agriculture development
Post on 13-Dec-2014
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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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