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Setting up and connecting with agent networks


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Setting up and connecting with agent networks

  1. 1. Agent Network and Cash Management Partnerships against Poverty Summit, Manila October 9-11, 2013 Raj Singh-Khaira VP-Fino Paytech Limited
  2. 2. Agent Network Zone Head State Head Cluster Head District Coordinator (handles ~12 BCs) Block Coordinator (handles ~12 Agents) Agent(services ~750 customers) 2
  3. 3. Snapshot of our largest geography for cash disbursement Disbursement (Rs. Mio) 4,173 3,987 • Total Disbursement in our largest geography for FY 1213 was ~Rs. 18,192 Mio with • Peak months touching ~Rs. 4,173 Mio. 2,148 1,161 1,456 1,263 832 193 1,355 720 569 • Agents cash in hand in range of Rs. 0.2 Mio to 1 Mio 336 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 3
  4. 4. Cash management philosophy • Centralized fund flow is monitored i.e. all fund flow starts from HO (Mumbai) and is controlled & monitored from here: – Cash exposure for Agent/BC (Block Co-ordinator) /DC (District Co-ordinator) is controlled by having set cash limits for each at any given time. – Agent Cash in Hand (CIH) is monitored via MIS from the field and is validated against auto generated reports (CMS dashboard). – Periodic reconciliation is conducted with frequencies varying from 1 week to a month. – Regular Cash/Transaction holidays ensure system hygiene as Cash reported by the field during the cash holiday equals Cash in Bank. • All of the above are further re-enforced by Cash in Transit and Fidelity Insurance 4
  5. 5. CMS framework • Net cash with Agent • Net cash = Total Deposits – Total Withdrawals     If the deposits are more than withdrawals, this means FINO’s money is with Agent. Since Agent is holding FINO cash with him, his outstanding amount will be displayed as negative balance. If the withdrawals are more than deposits, this means Agent is paying out to the customers. FINO is liable for the withdrawals given by the Agent, his outstanding amount will be displayed as positive balance. 5
  6. 6. CMS framework Accounting Entries Debit Credit Customer Credit/ cash deposit Agent to BC Transfer Agent / Member A/c BC BC Cash deposit to Bank Bank A/c Customer Liability A/c Agent Agent / Member A/c FI (Financial Inclusion) EBT (Electronic Benefit Transfer) E-Pay Fund received E-Pay uploaded in FTS Daily Fund Transfer for Disbursment Daily disbursement Cash Deposit the bank account by agent Bank A/c Incoming Control A/C Agent / Member A/c Customer Liability A/c Bank A/c Incoming Control A/C Customer Liability A/c Bank A/c Agent / Member A/c Agent / Member A/c 6
  7. 7. Payment Cycle For projects, government provides beneficiary list E-Pay Order is received by Central Operations Team Finance Operations confirms the physical receipt of Funds to FFF (FINO Fintech Foundation) account CMS team verifies the cash in hand with the BC/DC/Agent to whom the funds are to be remitted Basis the existing cash in hand & the limits of the BC/DC/Agent, calculates the fund transfer amount Funds transferred to DC/ BC Funds received by Agent Daily Funds movement between the DC/BC/Agent is monitored basis the Cash movement tracker E-Pay Order is uploaded by Transaction Team basis URN of customer and mapped Agent’s TID BOD downloads the credit balance to update the customer account balance Field POT Device EOD BOD EDPS / TDPS EOD uploads the transactions done on field through POT Devices to reflect in customer account Actual Agent disbursment is monitored through the CMS dashboard reflecting the CIH with the Agent. In case of exceptions if the Agent pays the beneficiary without performing txn, the same is marked in the acquaintance sheet & later txn is processed Cash Remitted/E-pay Order = Disbursement + CBM + MM + CIH + CIB 7
  8. 8. Monitoring Cash handovers Cash Movement Report is to monitor the cash exchange in the field. This helps DC to track daily cash movement between DC, BC & Agent. The DC can also monitor the frequency at which the BC is meeting his Agent. Positive balance under the BC heading indicates that the BC has handed over cash to the Agent. 4th May 2011 BC GAJANAN KABIR Handover cash amounting to Rs. 290974 to Agent(TID 10461301) In above report Agent Collected cash form BC for disbursement , so his balance reflects as –ve Cash. Negative balance under the BC heading indicates that the BC has handed over cash to the Agent. 4th May 2011 BC GAJANAN KABIR reconciled the manual payments details amounting to Rs. 290974 to Agent(TID 10461301) In above report Agent provided details of manual disbursement, so his balance reflects as +ve Cash. 8
  9. 9. Monitoring daily CIH CMS Dashboard enables the HO to monitor daily Cash in Hand of the Agent /BC & DC. This data is used by Central Team & field Team to check & monitor the daily cash position. POT Settlement details are also availed in this report . This is basically net float report. Cash In hand with Agent in below report  -3133 9
  10. 10. Transaction Holiday • Transaction Holidays – Conducted once a month in all transacting Districts: • At an agreed time and date all pots are locked from doing any transactions. • Field deposits all Agent/BC/DC cash into the FFF pool account – verified by Operational Finance Team. • Backend Recon team generates a report tally up the FTS & customer card balances. • Pots are unlocked to commence transactions. 10
  11. 11. Thank you