Mobile Payment Forum of India (MPFI) Dr.V.N.Sastry, Executive Secretary, MPFI & A ssociate Professor, IDRBT Institute for Development and Research in Banking Technology, Road. No.1, Castle Hills, Masab Tank, Hyderabad – / Dt. February 27, 2009 Developments of Activities

February 27, 2009MPFI Meeting at The Imperial Hotel, New Delhi 2 Contents  Major Events  Membership  Issues  Financial Status  Proposed Activities

February 27, 2009MPFI Meeting at The Imperial Hotel, New Delhi 3 Major Events  MPFI was formally launched.  Held on September 15, 2007 at IDRBT, Hyderabad.  About 50 participants attended the meeting.  Various Committees constituted. First Meeting of MPFI:  Executive Committee  Regulatory Committee  Technology Committee  Business Committee

February 27, 2009MPFI Meeting at The Imperial Hotel, New Delhi 4 Major Events contd..  It was held on February 16, 2008 at IIT Madras, Chennai  Various issues relating to Technology, Business and Regulatory aspects of mobile payments were discussed.  About 60 participants attended the meeting.  Four Groups were formed. Second Meeting of MPFI:  Gr.-I : Messaging Standardization of Mobile Payments  Gr.-II : SMS, GPRS and GSM Service Aspects  Gr.-III: End to End Quality of Service aspects and specifications  Gr.-IV: Consolidated account versus individual account, risks and security from regulatory perceptive

February 27, 2009MPFI Meeting at The Imperial Hotel, New Delhi 5 Major Events contd..  It was held on June 07, 2008 at Vodafone Essar Limited, Mumbai  Various issues were discussed on the Reports submitted by the Groups  Report submitted by the Regulatory Group “Mobile Payments in India – Operative Guidelines for Banks”.  Society Bylaws approved and signed by the EC Members.  76 members attended the meeting.  Two new Committees formed. Third Meeting of MPFI:  SIM Card Committee  Financial Inclusion Committee

February 27, 2009MPFI Meeting at The Imperial Hotel, New Delhi 6 Major Events contd.. Fourth Meeting of MPFI:  It was held on August 22, 2008 at Royal Orchid Resort, Bangalore  Discussions on “ Mobile Banking Transactions in India – Operative Guidelines for Banks ” released by RBI  The overview of FI Committee’s work was presented by Mr. Rajesh Dongre, Vodafone  The overview of SIM Cards Committee’s work was presented by Mr. Pallab Mitra, Bharti Airtel  The overview of issues and recommendations on Inter-working Standards was presented by Mr.Aditya Menon, Obopay  Discussion on Cash Wallets & Regulations.  Milestones were defined for one year.

February 27, 2009MPFI Meeting at The Imperial Hotel, New Delhi 7 Major Events contd.. Fifth Meeting of MPFI:  It was held on November 18, 2008 at Hotel Hyatt Regency, Mumbai.  Open session with Shri. G. Padmanabhan, Chief General Manager, DPSS, RBI  Discussion on Inter-operability standards in Mobile Payments by Shri. G.P.Shekar  Discussions on Certification Process and setting up of Certification Lab at IIT Madras.  Discussions on use of Mobile Banking for Financial Inclusion  Discussion on pre-paid card guidelines

February 27, 2009MPFI Meeting at The Imperial Hotel, New Delhi 8 Major Events contd..  Open session with CEO / Top Management of Telecom Companies on Mobile Payments.  It was informed by the Executive Secretary that MPFI has entered into Joint Agreement with Clarion Events Limted, London and organized the event Mobile Money Transfer 08 (MMT08)’ held during November , 2008 at Dubai.

February 27, 2009MPFI Meeting at The Imperial Hotel, New Delhi 9 Major Events contd.. During the fifth meeting of MPFI, the first press conference of MPFI was held during the lunch break from 12:45 – 1:30 p.m. Journalists from various newspapers including PTI, UNI, CNBC, UTUI, DNA, Financial Chronicle, Freelancer etc. have covered the press conference proceedings. It was attended by Dr.Ashok Jhunjhunwala, Dr.R.B.Barman, Dr.V.N.Sastry and Mr.Sachin Khandelwal. Dr.Ashok Jhunjhunwala briefed about the various activities, developments, challenges and future road map of MPFI. Press Meet:

February 27, 2009MPFI Meeting at The Imperial Hotel, New Delhi 10 Major Events contd.. Elections to EC and the four Committees (TC, RC, BC and CEC). Dr.V.N.Sastry, Executive Secretary and Mr.Sachin Khandelwal, Joint Secretary conducted the Elections for the various Committees of MPFI (EC, TC, RC, BC & CEC) for the year 2009 and Dr. Ashok Jhunjhunwala, Chairman finalized the results through voting breaking the tie, wherever arisen.

February 27, 2009MPFI Meeting at The Imperial Hotel, New Delhi 11

February 27, 2009MPFI Meeting at The Imperial Hotel, New Delhi 12 Major Events contd.. Categories of Membership: It was informed to the members that as decided by the Executive Committee during its meeting dated October 17, 2008, the membership of MPFI would have 3 categories:  Associate Member  Institutional Member  Observer

February 27, 2009MPFI Meeting at The Imperial Hotel, New Delhi 13 Membership Founding Members of MPFI :  IDRBT  RTBI (IIT-Madras)

February 27, 2009MPFI Meeting at The Imperial Hotel, New Delhi 14 Membership contd.. Categories of Institutional Membership: The membership of the Society is available to  Banks  Telecom Operators  Software and Hardware Technology Providers related to mobile payments  Regulators, Government and Govt. Agencies  Academic and Research Institutions etc. involved in the development of mobile payments in India. Rules regarding the Membership :  Payment of the appropriate Society membership fees.  To be approved by the Executive Committee based upon the applicants role, background and potential for contribution towards the development of mobile payment services and products.  The membership is valid for 1 fiscal year and the amount of membership fee is decided by the EC, which is Rs.10000/- for

February 27, 2009MPFI Meeting at The Imperial Hotel, New Delhi 15 Associate Membership Associate Membership is open for Founding Institutions (RTBI and IDRBT), Govt. and Semi-Govt. Organizations (such as RBI, DIT, TRAI), Academic Institutions (such as IITs) and Non-profit institutions of public interest, Universities and R&D Centres. Eligibility: The work, product or solution of the Institution or Origination should be closely related to the mobile payments area. The institution should be registered in India

February 27, 2009MPFI Meeting at The Imperial Hotel, New Delhi 16 Associate Membership contd. Membership Fees: Members registered under Associate Membership category are exempted from the Membership Fees. Voting: One representative only of a registered Associate member organization can participate in voting and cast one vote.

February 27, 2009MPFI Meeting at The Imperial Hotel, New Delhi 17 Institutional Members It is open for Banks, Telecom operators, Technology Providers, Software and Hardware Technology Providers related to mobile payments Eligibility: 1.The Company or organization should be registered in India and the primary work/ product of the company or organization should be related to mobile payments. 2.Institutional Membership is in the name of a company or an organization and not by an individual’s name.

February 27, 2009MPFI Meeting at The Imperial Hotel, New Delhi 18 Institutional Members contd.. There would be 2 representatives from each Institutional Member organization: (a) One fixed (b) One nominated by the registered organization Voting: Each of the two individuals representing an Institutional Member organization can participate and cast vote, whenever voting is held.

February 27, 2009MPFI Meeting at The Imperial Hotel, New Delhi 19 Institutional Members contd.. Institutional Members should pay an annual membership fee as fixed by the Executive Committee. The Institutional Membership Fee has been enhanced from Rs.10,000/- to Rs.15,000/- for the year 2009 during the Fifth meeting of MPFI held on November 18, 2008 at Mumbai. Membership Fees:

February 27, 2009MPFI Meeting at The Imperial Hotel, New Delhi 20 Observers Institutions which are not covered in the above 2 categories but have interest in the development of MPFI, Invited member / Expert members, from any organization can be an Observer. However they do not have the voting rights.

February 27, 2009MPFI Meeting at The Imperial Hotel, New Delhi 21 Observers contd.. Invited Members / Expert Members: i.Only the EC has the privilege to invite members to the consortium ii.If any Committee needs the expert service of an Individual from Academic R&D Centers for a specific period of time, the Committee can request the EC to invite particular individual as an Expert Member. iii.Any Government of India representative whose work is related to mobile payments may be invited to participate in its activities as an Observer. iv.Individual Expert Members from Academic R&D Centers can be invited to participate in the MPFI activities as Observers

February 27, 2009MPFI Meeting at The Imperial Hotel, New Delhi 22 Observers contd.. Membership Fees: An organization can be considered as an Observer on approval by the Chairman / EC on payment of an annual membership fee. Invited Experts may be exempted from payment of membership fee. Voting: Observers do not have the voting rights.

February 27, 2009MPFI Meeting at The Imperial Hotel, New Delhi 23 Associate Members of MPFI

February 27, 2009MPFI Meeting at The Imperial Hotel, New Delhi 24 Institutional Members of MPFI Banks:

February 27, 2009MPFI Meeting at The Imperial Hotel, New Delhi 25 Institutional Members of MPFI Banks:

February 27, 2009MPFI Meeting at The Imperial Hotel, New Delhi 26 Institutional Members of MPFI Telcos:

February 27, 2009MPFI Meeting at The Imperial Hotel, New Delhi 27 Institutional Members of MPFI Technology Providers:

February 27, 2009MPFI Meeting at The Imperial Hotel, New Delhi 28 Institutional Members of MPFI Technology Providers

February 27, 2009MPFI Meeting at The Imperial Hotel, New Delhi 29 Institutional Members of MPFI Technology Providers

February 27, 2009MPFI Meeting at The Imperial Hotel, New Delhi 30 Institutional Members of MPFI Technology Providers

February 27, 2009MPFI Meeting at The Imperial Hotel, New Delhi 31 Institutional Members of MPFI Govt. Organization

February 27, 2009MPFI Meeting at The Imperial Hotel, New Delhi 32 Observers

February 27, 2009MPFI Meeting at The Imperial Hotel, New Delhi 33 New Registered Members of MPFI

February 27, 2009MPFI Meeting at The Imperial Hotel, New Delhi 34 Renewed Members of MPFI

February 27, 2009MPFI Meeting at The Imperial Hotel, New Delhi 35 Executive Committee Meetings  The First EC Meeting was held on December 19, 2007 through Teleconference.  The second Executive Committee Meeting was held on April 16, 2008 through Teleconference.  The third Executive Committee Meeting was held on October 17, 2008 through Teleconference.

February 27, 2009MPFI Meeting at The Imperial Hotel, New Delhi 36 Issues for Discussion  Office Setup for MPFI  Registration of MPFI as a Society  Financial year for the payment of MPFI Membership is January – December.  Permanent Maintenance of Accounts of MPFI by a Public Sector Bank as IDRBT is temporarily maintaining the Accounts.  Nomination/Selection of a Treasurer.

February 27, 2009MPFI Meeting at The Imperial Hotel, New Delhi 37 Issues for Discussion  It is now proposed that a new Account is opened after the Registration process of the Society is completed, which will be maintained by the Treasurer and 10% of the Fund collected in 2008 should be put under Corpus Fund.  As per the Bylaws, MPFI Society should have two Accounts.  Corpus Fund Account.  General Account

February 27, 2009MPFI Meeting at The Imperial Hotel, New Delhi 38 Financial Status of MPFI