Surendra Shetty President & Deputy Chief Information Officer, YES BANK YES Sahaj Ultra low - cost mobile banking kit

The Unbanked Indians Financial Exclusion in India - The Biggest Failure of ‘India Shining’ 64% Indians lack access to saving account, 87% Indians lack access to ATMs 73% farming household lack access to institutional credit Lack of commercially viable & scalable business model to cater to the financially excluded Conventional banking approach faces challenges such as huge infrastructure set-up cost, high operating cost and lack of risk mitigation measures Mere ‘stripping down’ of conventional products also doesn’t work as banking needs of target segment are distinctively different Lack of appropriate & enabling technology solutions to reach out to ‘The Next Billion’ customers Meeting cost and outreach requirements is challenging Lack of innovation in leveraging technology In its endeavors of Frugal Innovations for Financial Inclusion (FI 4 FI), YES Bank has developed a Mobile Banking Platform – YES Sahaj, in collaboration with DruvTech Systems

YES Sahaj The Kit Low end mobile handset Bluetooth thermal printer synchronized with the mobile handset Technology GPRS enabled mobile based online application Real time data transfer to the intermediate Server Advanced security features like IMEI number based pairing of all peripheral devices, SIM card validation, login password, default GPRS security check, HTTPS protocol enabled database Usage Doorstep collection of Savings and Loan repayment In field cash withdrawal using the Magnetic Strip reading slot on the printer Accounting module for Self Help Group (SHG) & record management Platform for Remittance origination Instantaneous printed receipt with SMS alert

Contd… Uniqueness of the solution Cost Efficient Real-time tracking of transaction Complete Banking Solution Risk Mitigation : highly secured platform Multiple acknowledgement facility: Instantaneous OTP generation facility, printed receipt and SMS alert System scores over other Hand Held Devices in all aspects – functional, operational and cost effectiveness Transaction recorded As of February 29, 2012, YES Bank has recorded 1,06,575 transactions with an aggregate value of Rs crores through YES Sahaj

Schematic Presentation

Transaction Flow 1. Login Service Officer logs in the device Downloads the data for the day through GPRS 2. Transaction Carry out customer transaction Provide transaction receipt 3. Reconciliation Generate End of Day report Reconciliation with backend report

Visits Customer in the field Transaction request entry Transaction receipt and confirmation SMS Telecom (GPRS) Back end Server Transaction request Confirmation SMS Data Validation Service Officer Customer 1. Login

Logs on the mobile device Download customers’ data for the day Telecom (GPRS) Back end Server Transaction Kit Service Officer Data sharing with back end Server Data Sent to Mobile device 2. Transaction

Generate End of day report through Mobile-Printer Device Reconciliation with YBL database EOD report generation Reconciliation 3. Reconciliation

Special Recognitions Frugal Innovations for Financial Inclusion (FI 4 FI) Certificate of Appreciation Top 50 Financial Inclusion Projects in India (2011) Frugal Innovations for Financial Inclusion: Yes Sahaj Mobile Banking Platform