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EKO
Can EKO grow in a dynamic mobile payment eco-system?
This case was jointly written by Dr. Parijat Upadhyay and Anirban Sharma of Institute of Management Technology (IMT)
, Ghaziabad. It is intended to be used as the basis for class discussion rather than to illustrate either effective or ineffective
handling of a management situation. The case/background note/article was compiled from published sources.

© Dr.Parijat Upadhyay.

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Can EKO grow in a dynamic mobile payment eco-system? 1

The top management team at Eko India Financial Services Private Limited (Eko) is
browsing through some official datasheets as he prepares for his presentation on road ahead for his
company, Eko. The company which he and some of his friends founded in September 2007
provides mobile based payment services in India. After the initial tough years ,Eko was able to able
to create a niche position in mobile based money transfer and became banking correspondent(BC)
to State Bank of India (largest Public Sector bank in India) in Feb. 2009 and collaboration with
ICICI (largest private sector bank in India) followed soon. Funds flowed into the start-up from
several sources which included US private equity funds and from Bill Gates co-founded
organizations. In mid-2014, after several years of operation the management team at Eko faces a
challenge to achieve sustainable growth since new players had entered the mobile payment
segment. The management has requested Mr. Sinha to draw up a road-map for the technology
focused company to achieve sustainable growth.

Mobile Transaction scenario in India

Several banks and financial institutions in India provided customized mobile banking facilities.
Many mobile applications provided by banks could be installed on a wide range of mobile
platforms and were easy to use. However, mobile banking was different from mobile payments in
some ways. Mobile payments refer to Monetary transactions happened between two parties (users
and merchants) who subscribed to the same or different telecom service providers and had the same
mobile payment service.

The World Bank report on financial inclusion provided data pertaining to the usage of mobile
phones for several age-group, income group and education level(See Exhibit 1 A & 1B). The data
revealed immense opportunity for companies like Eko to offer mobile money solutions. The data
clearly showed that a very insignificant portion for the total population had been using mobile
phones for transactions such as receiving money, sending money and paying bills for utility
services (see Exhibit 1A). The data showed a steady increase of 2 percent over time. The growth of
banking was substantial, with respect to both users and the number of transactions. As per national
payment corporation of India, the Mobile Money Identifier (MMID), which is a seven digit number
used during Immediate Payment Service (IMPS), increased about 30 percent on year to year
growth; No. of MMIDs issued till November, 2014 is 70.5 million whereas it was 54.3 million in
November, 2013. (2) (Exhibit 1C)

In last few years, the trend of mobile banking has been growing and value increased by
108.5% (53.30 million in 2012-13 vis-à-vis 25.56 million in 2011-12) and 228.9% (INR.59.90
billion in 2012-13 vis-à-vis INR.18.21 billion in 2011-12) respectively (3). The trend in usage of
Mobile Banking in the last three years is given Exhibit 1D.
1. Dr.Parijat Upadhyay and Anirban Sharma wrote this case solely to provide material for class discussion. The authors do not intend to illustrate
either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to
protect confidentiality.

2. http://www.npci.org.in/impsVolumes.aspx

3. http://rbi.org.in/scripts/PublicationReportDetails.aspx?UrlPage=&ID=760

2
 315-128-1

All leading banks in India, both public and private, are promoting mobile banking since last
few years according to their individual financial inclusion strategy. State Bank of India, largest
bank in the country is also leading market player in mobile banking with 57% market share in
volume of transaction and share of 17% in monetary value catering to 95 lakhs mobile banking
users (4). During the FY 2012-13, financial transactions to the tune of INR 19.33 billion were done
through the service resulting in a total income of INR 46.7 million (5). On the same note, a Boston
Consulting Group (BCG) study indicated that the value of transactions from mobile banking users
in India was expected to reach $350 billion by 2015, thus opening a huge opportunity for banks,
telephone companies, phone manufacturers and service providers (6). 4 Many private and public
sector banks had launched mobile banking services. In 2010, many banks collaborated with other
players in the mobile banking ecosystem to provide effective services. The industry analysts
suggested that the growth in the number of m-banking users and mobile services such as third
generation (3G) and fourth generation (4G) would be major factor in near future.

Banking Correspondent Model to Achieve Financial Inclusion

To increase the scope of financial inclusion and maximize spread of the banking sector, financial
institutions are permitted to utilize the services of Micro Finance Institutions (MFIs), Non- Self
Help Groups (SHGs), other Civil Society Organisations (CSOs) and Governmental Organisations
(NGOs) as intermediaries in providing banking and financial services through the Business
Facilitator and Correspondent models. Business correspondents are bank representatives for helping
customers to open bank accounts with a means of a mobile device. Business Correspondents get
commission from bank for every new account opened, every transaction made via them, every loan-
application processed etc. They advise customers, about how to save/invest money create awareness
about savings. They also collect loan applications, forward them to bank after verification of
person’s identity, home-address etc. About 2, 48,000 BC operating had been working as on March
31, 2014, giving administrations through around 3, 33,000 BC outlets. About 117 million
fundamental sparing bank store accounts opened through BCs stayed extraordinary as on March 31,
2014 (7). The growth of business correspondence model is shown in Exhibit – 2.

4. State Bank of India, Annual Report 2013-14, https://www.sbi.co.in/portal/web/corporate-governance/annual-report-2013-14

5. State Bank of India, Annual Report 2012-13,

6. ‘Indian telecom market poised to cross $100 billion by 2015: Boston Consulting Group’, www.tele.net.in/view-point/item/6764-indian-telecom-
market-poised-to-cross-$100-bn-by-2015-boston-consulting-group?format=pdf accessed on 18 July 2013.

7. Reserve Bank of India, Annual Report 2013-14, http://rbidocs.rbi.org.in/rdocs/AnnualReport/PDFs/RBIARE210814_FULL.pdf

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Mobile Phone User in India

A research paper from the World Bank uncovered that, in the middle of April and June 2011, 35%
of Indian individuals had formal records, the half worldwide normal and the 41% normal in creating
economies. (11), (12), (13).According to reports from the Telecom Regulatory Authority of India (TRAI)
published, till 31st Jan, 2014, three million mobile subscribers were included on mobile operating’
lists, taking the total user base in the country to 922.04 million (14). Bharti Airtel, the country's
largest operator, led by adding 2.4 million new subscribers in the Jan-14, increased its mobile phone
base in the country to 200.8 million till Jan-2014. Airtel’s competition, such as Idea Cellular, added
as many as 1.55 million users in Jan-2014, while other players, such as Vodafone, Reliance
Communications and aircel added 1.78 million, 0.4 million and 1.53 million new users,
respectively. All other players saw a churn in their customers (15).

Financial Inclusion Using Mobile

Financial Inclusion is delivering the financial and banking services to disadvantaged,

underprivileged and low income segment of our society at affordable costs. A major section of the
working class, known as the unbanked or under banked has no access to the myriad of new
financial services provided by the financial institutions. It is hence one of the areas with high
potential of growth which in turn can be the reason of high growth in the financial sector. Though
this segment does not exposed to any financial services, but in recent year they are using telecom
services with widespread growth of mobile communication. As per telecom subscription data
published by Telecom Regulatory Authority of India, with 930.2 million (16) subscriber till
September-2014, teledensity increased to about 76%. Thus the goal of financial inclusion can be
achieved with mobile banking at faster speed. Due to less infrastructure cost to financial institutions
and no extra investment from customer, mobile banking is very convenient way and useful medium
to provide financial service, where most of the population is unbanked. Mobile banking is the
lowest on cost parameter with respect to branch banking and internet banking service. (17) With
advent of technology and increasing awareness, people are using mobile banking with greater ease,
pushing financial inclusion towards success. (17), (18)
11. http://datatopics.worldbank.org/financialinclusion/regional-comparison/

12.‘India lags developing countries in opening bank accounts’, www.livemint.com/2012/04/22214720/India-lags-developing-countrie.html accessed

on 20 June 2013.

13. ‘TRAI performance indication”, www.trai.gov.in/WriteReadData/PIRReport/Documents/Indicator%20Reports%20-01082013.pdf accessed on

20th 2013.

14.
http://www.trai.gov.in/WriteReadData/WhatsNew/Documents/Press%20Release%20on%20'Telecom%20Subscription%20Data%20as%20on%2031s
t%20January,%202014'.pdf

15. Highlights of Telecom Subscription Data as on 30th September, 2014, published by

TELECOM REGULATORY AUTHORITY OF INDIA, http://www.trai.gov.in/WriteReadData/WhatsNew/Documents/PR-TSD-Sep-14.pdf

16. http://www.rbi.org.in/scripts/bs_viewcontent.aspx?Id=2598

17. http://articles.economictimes.indiatimes.com/2014-09-18/news/54067954_1_state-bank-sector-lender-icici-bank

18. Initial funds of INR 2.7 crore almost exhausted in 5 months, From EKO

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EKO

Eko gives a low cost foundation fueled by development and innovation to empower instantaneous,
secure and easy monetary exchanges. Eko influences existing retail shops, telecom network and
banking system to stretch out branchless banking and financial solution to the regular man. Eko
likewise cooperates with organizations to offer installment, money gathering and disbursal
administrations. Clients can stroll into any Eko counter to open a bank account, deposit & withdraw
money from his/her account, send cash to any piece of the nation, get cash from anywhere, purchase
mobile talk-time or pay for a lot more services and utilities. A low cost cellular telephone goes
about as the transaction gadget for retailers and clients. Eko gives a multi-modal methodology to
perform a transaction, consequently the financial services can be performed through all telephones
i.e. least to most refined handsets. Eko additionally utilizes a two factor solid validation to transact.
It has made and licensed an ease One Time Password (OTP) generator called 'Okekey', as
demonstrated in Exhibit 3. Performing a transaction just requires numeric education for number
dialing. It has made a world-class exchange stage called ‘Simplibank’ that is utilized by numerous
accomplices.

EKO’s Origin

In 2007, when Indian Government was promoting financial inclusion to a great extent, Abhishek
and Abhinav Sinha, laid the stone for EKO. Easier business correspondent (BC) regulation
provided the platform to source bank accounts to Indian citizens and configure them for mobile
transactions. The mobile payment market was growing and EKO had rightly identified the segment.

Like all other start-ups EKO also faced initial hiccups. After setting up in Sep-07, there initial funds
of INR 27 million almost exhausted in 5 months (19). Then they tied up with Centurion Bank of
Punjab for No frill account as BC. And in Feb-08, after acquisition by HDFC, the partnership ended
and EKO had to terminate 2000 accounts it had acquired. The scenario improved in September 08,
when Bill Gates visited the company and EKO received a grant of almost INR 100 million (20) from
Consultative Group to Assist the Poor (CGAP). Then in February 09, it became BC for State Bank
of India.

EKO initially focused to develop as technology based organization. The Sinha brothers soon
realized that the value of organization mostly depends on the end consumer it serves. So they shift
their brand positioning to more consumer centric. To avoid become another software platform
company and lost in millions, they outsourced their technology and reoriented themselves as a
consumer brand.
19. EKO received a grant of almost INR 10 crore, From EKO

20. Number of CSP, From EKO

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EKO Products
Money Transfer: Eko has partnership with State Bank of India (SBI), Yes Bank and ICICI
Bank for the business correspondence model leveraging the telecom revolution and some of the
retail stores. It transfers money or deposit funds with a nominal charge through Eko counters. It
provide s a secure and fast money transaction saving time and hassle beyond banking hours. The
charges SBI and ICICI bank take are given in Exhibit – 4.

Banking: EKO provides no frills account with minimal documentation through SBI Mini
Savings Account and ICICI Apna Savings Account. It works through mobile and offer
instantaneous transaction.

Payments: Local retail Eko counter offers energize office for all driving versatile and DTH
administration in India.

SimpliBank Platform: The Simplibank stage is a facilitated and overdrawn, eases, shortened
Core Banking System.

Cash Management: Eko offers cash collection and disbursal – total cash management
solutions to Micro Finance Institutions, Government Enterprises and Small, Medium and Large
Scale Enterprises. ASHA (Accredited Social Health Associate) specialists got monetary benefit
from the State Health Society by the utilization of Eko innovation. Enlivened by this, Bihar
Government approached Eko to repeat and scale up the model in their state. Through its
dissemination system of Eko counters it offers services to simple and convenient credit
reimbursement for Saija's clients into their loan account with Saija by means of their closest Eko
counters. This has brought down operating expenses, diminished cash handling risk and empowered
better and convenient MIS and exchange reporting for Saija.

Distribution
Eko leveraged 50 million mom and pop stores existent in India to reach out to its end
customers. It identified these stores as heavy traffic zones having a footfall of 100-150 people a day
in urban areas. The company’s distribution system had a network of retailers functioning as
Customer Service Point (CSP). These were in turn supervised by ‘Super CSPs’ who were the
distributing and trading for various consumer goods and pharmaceutical companies. Eko had 24
Super CSPs which managed 50-100 CSPs apart from acting as regular CSPs, they assisted the CSPs
in cash management services and also provided working capital to the CSPs.

Eko was reported to have around 1300 CSPs by October 2012 with around 70% of them
being in urban areas. By mid-2012 Eko was opening new CSPs at the rate of 300 a month. (21) Eko
employed a stringent selection process for selection of these CSPs as they were then entrusted with
dealing and handling of large volumes of cash. It took Eko around 60-70 days to set up one Super
CSP and a super CSP needed around 20-25 CSPs for viable operation. It trained its CSPs via
classroom sessions or on the job at the outlets. Several CSP are independent counter and shown in
Exhibit – 5.
Marketing and Sales – Eko adopted various techniques ranging from educating people like
branch manager of a bank about the benefits of shifting traffic to the CSP outlet to customer
intensive schemes and also local brand building. It also employed a lot of marketing tools like
organizing street plays and distributing leaflets.
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Eko’s Operation

As part of its operations its user interface was designed keeping in mind its target segment which
constituted of illiterate customers who were low cost mobile phone users as well. Their user
interface hence was designed keeping in mind - target customers who were mainly illiterate, target
users used low cost mobile handsets and had limited or no data connectivity at all and most users
remembered the mobile number of the family members. The existing behavior of their target
customers which was associated with visiting the airtime reseller for prepaid mobile recharge after
which they got a confirmation message on their phones.

Their system hence used mobile numbers instead of bank account numbers and was device
agnostic. The customers could initiate a transaction by dialing a string of numbers. The string had
four parts - Code for identifying Eko, mobile number of the recipient, Transaction amount and
OTPs or One Time use Passwords. Both the receiver and the sender got confirmations on SMS of
the transaction having settled.

Business Model

The cost of the process of setting up of a CSP for Eko was INR.5000/- (22). It was recovered by
billing the CSPs with a non-refundable activation fee worth the same amount. CustomeINR were
charged a fee for all transactions like account opening, remittances etc. Bank shared around 75% of
the fee with Eko and Eko in turn shared 55% with the CSPs. Urban CSPs do around 3-4
transactions a day and the rural ones do around one a day. The fee they offered is described in
exhibit 6. They however keep a low margin on their products. Transaction in a CSP is well
documented and one of the register is shown in Exhibit 7.

Competitive Landscape of EKO

Airtel Money: Airtel Money is one of the best convenient payment alternatives to debit cards and
credit cards especially for the popular e-commerce website like EBay, Flipkart, and Yatra etc. The
product is absolutely free i.e. there is no data charge on activations and also very safe in terms of
paying bills or transferring money. The other good alternatives that Airtel Money providing is send
money, prepaid recharge, digital television recharge, load cash etc. It provides convenient easy and
safe transaction along with multiple offers. As per Cellular Operators Association of India
(COAI), among 726.8 million GSM users Bharti Airtel, the country's largest operator, has total
number of subscribers tallied to 208.2 million, with a market share of 28.41%, at the end of May.
(23)

Vodafone M-Pesa: It is the world’s most successful money transfer service by Vodafone. It gives
“power of money” by converting existing Vodafone mobile phone into a bank account. It is a 24*7
service and this is done jointly with ICICI Bank Ltd. customer needs to provide address and photo
identity proof to open the account along with initial deposit of INR. 100.
22.Cellular Operators Association of India (COAI), http://ibnlive.in.com/news/733-million-gsm-subscribeINR-in-india-airtel-leads-with-2841-
market-share/480165-11.html

23.http://www.pmjdy.gov.in/ArchiveFile/2014/12/11.12.2014.pdf

Fino Pay Tech: It is an Indian financial inclusion solution company, and formed in 2006. They offer
through Joint Liability Group (JLG), a lending model that enables group of 5 or more individuals to

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opt for a group loan where the responsibility of the loan recovery is on all the members. FINO
PayTech Money Transfer gives a convenient and super-fast platform to transfer money from
remitter to beneficiaries even in the remotest areas. Self Help Group (SHG) Loans leverages FINO
PayTech's technology platform and also the pan-India agent named as ‘Bandhu’ network to provide
scalable, fully automated, efficient and cost effective servicing outside their associated bank
branches.

IndiPay: It is intended to give a convenient and easy solutions for housewives, youth and
understudies who are out of the radar of personal bank accounts and also for the 100 industrial
workers who leave their home to work in greater urban areas. Indipay network plans to launch
prepaid debit card for unbanked and under-banked urban dwellers to spread the benefits of banking
coupled with easy and safe electronic transaction.

OxiGen: Oxigen Services India Pvt. Ltd was founded by Mr. Pramod Saxena, an Indian
professional entrepreneur, in a collaboration with the Blue Label Telecom, a South African
company in July 2004 with an objective to reach services to the masses of India, through a virtual
network for Payments and Services.

Suvidhaa: Suvidhaa is a famous organization in the payment and remittances sector. They offered
various services like insurance premium, utility bill collection, money transfer services, mobile and
DTH recharge, through a system of 75,000 establishment outlets across the country.

An overall snapshot of the competitors and their services offered are shown in Exhibit 8.

Pradhan Mantri Jan-Dhan Yojana (PMJDY)

Jan-Dhan Yojana is National Mission for Financial Inclusion to guarantee access to financial
services, to be specific, Credit, Savings & Deposit Accounts, Pension, Insurance, Remittance, in a
reasonable way. PMJDY concentrates on scope of family units as against the prior arrangement
which concentrated on scope of villages. It concentrates on scope of rural development and
additionally urban zones. Prior arrangement focused on just towns over 2000 populace while under
PMJDY entire nation is to be secured by extending banking facilities in each one Sub-Service range
comprising of 1000 – 1500 family units such that office is accessible to all inside a sensible
separation about 5 Km. As on 11/12/14, 904 lakh account is opened (detailed in Exhibit 9) . (24)

Rupay Debit Card is an indigenous household debit card presented by National Payment
Corporation of India (NPCI). This card is acknowledged at all ATMs and at a large portion of the
POS machines (for making cashless installment for buys) in the nation. Launched in 2012 by
National Payments Corp of India (NPCI), Rupay rivals worldwide payment firms Visa and
MasterCard. Rupay at present offers just platinum cards and gives unplanned protections conceal to
INR.1.00 lac without any charge to the client. Rupay card has a current base of 25 million clients
and is seeing around seven lakh between bank exchanges a day (25).
24.http://www.thehindubusinessline.com/industry-and-economy/banking/jan-dhan-yojana-opens-a-new-door-for-rupay-gateway/article6388715.ece

25.http://businesstoday.intoday.in/story/rupay-card-payment-boost-from-financial-inclusion-jan-dhan/1/210244.html

Rupay's offer of day by day card exchanges, then again, stays little contrasted and the
worldwide firms, which are more settled, offer both charge and Visas and are acknowledged by
more retailers. Rupay clients represent only 1.5 per cent of day by day card exchanges of just about
one million at retaileINR. Starting July, banks issued just under 435 million installment cards in the
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nation (26). Under the Jan Dhan plan, which was propelled late in August, Indians who open a
ledger surprisingly consequently get a Rupay card. With the PMJDY getting almost 25 million new
ledgers inside seven days of dispatch, each one record holder gets a Rupay check card alongside
his/her record. The home-developed card installment system Rupay therefore supported by money
related consideration drive hopes to fourfold the quantity of clients by March. As on 10/12/14, the
aggregate quantities of rupay card issued under Jan Dhan Yojana is 59942767 (27).

Mobile Number of an account holder is entered in customer's account in CBS System by the Bank
on the basis of information given in the Account Opening Form. Also, for existing accounts, banks
permit seeding through ATM, SMS from registered mobile, net-banking or on making a request in
the branch (there may be variations depending on the bank).

Changing Business landscape

India positions third among the top nations for cell phone clients with an expected 117 million
supporters, behind just China and the US. On the other hand, smartphone penetration is the lowest
in the country, likewise implies there is a huge scope for development in the future. The
development of cell phone subscribers in India in 2013 remained at 55 per cent, which was the
fastest among the first 30 cell phone markets on the planet as indicated by the most recent 'Web
slants 2014' report by Mary Meeker, accomplice at the funding firm KPCB. The Indian cell phone
market was developed by 84 per cent year-on-year in Q2 2014. As per IDC Asia Pacific Quarterly
Mobile Phone Tracker, merchants delivered a sum of 18.42 million cell phones in Q2 2014
contrasted with 10.02 million in the same time of 2013 (28). Among the players Samsung delighted
in the business pioneer with 34 percent of the cell phone business, emulated by Mircromax. The
detailed market share is given in Exhibit 10.

With advent of Smartphones, from barter system to online payments, modes of payment and
transferring money have seen many innovations. Now a day’s a lot of new services are launched for
the smartphone users – ranging from book transport to buying apparels. These services are offered
at a reasonable price with an option to pay from smartphones with the help of various apps.
Through its mobile wallet, Oxigen wallet, users can transfer money to anyone through social media
platforms such as Facebook, Twitter, WhatsApp, Google+ and WeChat,

26.http://www.pmjdy.gov.in/ArchiveFile/2014/12/10.12.2014.pdf

27.http://indianexpress.com/article/technology/mobile-tabs/top-5-smartphone-brands-in-india-in-2014/

28.http://forbesindia.com/article/checkin/indias-ecommerce-market-set-for-70-growth-in-revenue/38931/1

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E-commerce

As specified above, development of e-business industry has been remarkably high. As per an
October report by Gartner, an American information technology research and admonitory firm,
ecommerce in India is prone to cross $6 billion in incomes in 2015 (29), recording a 70 percent
expansion from a year back. In India, the recent years, the part has become by very nearly 35%
CAGR from 3.8 billion USD in 2009 to an expected 12.6 billion USD in 2013.(30) The growth is
being aided by the fact that more than 30 percent of traffic on ecommerce platforms is now coming
from mobile phones and tablets. Mergers and acquisitions (M&A) activity has shown considerable
growth as well.

Nonetheless, its development is reliant on various factors and internet connectivity is the most
essential among them. According to Forrester Mckinsey report of 2013, India has 137 million
internet users and penetration rate is 11%. Downright rate of online purchasers to internet users is
18%. Contrasted with India, China, Brazil, Sri Lanka and Pakistan have web populace of 538
(40%), 79 (40%), 3.2 (15%) and 29 (15%) millions individually. Subsequently, lower internet
density still remains as a major hindrance for e-trade.

EKO’s Business Dilemma

In Delhi, Eko has been the biggest remittance player, however, with business model around
remittance getting better with easing of regulation, lots of players have come in and it has been
decline in our market share in Delhi. On 27th of November 2014, RBI issues a guideline to set up
new small and payment banks, to take the financial inclusion to the next level. How does Eko grow
in these circumstances?

There are lots of changes happening on the product side, some of them mentioned below, How does
Eko leverage the below and leap-frog its product offering?

29.http://www.pwc.in/assets/pdfs/publications/2014/evolution-of-e-commerce-in-india.pdf

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Exhibit 1A: MOBILE TRANSACTIONS IN INDIA

Pay bills (% age 15+) 2.24

Pay bills, female (% age 15+) 1.31
Pay bills, income, bottom 40% (% age 15+) 0.26
Pay bills, income, top 60% (% age 15+) 4.47
Pay bills, male (% age 15+) 3.15
Pay bills, older adults (% age 25+) 2.61
Pay bills, primary education or less (% age 15+) 1.35
Pay bills, rural (% age 15+) 1.73
Pay bills, secondary education or more (% age 15+) 6.81
Pay bills, urban (% age 15+) 3.79
Pay bills, young adults (% ages 15-24) 1.19
Receive money (% age 15+) 1.99
Receive money, female (% age 15+) 1.78
Receive money, income, bottom 40% (% age 15+) 1.49
Receive money, income, top 60% (% age 15+) 2.56
Receive money, male (% age 15+) 2.19
Receive money, older adults (% age 25+) 2.29
Receive money, primary education or less (% age 15+) 1.71
Receive money, rural (% age 15+) 1.94
Receive money, secondary education or more (% age
15+) 3.41
Receive money, urban (% age 15+) 2.05
Receive money, young adults (% ages 15-24) 1.13
Send money (% age 15+) 0.61
Send money, female (% age 15+) 0.35
Send money, income, bottom 40% (% age 15+) 0.26
Send money, income, top 60% (% age 15+) 1.01
Send money, male (% age 15+) 0.86
Send money, older adults (% age 25+) 0.74
Send money, primary education or less (% age 15+) 0.39
Send money, rural (% age 15+) 0.53
Send money, secondary education or more (% age 15+) 1.77
Send money, urban (% age 15+) 0.85
Send money, young adults (% ages 15-24) 0.26

Source: Global Findex Report by World Bank, www.worldbank.org, accessed May 10,
2013.

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Exhibit 1b: Literacy Rates in India

Absolute Numbers (000') Percent to Literate

Level of Education
Persons Males Females Persons Males Females

Literate 560,688 336,534 224,154 100.0 100.0 100.0

Literate without Educational
20,023 11,361 8,662 3.6 3.4 3.9
Level $
Below Primary 144,831 81,148 63,683 25.8 24.1 28.4

Primary 146,740 83,525 63,215 26.2 24.8 28.2

Middle 90,227 55,940 34,286 16.1 16.6 15.3

Matriculation/Secondary 79,230 51,202 28,028 14.1 15.2 12.5

High Secondary/
Intermediate/Pre-University/ 37,816 24,596 13,220 6.7 7.3 5.9
Senior Secondary
Non-Technical Diploma or
386 259 128 0.1 0.1 0.1
Certificate Not Equal to Degree
Technical Diploma or
3,667 2,901 766 0.7 0.9 0.3
Certificate Not Equal to Degree
Graduate and Above 37,670 25,533 12,137 6.7 7.6 5.4

Note: Literacy rate calculated by taking the total population of a place into account is
known as the crude literacy rate. By comparison, calculating the effective literacy rate includes the
population aged 7 years and above. From 2001 to 2011, the effective literacy rate in India
increased to 74.04 %. The male effective literacy rate is 82.14%, and the female effective literacy
rate is 65.46%.

Source: www.censusindia.gov.in and data compiled by authors, accessed October 12, 2014.

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Exhibit 1C :

Month No. of No. of Total No. Total INR

Member MMIDs Transaction
Banks Issued
(in lacs) (in lacs)
November, 2014 71 705.0 7,811,228 541,560
October, 2014 71 685.0 6,835,765 510,381
September, 2014 69 670.3 6,169,981 447,967
August, 2014 67 632.3 5,056,836 367,792
July, 2014 65 629.7 4,497,034 319,640
June, 2014 63 619.0 3,901,865 274,549
May, 2014 62 606.3 3,490,850 253,731
April, 2014 60 595.2 3,277,958 226,593
March, 2014 60 584.9 3,166,809 215,423
February, 2014 59 581.5 2,360,074 153,117
January, 2014 59 568.4 2,153,883 139,489
December,2013 59 557.6 1,942,923 123,520
November, 2013 59 543.2 1,394,850 93,491
October, 2013 59 537.6 1,310,790 78,472

Exhibit 1D :

Year No. of User Volume Value

(Million) (Million) (Billion INR.)
2012-13 22.51 53.3 59.9
growth over the previous year 74% 109% 229%
2011-12 12.96 25.56 18.21
growth over the previous year 117% 273% 197%
2010-11 5.96 6.85 6.14

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Exhibit 2: Business Correspondents Progress of SCBs in Financial Inclusion Plan

(excluding RRBs)

Particulars Year ended Progress

April
Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 2013 -
Mar-14
No. of BCs/BC Agents 33,042 57,329 95,767 NA 248000
deployed
Total number of banking 34,174 80,802 141136 221341 187167
outlets in villages Through
BCs
Urban Locations covered 447 3,771 5,891 27,143 60,730 33,587
through BCs
Basic Savings Bank Deposit 13.27 31.63 57.3 81.3 116.9 35.7
A/c through BCs (No. in
millions)
Basic Savings Bank Deposit 10.69 18.23 10.54 18.2 39 20.7
A/c through BCs (Amt. in INR
billion)
ICT A/Cs-BC- Transaction - 26.52 84.16 155.87 250.5 328.6 328.6
(No. in million) (During the
year)
ICT A/Cs-BC- Transactions - 6.92 58 97.09 233.9 524.4 524.4
(Amt. in INR billion) (During
the year)

Progress in Business Correspondence model

50 150
40
100
30
20
50
10
0 0
Mar-10 Mar-11 Mar-12 Mar-13 Mar-14

Basic Savings Bank Deposit A/c through BCs (Amt. in Rs billion)

Basic Savings Bank Deposit A/c through BCs (No. in millions)

Source: Reserve Bank of India, Annual Report 2012-13 and 2013-14.

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Exhibit 3 : EKO’s Operation

Exhibit 4: Money Transfer Charges

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Exhibit – 5: Customer Service point in Lucknow

Exhibit 6- Charges for transaction

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Exhibit – 7: Transactions registers at CSP

Exhibit – 8: Competitors

PlayeINR Mobile Bill DTH Bill Transfer Target Group

Payment Payment money
Airtel Money P P P Urban
Vodafone M-Pesa P P P Urban
FINO P P P Rural
IndiPay P - P Rural
OxiGen P P P Rural
Suvidhaa P P P Rural

Exhibit – 9: Status of Jan Dhan Yojana

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Exhibit – 10: Android Phones in India

Exhibit – 11: E commerce players

PlayeINR Amazon E bay Flipkart Snap deal

Airtel Money P P P P
Vodafone M-Pesa P P P P
FINO
IndiPay
OxiGen P P P P
Suvidhaa

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