Financial Inclusion in India speech given by Mahesh Ramachandran - Chair, Tie Chennai Fintech Specialist Group at Fintech Nxt Chennai May Meetup on 20 May 2017.

1. Disruptive Technologies for Financial Inclusion
FINTech NxT
MAHESH RAMACHANDRAN
COMMONWEALTH INCLUSIVE GROWTH SERVICES LTD

2. Why watch disruptive technology for FI?
“First, disruptive products are simpler and cheaper; they generally
promise lower margins, not greater profits.
Second, disruptive technologies typically are first commercialized in
emerging or insignificant markets.
And third, leading firms’ most profitable customers generally don’t want,
and indeed initially can’t use, products based on disruptive technologies.”
― Clayton M. Christensen
The Innovator's Dilemma:
When New Technologies Cause Great Firms to Fail

4. Technology continues to drive Financial Inclusion
Pradhan Mantri Jan Dhan
Yojana (PMJDY)
Leveraging Unique ID -
UIDAI (Aadhaar) for KYC
Mobile phone
JAM (short for Jan Dhan-Aadhaar-Mobile) trinity refers to the government of India initiative to
link Jan Dhan accounts, Mobile numbers and Aadhar cards of Indians to plug the leakages of
government subsidies.

6. Aadhaar Authentication
v Establishing Identity
v Improving Transparency
v Address and Demographic
Verification
v 1:N match
v Return personal identity
v Authenticate against local data
v Will not
do

7. e KYC
v Allows authentication to be a pure
play service and keep it
independent with a pure yes/no
response
v KYC service is built like an
application, layered on top of core
auth service
v Residents have clear understanding
of who did KYC
v Residents have an “opt-in/opt-out”
scheme
v KSA – KYC Service Agency
v ASA - Authentication Service Agency
v KUA – KYC User Agency
v AUA – Authentication User Agency (e.g. Bank)

8. Aadhaar Enabled Payment System
vAEPS – Aadhaar Enabled Payments System
=> Online Authentication
vAPB – Aadhaar Payments Bridge =>
Benefits transfer -> AEBA
v Balance Enquiry
v Cash Withdrawal
v Cash Deposit
v Fund Transfer
v Bank ID (IIN)
v Aadhaar Number
v Fingerprint
Inputs Required
Services Offered

9. Payments Platform
vIMPS – 24x7 - Immediate Payment Service
vAround 35% of all payments
vExceeds Debit and Credit card transactions
vTwo factor single click authentication
v Card + PIN changes to Mobile + Biometrics
vIssuer (Customer) and Acquirer (Merchant) will be using similar instrument
which will be a mobile phone
vFrom High Value, Low Volume, High Cost
vTo Low Value, High Volume and Low Cost

15. Other initiatives in Financial Inclusion
vUse of National Unified USSD platform for Mobile Banking *99# (NUUP)
vInstant issuance of RuPay® Debit Card – India’s own National Payment
Gateway

16. Other initiatives in Financial Inclusion
vBHIM – UPI based App for sending and receiving cashless payments
vBharat QR Code – Interoperable / Common QR code for Visa / MasterCard and Rupay
vAadhaar Pay

17. Contact Details
Mahesh Ramachandran
Managing Director
Commonwealth Inclusive Growth Services Ltd
No. 27, Dr. Ambedkar Road, Kodambakkam, Chennai India - 600 024.
https://goo.gl/maps/TUU24jKvpCk
T: +91 (0) 44 3098 9999 M: +91 (0) 9940660409
E: mahesh@cigs.in W: http://www.cigs.in
LinkedIn: http://www.linkedin.com/in/trmahesh
Twitter: @DigitalKendra Facebook: /DigitalKendra
YouTube: Please visitDigital Kendra to know more about who we are and what we do.