We wish to introduce you our company popularly known as PARNAM KISAN SERVICES PRIVATE LTD.,an agripreneurial venture, having its head quarters at New Delhi and satellite offices in several other cities of India, UK, US, SpainRussia, Uzbekistan, Denmark.

PARNAM KISAN’s mandate is to provide effective services and solutions in financial transactions, value-adding services especiallyfocusing on the food and agri business which would go a long wayto bring about sustained reforms and changes in the farm sector..

With our unique advantage of grassroot understanding of the agricultural sector of our country, and with the experienced expertiseof our panel of advisors we wish to act as a reliable pillar for both, the farmer as well as the financial institutions and provide holistic services to the agricultural sector.

Financial System

Banks / FI’s

RBI

MILKFED

Unions

Societies

MILK FARMERS

Milk

Sup

ply

CC / WC limits

Cash (Collection & Disbursement)

Physical Register

No Database

Only cash

Cas

h

10 -100$

100$+Top marketdebit/credit online

mass markets require low cost solutions

<20%

10$ -

<40%

Mass marketno cardsOn/off-line

40%

Micro-marketoff-line

Segment VolumeAmount

40.000 POS

360.000 POS

1,6 million POS

Acceptance

A model market of 80 million citizens

XYX-Co is should be secure multi-purpose IT platform for the direct provision of consumer based services.

Services could cover different spheres of consumer life:

financial (credit, debit, savings, payment ect.)

insurance (medical, life, crop, business)

social (pensions, subsidies, e-vouchers)

administrative (personal ID, e-signature, voting)

Provision should be done by the service provider or through agents and intermediary networks.

Using guaranteed value on the card, XYZ-Co should provides low cost card to card services via a terminal or internet.

Requirements:

• Change in payments process• Training and familiarization of staff

to use the terminal and maintain the same.

• Educating the individual about the new payment process.

• Transaction security and if PIN is issued maintenance and authority to use the PIN

Proposed Solution:

SocietySociety

MilkMilkSupplySupply

ParnamParnamKisanKisan’’ss Smart Smart Chips SolutionChips Solution

Offline/Online Offline/Online terminal terminal

Data upload to Data upload to ParnamParnamKisanKisan’’ssserverserver

Payment file processed Payment file processed by Bankby Bank

Direct credit into Direct credit into MilkmanMilkman’’s bank s bank accountaccount

MilkmanMilkman

Milk Milk procurementprocurement

RBIRBIReserve Bankof India

Reserve BankReserve Bankof Indiaof India

Any BankAny BankAny Bank

HDCCF Bodies / centers of

Parnam Kisan Centers

HDCCF MILKFED Bodies / centers of Bodies / centers of

ParnamParnam KisanKisan CentersCenters

Benefits• Will eliminate cash handling over a period of

time• High flexibility and ease of use• Security benefits by not handling Cash• Lower costs and higher productivity by reducing

cash handling• Easy access to funds to the farmers

Concept

500100

400

deposit fundsdeposit fundsobtain fundsobtain funds

settlementsettlement

purchasepurchase

IssuerIssuer AcquirerAcquirer

client cardclient card merchant merchant cardcard

merchant account

transferred funds

client account

preauthorized fundspreauthorized funds

Microfinance Challenges:INFRASTRUCTURE >>> bank access for poor clients in rural & suburban areas is difficult as a result of missing branches

HIGHER COST >>> the cost in relation to value of micro-loans & deposits is very high

WORKING HOURS >>> poor usually work longer hours, have no time for the branch visits during the day

HIGHER RISK >>> poor people don’t have fixed assets, their collaterals are the results of future work

EDUCATION >>> unbanked clients are banking illiterates and require education before purchase services

TECHNOLOGY>>> inefficient non standardized manual provision of services

Solution:Direct secure customer access everywhere via intermediaries (agents) infrastructure

Lowest cost of operation through off-line card to card services (no variable cost)

Local merchants as sales agents with services available at extended hours

Possibility to control dedicated fund usage

Sharing IT infrastructure and automation of services/processes enabling scalability

Efficiency of infrastructure through services extendibility (credit/savings/insurance, etc.)

Micro-Payment

Merchant acc.

payment

payment

Client account

obtain loan

Micro-loan

issuer recipientagent

Micro-loan

purchase

purchase

Micro-Loan

Micro-loan

Client account

obtain loan

Micro-loan

issuer recipientagent

Micro-loan Micro-loan

repayment

Micro-loan Micro-loan

Micro-Savings

Client account

savings

contracting

contract

issuer depositoragent

contract contract

depositing

deposit savings

Insurance

premium

contracting

contract

insurer recipientagent

contract contract

payment

premium premium

Conclusion

World is still cash dominated market

Real cash substitution could be only driven by off-line card technology

Domestic payment card should:

be a medium which can be accepted everywhere similar to a legal tender

provide cost of transaction always cheaper than other means of payment

own visible value on the card

allow value transfer to other persons

be protected against any fraud and counterfeiting

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