THE ASIAN BANKER SUMMIT 2011 Suresh Sethi, Group President, Transaction Banking Yes Bank Ltd Low Value Payments in Asia Interoperability issues…. August 28, 2015

Full Access to Fin. Products Medium - Very High value txns. Fully diversified spend patterns Limited Access to Fin. Products Medium - High value txns. Moderately diversified spend patterns No Access to Fin. Products Low value txns. Restricted spend patterns EMERGING MARKETS DEVELOPED MARKETS BANKED UN-BANKED UNDER-BANKED BANKED UN-BANKED UNDER-BANKED Payments Landscape

Case for Interoperability Asian banks, in the aftermath of the global crisis, are well positioned to garner market share from global banks in their home turf Consequently they have to put their act together to stack up their capabilities and meet the standards of Multinational Corporates Value at the bottom of the Pyramid – under tapped potential for channelizing worker remittances from the Indian Diaspora August 28, 2015

What is required? Corporate (High Value) Payments Payments Hub (Shared Service Model) to handle all payments across all entities within a financial group Flexibility to meet customer’s unique requirements Ability to support new changes/mechanisms/channels without costing as much as ‘bespoke’ customizations An interface which allows the corporate treasurer to assess and mobilize funds as per requirement Seamless and quick movement of cash between geographies Corporate need for seamless domestic and international payment systems Limited capability of domestic banks to provide a STP and interoperable cross border payment system Open Looped Systems – Movement from Bank controlled standards to Client controlled standards – Development of XML based standards

What is required? Retail (Low Value) Payments A ctive use of Mobile and contactless cards to perpetuate payments to remote locations (worker remittances) Leveraging on National networks to spruce up internal systems to better serve the customers Correspondent relationships/Branch Network/ Banking Correspondent in key remittance corridors Robust AML and other integrity checks to ensure regulatory compliance

Technology – disruptive at that Micro ATM – that too talking…. IVR transactions – growing use cases from non PC homes Mobile commerce – bypassing PC payment learning phase UID linked txn capability – real inclusion with bio - auth Voice recognition based txn – authentication at it’s best August 28, 2015 NFC payments – will disruptive technologies hit it??

Payments Landscape in India

The only ‘Greenfield’ private sector bank to be set up in the last decade in India Knowledge Banking - Key Differentiator with ‘One-Bank’ customer proposition Ranked as India’s No 1 New Private Sector Bank in the Financial Express – E&Y Best Banks Survey 2010 Recognized as “India’s Fastest Growing Bank of the Year” at the Bloomberg UTV Financial Leadership Award 2011 About YES Bank 9M FY 2011 : Balance Sheet : $11.68 Bn PAT: $ Mn ROA: 1.5% ; ROE : 21.3 % Branches : 214 ATM’s : 236

Thank You