpose Request Closure SLA Average time taken to close a request in a given date range or ranges • • Time Window Average SLA Requests This report shows the types of requests being sent to a Support Executive by BCs. This report can help address process issues. • • • • • Number of Requests Type of Requests Number of Requests by Type % of Requests by Type % Requests Resolved Types of Managed 6.2.9 Key Fields of Information SBX Support Executive MIS Report Purpose Request Closure SLA Average time taken to close a request in a given date range Adxxxne Fxx Ixx Axx Key Fields of Information October 20xx • • Time Window Average SLA Page 97 Process Note for BC-based Banking v 4.7 or ranges Types of Managed Requests This report shows the types of requests being sent to a Support Executive by BCs. This report can help address process issues. • • • • • Number of Requests Type of Requests Number of Requests by Type % of Requests by Type % Requests Resolved 6.2.10 SBX Support Manager MIS Report Purpose Request Closure SLA Average time taken to close a request in a given date range or ranges (total and by SBX Support Executive) • • • • Time Window Average SLA SBX Support Executive Average SLA Requests This report shows the types of requests being sent to a Support Executive by BC Support Team. This report can help address process issues (total and by SBX Support Executive) • • • • • • • Number of Requests Type of Requests Number of Requests by Type % of Requests by Type % Requests Resolved SBX Support Executive Average SLA If an executive addresses less than a certain number of requests, this underperformance should be flagged. • • SBX Support Executive Average SLA Types of Managed Underperforming Executives Key Fields of Information 6.2.11 SBX Head of Operations MIS Report Purpose Volume of Business Report Shows overall volumes of activities/transactions Adxxxne Fxx Ixx Axx Key Fields of Information October 20xx • • • • • • From and To Dates # Accounts Opened # Financial Transactions (detail) # Non-financial Transactions # Issues Reported # Issues Resolved Page 98 Process Note for BC-based Banking v 4.7 • • • • • # Issues Open Revenue Generated Commission to BC Agents Fixed Costs Operating Profit Top 10 Retail Stores Shows Top 10 Retail Stores by Revenue Generated. • • • • • • • • • Retail Store Revenue # Accounts Opened # Financial Transactions (detail) # Non-financial Transactions # Issues Open Commission to BC Agents Number of BCAs Months of Operation Bottom 100 Retail Stores Shows Bottom 100 Retail Stores by Revenue Generated. This report to be generated only for those retail stores which have had BC operations at least for 6 months. • • • • • • • • • Retail Store Revenue # Accounts Opened # Financial Transactions (detail) # Non-financial Transactions # Issues Open Commission to BC Agents Number of BCAs Months of Operation Age Buckets for Open This shows the Issues and Requests responsiveness of operations teams to requests and issues reported by customers. • • • Age Buckets # Issues # Requests % Active Customers Track active customers as % of total account holders. Definition of “Active” is flexible, but we can start with “customer with at least 1 transaction in past quarter” • • • • Retail Store Total Account Holders Active Customers Active Customers as Accounts This report will show the CIH by State, Region, District, Retail Store, and BCA. • • • • State Region District Retail Store Cash-in-hand Report Adxxxne Fxx Ixx Axx October 20xx % of Page 99 Process Note for BC-based Banking v 4.7 • 6.3 BCA Governance Governance includes the following major considerations: 1. 2. 3. 4. BCA Management Transaction Controls Training Design, Delivery and Assessment for BC Agents and BC Managers Refresher Training Design, Delivery and Assessment for BC Agents and BC Managers Adxxxne Fxx Ixx Axx October 20xx Page 100 Process Note for BC-based Banking v 4.7 Appendix – A: KYC compliance requirements The BC-RPSL is required to follow the RBI mandated KYC compliance verification for on-boarding a new customer. KYC requirements are described by RBI and updated from time to time. The details provided below are as of Sep 2014 and provided for reference. It is advised to refer to RBI website (www.rbi.org.in) for latest changes or updates on KYC compliance requirements. e-KYC (Aadhaar card based KYC) e-KYC will be the preferred approach as it is easy, convenient and faster. e-KYC is currently possible only with Aadhaar card issued by UIDAI. If Aadhaar UID is available with the customer, then the same will be used for opening of bank account. The details returned by UIDAI should NOT be altered to be eligible for e-KYC. In case any of the customer details need to be modified, then the normal KYC process will be applicable. KYC This normal KYC process is applicable, where the customer: 1) Does not have an Aadhaar card from UIDAI 2) Possesses an Aadhaar card issued by UIDAI, however some particulars provided in Aadhaar card have changed (like current address is different from Aadhaar card etc.) The customer will be required to provide necessary documents for KYC in this case. Relaxed KYC BC-RPSL may allow customers without any valid documents to open ‘small accounts’ as defined by RBI in its press release dated 26th Aug 2014. ( http://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=31935). Adxxxne Fxx Ixx Axx October 20xx Page 101 Process Note for BC-based Banking v 4.7 Appendix - B: Guidelines for establishing Cash limits for BC Agents Cash Management is an important function for an efficient BC model. Establishing cash limits for the agents as well as the BC stores is a function of risk of carrying cash, efficiency in BCAs activities, volume and velocity of transactions (deposits/ withdrawals) on a daily basis. The demand for cash also fluctuates due to seasonal/ festive occasions, which influences the cash limits for BCA. The cash limits for the agents need to consider a set of dynamic variables mentioned above. Appropriate security and insurance coverage also needs to be considered as they incur additional cost and influence the profitability of the model. Following are the broad guidelines for the bank/ BC to consider in establishing the cash limits. It is recommended that the limits to be continuously monitored and reviewed for every BCA/. It should be fine tuned periodically to adjust it to practical levels. • • • • • Number of customers associated with the BCA in the area of his operation Average number of active customers on daily basis who transact with BCA Ratio of Deposit transactions v/s withdrawals Average size of transaction per customer (for deposits and withdrawals) 5% contingency or additional margin over the established limit – This will help to cater to any minor fluctuations on any given day The cash limits need to be temporarily revised prior to festive occasions/ seasonal demands of the region (e.g. Diwali, Eid festivals, start of school vacations, start of fresh academic year in schools, sowing season in rural areas etc. will normally see an increased number of withdrawals by customers). It is also recommended that any large withdrawals / deposits by customers are notified in advance, so that the BCA can plan for it accordingly. This needs to be operationally controlled. ~ EOD ~ Adxxxne Fxx Ixx Axx October 20xx Page 102