Agent Network and Cash ManagementPartnerships against Poverty Summit, Manila
October 9-11, 2013Raj Singh-Khaira VP-Fino Paytech Limited
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Zone Head
State Head
Cluster Head
District Coordinator (handles ~12 BCs)
Block Coordinator (handles ~12
Agents)
Agent(services ~750
customers)
Agent Network
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Snapshot of our largest geography for cash disbursement
1,161
4,173 3,987
2,148
1,263
193
832
1,456
720 569 336
1,355
Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13
Disbursement (Rs. Mio)
• Total Disbursement in our largest geography for FY 12-13 was ~Rs. 18,192 Mio with
• Peak months touching ~Rs. 4,173 Mio.
• Agents cash in hand in range of Rs. 0.2 Mio to 1 Mio
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Cash management philosophy
• Centralized fund flow is monitored i.e. all fund flow starts from HO (Mumbai) and is controlled & monitored from here:– Cash exposure for Agent/BC (Block Co-ordinator) /DC (District Co-
ordinator) is controlled by having set cash limits for each at any given time.
– Agent Cash in Hand (CIH) is monitored via MIS from the field and is validated against auto generated reports (CMS dashboard).
– Periodic reconciliation is conducted with frequencies varying from 1 week to a month.
– Regular Cash/Transaction holidays ensure system hygiene as Cash reported by the field during the cash holiday equals Cash in Bank.
• All of the above are further re-enforced by Cash in Transit and Fidelity Insurance
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CMS framework
• Net cash with Agent
• Net cash = Total Deposits – Total Withdrawals If the deposits are more than withdrawals, this means FINO’s
money is with Agent. Since Agent is holding FINO cash with him, his outstanding
amount will be displayed as negative balance. If the withdrawals are more than deposits, this means Agent is
paying out to the customers. FINO is liable for the withdrawals given by the Agent, his
outstanding amount will be displayed as positive balance.
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CMS framework Accounting Entries
Debit CreditFI (Financial Inclusion)
Customer Credit/ cash deposit Agent / Member A/cCustomer Liability A/c
Agent to BC Transfer BC Agent
BC Cash deposit to Bank Bank A/c Agent / Member A/c EBT (Electronic Benefit Transfer)
E-Pay Fund received Bank A/cIncoming Control A/C
E-Pay uploaded in FTS Incoming Control A/C
Customer Liability A/c
Daily Fund Transfer for DisbursmentAgent / Member A/c Bank A/c
Daily disbursementCustomer Liability A/c Agent / Member A/c
Cash Deposit the bank account by agent Bank A/c Agent / Member A/c
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Payment Cycle
For projects, government
provides beneficiary list
E-Pay Order is received by
Central Operations
Team
Finance Operations confirms the physical
receipt of Funds to FFF (FINO Fintech
Foundation) account
Funds transferred to
DC/ BC
Funds received by
Agent
E-Pay Order is uploaded by Transaction Team
basis URN of customer and mapped Agent’s
TID
Field POT
Device
EDPS / TDPS
BODEOD
BOD downloads the credit balance to update the customer
account balance
EOD uploads the
transactions done on field through POT Devices to reflect in customer account
CMS team verifies the cash in hand with the BC/DC/Agent to
whom the funds are to be remitted
Basis the existing cash in hand & the limits of the
BC/DC/Agent, calculates the fund transfer amount
Daily Funds movement between the
DC/BC/Agent is monitored basis the
Cash movement tracker
Actual Agent disbursment is monitored through the CMS dashboard reflecting the CIH
with the Agent.
In case of exceptions if the Agent pays the beneficiary without performing txn, the
same is marked in the acquaintance sheet & later
txn is processed
Cash Remitted/E-pay Order = Disbursement + CBM + MM + CIH + CIB
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Monitoring Cash handovers
Cash Movement Report is to monitor the cash exchange in the field. This helps DC to track daily cash movement between DC, BC & Agent. The DC can also monitor the frequency at which the BC is meeting his Agent.
Positive balance under the BC heading indicates that the BC has handed over cash to the Agent. 4th May 2011 BC GAJANAN KABIR Handover cash amounting to Rs. 290974 to Agent(TID 10461301)In above report Agent Collected cash form BC for disbursement , so his balance reflects as –ve Cash.
Negative balance under the BC heading indicates that the BC has handed over cash to the Agent.4th May 2011 BC GAJANAN KABIR reconciled the manual payments details amounting to Rs. 290974 to Agent(TID 10461301)
In above report Agent provided details of manual disbursement, so his balance reflects as +ve Cash.
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Monitoring daily CIH
CMS Dashboard enables the HO to monitor daily Cash in Hand of the Agent /BC & DC. This data is used by Central Team & field Team to check & monitor the daily cash position. POT Settlement details are also availed in this report . This is basically net float report.
Cash In hand with Agent in below report -3133
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Transaction Holiday
• Transaction Holidays – Conducted once a month in all transacting Districts:• At an agreed time and date all pots are locked from doing
any transactions.• Field deposits all Agent/BC/DC cash into the FFF pool
account – verified by Operational Finance Team.• Backend Recon team generates a report tally up the FTS &
customer card balances.• Pots are unlocked to commence transactions.
Thank you