JULY 2015

Intelligent
Cash
Deposit
Disclaimer: AGS Transact Technologies Ltd. is proposing, subject to applicable statutor y and regulator y requirements, receipt of requisite approvals, market conditions and other considerations,
to make an initial public offer of its equit y shares (Equit y Shares) and has filed a Draf t Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The DRHP is
available on the website of the SEBI at http://www.sebi.gov.in and the websites of the Book Running Lead Managers A xis Capital Limited, Citigroup Global Markets India Private Limited, HDFC Bank
Limited, ICICI Securities Limited and Kotak Mahindra Capital Company Limited at www.axiscapital.co.in, www.online.citibank.co.in/rhtm/citigroup globalscreen1.htm, www.hdfcbank.com, www.
icicisecurities.com and www.investmentbank.kotak.com respectively. Potential investors should note that investment in equit y shares involves a high degree of risk and for details relating to the
same, refer to the Red Herring Prospectus which may be filed with the Registrar of Companies in future, including the section titled Risk Factors. Potential investors should not rely on the DRHP
filed with the SEBI in making any investment decision.
 CONTENTS

6
Cover Story:
Fuel your work efficiency
with Intelligent Cash Deposit

10 Q&A:
Mr. Thomas Fell, Senior VP,
Wincor Nixdorf

13
Spotlight:
Securevalue India Ltd.

18
Product Profile:
Bunch Note Acceptor: C4040
Editor: Suja Mathew-Kulkarni Assistant Editor: Sandeep Kannan
Editorial Team: Shreyas Rege, Vrishali Guthe
Design team: Manasi Kajabaje, Dhiraj Khilari and Nishant Bhoite
Your feedback is important to us. Kindly email us your opinion on our newsletter:
marketing@agsindia.com
AGS UPDATES
Federal bank places cash dispenser ProCash 280. AGS will deploy the ATMs
orders with AGS
Kerala based Federal Bank has placed
order for Cash Dispenser, ProCash 280
for deployment in onsite and offsite
locations across India. ProCash 280 has
a small footprint with intelligent safety
features, a flexible architecture and
user-friendly interface.
AGS wins ACI Innovation Award
AGS won Innovation Award from ACI
Worldwide, a leading global provider of
electronic payment and banking solutions.
AGS transaction switching ser vices
c ate r to t h e n e e ds of bank s an d
other financial institutions across the
payment transactions value chain.
Th e s e s er v ice s include as sis t ing
banks in the issuance of new cards,
migrating their existing card base and
the authorization of cards, enabling
improved customer experience. The
switching ser vices are built around
Postilion, ACIs market-leading consumer
payment solution.
Union Bank of India grants
tender for CDs
The tender was won for supplying and
installation of Cash Dispenser (CD):
4 AGS News July 2015
AGS Updates
at onsite and offsite locations of Union
Bank across India.
Co-operative Banks place
orders for Cash Dispensers
Co-operative banks have placed orders
for Cash Dispenser ProCash 280. These
are repeat orders placed by the banks,
based in Maharashtra and Himachal
Pradesh.
AGS installs Cash Recycling system
at Indian Bank branch
Chennais Egmore branch of Indian
Bank has installed cash recycling
system (Wincor Nixdorf C4060) by
AGS. C4060 dispenses deposited cash
after validation. The system offers
cash management, security as well as
transaction processing.
AGS bags order from Chaitanya
Godavari Grameena Bank
Chaitanya Godavari Grameena Bank, a
Regional Rural Bank sponsored by Andhra
Bank has placed orders for ProCash
280 Cash dispenser. The bank will be
deploying the ATMs in Andhra Pradesh
region and is leveraging technology for
providing value based services to its
customers in its area of operation.
agsindia.com
Pro Cash 280
Co-operative banks to install AGS
Banking transaction terminals
Some co-operative banks have placed
orders for multiple suite of Banking
transaction terminals: Cash Dispenser
- ProCash 280, Cash Recycler - C4040,
Through-The-wall ATM - ProCash 285.
With the installation of these new
systems, the co-operative bank s in
India will b e able to automate
t h eir business processes thereby
giving a new experience to their
customers.
Andhra Bank order received
for Cash Dispenser
AGS bags order from Andhra Bank for
Cash Dispenser ProCash 280. This is
a repeat order received by the bank
for deployment at onsite and offsite
locations all over India.
agsindia.com
Banco de Chiles order for 500
ATMs: An investment in customer
and staff security
Security has top priority at Banco de
Chile the second largest financial
institution in the Chilean banking
market, with a strong focus on retail
banking. The bank is currently replacing
its automated teller machines with
secure systems from Wincor Nixdorf,
and as part of this process, it has now
ordered another 500 CINEO ATMs.
The Colombian financial institution
Bancolombia hands over the
operation of its self-service
systems to Wincor Nixdorf
Wincor Nixdorf has received a three-
year contract from Bancolombia for
the operation of its 1,160 self-service
systems. The bank also ordered
800 ProCash 280 automated teller
machines. In addition to installation
and maintenance, the service contract
covers the complete management of
the banks self-service device park.
SuperGroup selects Wincor Nixdorf
to provide a managed service and
enhance store IT in seven countries
Wincor Nixdorf has been selected by
SuperGroup, the UK fashion retailer,
WINCOR NEWS
WINCOR NEWS
to provide an IT managed service to the Systme U stores will install modern
support its existing stores in the UK and POS terminals from Wincor Nixdorf that
six other European countries, as well as support the omni-channel approach
supporting future expansion throughout and improve the customer experience
Europe. Under the terms of this contract, Under the large-scale agreement
Wincor Nixdorf will provide dedicated concluded by Systme U and Wincor
first level help desk support and Nixdor f, the French cooperatives
hardware maintenance availability supermarkets will be equipped with an
services for SuperGroups entire store innovative combination of hardware
IT infrastructure to improve uptime and and software solutions that are operated
enhance the customer experience. using services from Wincor Nixdorf. This
will meet Systme Us requirements
SuperGroup awarded this contract to of a foundation for the rigorous
Wincor Nixdorf because of its true multi- evelopment of omni-channel sales and
lingual capability, its ability to provide an improved customer experience.
a standard service delivery model
internationally, and its solution model
that demonstrates a real end-to-end
capability whilst being commercially
attractive. It also recognised Wincor
Nixdorfs world class team and its ability
to provide scalable solutions so that it
can support SuperGroup as its store
network grows.
Wincor Nixdorf supports Systme
Us omni-channel strategy
The French retail chain Systme U and
Wincor Nixdorf are realizing an omni-
channel services concept together that
will include new customer loyalty and
marketing programs. At the same time,
July 2015 AGS News 5
COVER STORY | INTELLIGENT CASH DEPOSIT
fUEL YOUR WORK
EFFICIENCY WITH
INTELLIGENT
cASH dEPOSIT
Cash handling has been largely a
manual and labor-intensive process.
Traditional cash handling methods
not only drain business resources
through increased overheads, but also
create a risk for theft, cash shortages
and robbery. This process has begun
to change with the introduction of
cash automation technology strongly
influencing the payments system. Its
benefits include increased speed of
transactions, accessibility to cash,
security and control of cash balances.
Since, cash usage remains strong,
banks, retailers, petrol stations and
CIT companies are exploring ways to
take advantage of new technologies to
automate their cash handling functions.
Robbery at petrol stations and during
cash-in-transit has become a common
phenomenon across the world. The
mishandling of cash causes for greater
damage in absolute terms - the loss
of cash through internal pilfering at
petrol stations - loss of image of the
company. Cash handling is expensive,
largely because it consumes time
which includes the basic cash handling
procedure itself. Business owners
need to examine the cost and risk
that traditional cash management
processes pose. These procedures
6 AGS News July 2015
produce a greater margin of human
error and more valuable man hours
lost in the process. In other words,
the correct handover when changing
shifts, counting and sorting notes
and packing and booking cash in the
back-office and the most challenging
part is when cash is transported from
the station to the bank. Depositing
the cash in a simple safe in-store or in
a 24/7 bank branch isnt convenient
or secure because it takes time and
increases the cash exposure in transit.
In addition, internal theft is difficult
to prevent with little control of the in-
house cash process.
Over and above, there is another
challenge - the costs: many banks
today are charging fees for cash
deposits. Moreover, the discovery and
rejection of counterfeit notes adds up
significantly to the operating costs.
Saving on back office overheads and
more can be achieved by cut ting
o u t manual c a s h co unt ing an d
management processes.
The oil and gas market in India is
very competitive and there is a need
for secure and effective solution to
reduce operating costs and increase
efficiency at petrol stations. Analysts
say that industry requires solutions to
agsindia.com
improve security and optimally utilise
every step of the overall cash handling
process.
Cash Management has two factors:
Cost
Risk
Cost factor
Time spent in counting and depositing
Insurance Cost
Presence of Counterfeit Notes
Rejections by Bank
Risk factor:
Handling large volume of cash
Operational hours of petrol Stations
Gas station lay out are easy to enter
and exit
A petrol pump would require solution
which would
Eliminate the possibility of accepting
counterfeit currency
Eliminate the possibility of
misappropriation and fraudulent
practices by the station cashier
Lessen the reconciliation and
EOD process.
Removes the disconnect between CIT
Station Manager & Bank
Secure the currency from the time it is
sent from the retail outlet to the bank
CIT Vault.
agsindia.com COVER STORY | INTELLIGENT CASH DEPOSIT

Instant credit to the retail outlets thereby

reducing the float liability of the retail outlets.
Instant MIS on Daily sales revenues

AGS introduces technology based automated

solution for cash management the Intelligent
Cash Deposit (iCD). iCD is designed to deposit
cash at a retail location such as Petrol stations.
It has the capability to identify unauthorised/
fraudulent banknotes at the time of deposit.
The deposited notes are sealed and stored in a
safe which is accessible through one time OTC
electronic lock.

In a petrol station retail environment, cash

attendants get a user-id for their deposits.
These can be tracked, counted and reconciled,
decreasing the overall TAT of an attendant. The
cash can be deposited as and when required
and a confirmation is received on the amount
deposited. This cash is gathered in the deposit
bag which is sealed and collected by Cash
Management Company for bank deposit.

Intelligent Cash Deposit features at a petrol

station:
Provide a mechanism to the station attendants
to identify fake currency at the filling points
Provide a server application that would
provide online connectivity for iCDs
Provide application software that would
provide online balances and reconciliation
systems.
Total amount deposited
Denomination wise
Depositor details
Provide a gateway for the banks to extract
balances on a real-time basis
Provide a web-based monitoring solution
to monitor deposits

July 2015 AGS News 7

COVER STORY | INTELLIGENT CASH DEPOSIT agsindia.com

Process after implementation of iCD

Detects Fake Deposit slip CIT carries

Currency generated the cash
automatically

Collects Cash with Online

Cash from Cashier deposited Cash in iCD
Credit offered
Customers intermediately

Fully secured seal

opened by
authorised person

iCD Benefits:
Security Operational efficiency

1. All cash deposited is accounted for, electronically 1. Online credit-to-money collected

2. Rejects unauthenticated banknote based on banks authorisation
3. All machines can be monitored centrally 2. Instant reports of money deposited
4. Less dependency on manual interferences 3. Single point of contact for all cash management
5. Restricted access to cash

Visual representation of
petroleum forecourt

8 AGS News July 2015

agsindia.com COVER STORY | INTELLIGENT CASH DEPOSIT

Customer Quote
We have done a pilot at 10 petrol stations in Delhi and are satisfied with the
result. With Intelligent Cash Deposit (iCD), we found the right solution to
safeguard cash at petrol stations. Preventing theft has always been a challenge
for us and with the installation of iCD machines, it has minimised the exposure of cash
at petrol stations. Now we will install them in other petrol pumps as well.
- Mr. Ajay Bansal, President, All India Petroleum Dealers Association

Customer Quote The petroleum owners and retailers connected with cash on daily basis would
benefit from Intelligent Cash Deposit solution as it helps in streamlining and
securing their cash environment.

- Mr. Surya Singh, Head - Retail Business

Intelligent cash deposit solution creates convenience of cash reconciliation

for the end user and automates the complete cash handling process. Risk of

cash at forecourt is reduced to some extent, deposited cash information is readily
available and counterfeit currency is rejected on the spot.
- Mr. Satish Zope, President Petroleum Business

Globally intelligent cash deposit solution has been successful. This solution

secures floating cash and an authorised user can remotely monitor cash
deposited throughout the day optimising cash handling process at petrol stations.
- Mr. Kanti Bhanushali, Head Currency Technology

July 2015 AGS News 9


The future
of retail is
seamless
Q&A with Thomas Fell, Senior VP, Wincor Nixdorf
To survive and thrive in the retail industry today calls for a broad overview of
how consumers are shopping, understanding their needs and demands. The
reality is that the Age of Digital Disruption is upon us and retailers all over
the world are scrambling to find an enticing consumer interface to engage,
entertain and empower their customers in their buying journey. While many
retailers in Asia have risen to meet the new realities of retailing, a key thing to
note is seamless omni-channel retailing is the next big thing thus, RETAIL
ASIA brings you this Q&A with Thomas Fell, Wincor Nixdorfs senior vice-
president of Retail, who declares that The Future of Retail is Seamless.
Q. What drives the omni-channel retailing trend?
Thomas Fell: The connected consumer is forcing the retailer to be omni-
channel. The consumer wants to shop simply expects that he can hop across
channels in a seamless way. This is the reality for todays consumers: I can
do a search to buy. I can shop the other way around use the store as online.
The interesting question is, in the future, what is online revenue for the
retailer? Today, online and offline are viewed personally think that in a
few years, we will not differentiate online and offl ine revenue because
we simply cannot separate two. Its no longer online or offline, but
mobile as well. How do you treat a mobile purchase (transaction done
through a smartphone) in a physical store is it online or offline?
Q. What is Wincor Nixdorfs seamless omni-channel retailing initiative?
Thomas Fell: Seamless for Wincor Nixdorf means that we can work across
all the different sales channels and we enable the retailer to identify and
execute customer transactions over all these channels.
This is my qualification for omnichannel retailers. I buy four articles online
and I want to return one of these articles in your store. I come with the
article and I only have my name. Can you identify the online transaction in
the store and are you able to execute the return transaction in the store,
and then perhaps do a new transaction, all in a seamless way?
At present most of the retailers I speak with are not able to do so. Even if
they do, most of the time their processes are manual because their systems
10 AGS News July 2015
agsindia.com
Mr. Thomas Fell
are not seamlessly integrated. So they take back
the article and put it aside, then move it back
to the logistical warehouse and sort out what to
do with it.
For now, they can still manage the manual
processes involved. In future, they will not be
able to because there will be much more traffic
[with the rise of online and mobile transactions].
T h e o mni - c hann e l re t aile r ha s to have a
seamles sly integrated system to cope. To
me, it is seamless retail or out of retail. To be
seamlessly omni-channel, you need all devices
and systems to be omni-channel-ready. Our
ambition at Wincor Nixdorf is to help retailers
offer customers a seamless experience in this
evolving omnichannel sales environment.
Q. What is the retailers challenge in
becoming omni-channel?
Thomas Fell: If we look at what retailers have
done in the e-commerce arena 10-15 years ago,
they have mainly built up an independent online
sales channel. Their e-commerce platform was
run independently of the brick-and-mor tar
operation, simply because their people running
the online channel said that to be fast and
agile in the online world they have to keep the
channels separate.
And this is causing some of the problems today
they have different merchandise management
systems, different sales channels, most of the
time different logistical systems, sometimes even
different assortments. So, if the retailer does not
agsindia.com
have the article you bought online in the
store, you cannot return it. Questions
like that are coming out more and more.
The retailer has two big systems in
place one for the brick-and-mortar
operation and one for the online shop.
How to bring them together now? You
cannot throw away one or the other, but
have to intelligently integrate them at
the transaction level.
This is where Wincor Nixdorfs vision for
omni-channel retailing software starts.
Our core customers are retailers who have
hundreds of stores. They are the No.1 or
No.2 retailer in their markets, like IKEA,
Metro and Carrefour. Many of them face
this online-offline integration challenge.
Q. How does Wincor Nixdorf help?
Thomas Fell: Sof t ware is the key
to enabling omni-channel retailing.
From a hardware perspective, all the
technology pieces are there. The new
part is mobile, how to build a mobile
POS system. So there is some new
mobile hardware innovation to adopt.
But beyond that, its a lot to do with
software integration.
E s sentially the retailer s have
implemented in their brick-and-mortar
business an EPOS system, a store
merchandise management system
that are connected to the central
IT system, plus a separate online
platform. Our idea is we can take the
checkout logic that is used for physical
store checkout and put it onto the
e-commerce platform as a checkout
engine. If you put articles on a belt for
physical checkout or if you put articles
in an online basket on the e-commerce
platform for checkout, the process
and transaction logic from that point
on should be the same. So we put in
the same checkout logic to enable
seamless transactions. The crux is
the POS system. Five years back, the
discussion was about the functionality
of the retail POS system; seamlessly can
you integrate the POS systems. Linking
all the systems and processes between
the physical and online channels poses
huge IT challenges for many brick-and-
mortar retailers whose IT infrastructures
have been designed for physical store
operations and have grown over the
years to include highly heterogeneous
systems. Omni-channel software is
essential for integrated control of the
various processes that are running in
silos today.
Q. What is Wincor Nixdorf s omni
channel solution?
Thomas Fell: Our latest software,
TP.net 5.5, is a truly omni-channel
platform. The new release features
a cross- channel, merchandise
manage m e nt f un c t io nalit y t hat
ensures a consistent link between
sales, merchandise and customer data
flows and allows cross-channel order
processing, item availability checks and
mobile functionalities. A new software
component, called TPCustomer360, not
only off ers greater effi ciency but also
allows a 360-degree view of consumers
behaviour across all channels and has
a customer relationship management
solution in place that enables targeted
promotions. TP.net 5.5 also features
Countr y Packages which facilitate
easy international expansion with the
inclusion of localisation techniques
taking into account in-country fiscal
laws and regulations. We already have
retailers starting to implement TP.net
5.5 with roll-out projects explicitly
based on this software advantage.
Q. In what ways is Wincor Nixdorf
ahead of the game?
Thomas Fell: We have invested a lot
of R&D eff ort in the EPOS technology
to enable seamles s checkout . The
user inter face is becoming ver y
Q & A | MR. THOMAS FELL
important. We are working on how to
generate good consumer experiences
in the s elf- che ckout proce s s . The
user interface has to be much simpler
and easy to use as the customer is
doing the checkout himself. The next
level of our POS development is to
focus on the user e xper ience and
the personalisation element, that is,
making the checkout system more
intelligent and intuitive. For example,
the checkout machine may learn from
the transaction history data that the
customer does self-checkout regularly
and therefore would not need to be
shown a demonstration video.
A b ig area of o ur d e ve lo p m e nt is
mobile enablement . Our declared
goal is to expand business with mobile
and cashless payment systems. For
us, mobility in the retail environment
encompasses three areas: Mobilit y
of store staff in managing inventor y,
ordering, customer service; mobility of
consumers in using their own devices
in stores or devices provided to them to
order, scan and pay for products; and
mobile payment solutions. The openness
to integration will stay a big topic for
the future. If retailers are to be able to
manage sales, orders and deliveries
across all channels in a seamless manner,
they have to be able to get data from all
sources and bring data to all sources.
The retailers IT systems must be able to
integrate merchandising and customer
data, as well as the status of personalised
marketing campaigns across all channels.
Cash and non-cash payment processing
needs to be processed as well as clearing
of downpayments, final payments and
refunds. A consistent database of
produc t s, prices, promotions and
customer data is essential throughout
all shopping channels.
- Article was published as cover story in
Retail Asia (April 2015)
July 2015 AGS News 11
SPOTLIGHT | SECUREVALUE
Securevalue
India LTD.
Within over 2.5 years of its inception,
Securevalue India Ltd. (SVIL) a Cash
Management Services company and
w h o ll y o w n e d s u b s i d ia r y o f A G S
Transact Technologies has crossed
ser vicing more than 10,000+ ATMs.
Securevalue (S VIL) focuses on the
transit, safe keeping (in vaults) and
management of currency and valuables
for banks, financial institutions and
retailer s (including other entitie s
dealing in cash and other valuables).
SVIL also provides cash replenishing,
monitor ing , counting and s or ting
ser vices, vaulting ser vices and
reconciliation services. The customers
include bank s , such as ICICI Bank
Limited, Axis Bank Limited, HDFC Bank
Limited and Ratnakar Bank Limited,
non-bank ATM deployers, such as BTI
Payments Private Limited, Muthoot
Finance Limited, and large retailers,
such as Future Retail Limited.
The services offered by SVIL include:
Cash in Transit Services:
As part of its cash-in-transit services,
SVIL provides for the safe transport of
12 AGS News July 2015
cash. The cash is carried in vehicles,
which are monitore d through an
in-house GPS tracking system. These
vehicles are guarded by armed security
personnel and are equipped with speed
jammers and geo-fencing devices.
ATM Services:
The ATM ser vices of fere d by SVIL
include ATM cash replenishment, ATM
maintenance and repair, deposit pick-
up and cash processing. SVIL trains
employees in providing first and second
line maintenance and basic repair to
ATM hardware, thereby enabling SVIL to
provide complete line maintenance of
ATMs for cash management customers
and minimizing ATM downtimes.
Cash Processing Services:
Cash processing services offered by
SVIL include counting and sorting
services and reconciliation services.
S V IL has tr aine d p e r s onne l and
facilities to handle large volumes of
cash and ensure cash processing
speed and accuracy.
agsindia.com
Cash Vault Services:
Cash vault ser vices enable better
management of cash operations and
delivers complete cash processing
outsourcing solution for financial
institutions. Cash vault services include
currency inventor y management,
including maintaining currency in secure
vaults and managing the inventory for
cash shipment and consolidation and
branch deposit processing.
Cash Pick-up Services:
Cash pick-up services comprises picking
up cash from our customers outlets,
which include bank vaults and entities
who handle large volumes of cash as
part of their day-to-day operations,
such as large retailers and petrol
stations. SVIL picks up cash from such
outlets in a safe and secure manner,
processes the cash, and deposits it at
the customers designated location,
such as the customers bank.
For Cash Management Services,
contact: Mr. Vijay Iyer
(vijay.iyer@agsindia.com)
agsindia.com

Disclaimer: AGS Transact Technologies Ltd. is proposing, subject to applicable statutor y and regulator y requirements, receipt of requisite approvals, market conditions and other considerations,
to make an initial public offer of its equit y shares (Equit y Shares) and has filed a Draf t Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The DRHP is
available on the website of the SEBI at http://www.sebi.gov.in and the websites of the Book Running Lead Managers A xis Capital Limited, Citigroup Global Markets India Private Limited, HDFC Bank
Limited, ICICI Securities Limited and Kotak Mahindra Capital Company Limited at www.axiscapital.co.in, www.online.citibank.co.in/rhtm/citigroup globalscreen1.htm, www.hdfcbank.com, www.
icicisecurities.com and www.investmentbank.kotak.com respectively. Potential investors should note that investment in equit y shares involves a high degree of risk and for details relating to the
same, refer to the Red Herring Prospectus which may be filed with the Registrar of Companies in future, including the section titled Risk Factors. Potential investors should not rely on the DRHP
filed with the SEBI in making any investment decision.
KNOW HOW | ELECTRONIC PAYMENTS
UPI will
leverage
on mobile,
Aadhaar
{ {
Visualize this scenario: You had engaged a taxi and
have just reached your destination. Instead of paying the
fare in hard currency, you quote your Aadhaar number or
your mobile number or just apayment address to the cab
driver. He then keys in the required details into his mobile
and the fare, which will instantaneously land on your
mobile. You then make the approval for the payment.
The fare gets transferred into the drivers account.
Or this scenario: You want to buy a train ticket through
IRCTC. You log in to irctc.co.in and enter the travel
details. Once itinerary is finalized simply enter the
payment address and authorize the payment. With
couple of entries your ticketing will be completed. The
process is instantaneous.
Or this one: You have an account with a wallet provider,
say for example, myWallet, which is a PSP. You regularly
book cabs via Meru. As part of your profile with Meru,
booking application, you have provided your payment
address at myWallet. You just use myWallet mobile
application and authorize Meru payee address to auto
charge you, say within Rs. 1500. Now, every time you
travel using Meru cabs, you can simply walk out of the
cab and Meru can charge you automatically within the
set limit. You and Meru can be on two different PSP
networks too.
These and several other similar scenarios are not just bits
of imagination. These can very well happen in about six
months time, when the National Payments Corporation
of India (NPCI) formally launches its highly efficient
Unified Payment Interface (UPI), the next generation
peer-to-peer immediate payment system just by using
personal phone and existing systems like Immediate
14 AGS News July 2015
agsindia.com
Electronic payment system in the country is poised
to leapfrog into the future. The Unified Payments
Interface developed by the National Payments
Corporation of India is going to be a game changer
Payment Service (IMPS) or Aadhaar-enabled Payment
Systems (AEPS) and ensure settlement across accounts.
Says Dr N. Rajendran, Chief Technology Officer at NPCI,
who is the chief mover behind the interface: We at NPCI
believe that UPI will simplify the disparate payment
systems in the country even as it will revolutionize the
e-commerce space. The remittances and payment
inclusion leveraging the growing smart phone schemes
will get a big boost with this simple and hassle free
payments system.
LEVERAGING ON IMPS
UPI leverages on IMPS, which now allows a customer
to transfer money in an instant, anytime. In fact it is a
kind of a unified layer that will allow interoperability,
says Dr. Rajendran. It will sit on the existing payments
infras tr uc ture of bank s and allow money to be
transferred from a bank to any other bank using a
mobile phone. It will allow account holders across
all bank s to send and receive money from their
smar tphones using their Aadhaar number, mobile
number and a virtual payment address. The user does
not need to enter any bank account information. When
biometrics becomes standard on smartphones in the
near future, the customers can initiate a transaction
using his fingerprints, which will be cross-checked
with the biometric database with the UIDAI and once
verified, the transaction will be executed in an instant.
agsindia.com
Even though it is mobile based, UPI is
as secure as EFT. In every transaction
between individuals, the system will
authenticate the profile using the
Aadhaar card or mobile number of
the sender and receiver. In addition,
none of the information such as PIN,
passwords, biometrics, etc, is allowed
to be stored by the PSBs and all
information are securely captured,
encrypted and transmitted to issuer.
Authentication is t ypically done at
the account provider domain, says Dr
Rajendran. Authentication schemes
are separately evolved as new payment
c hann e l s e vo l ve d . W hile num e r ic
or alpha-numeric PIN/ password is
the dominant authentication factor,
different PINs were issued for different
c hann e l s (inte r n e t PIN , ATM PIN ,
mobile PIN, etc.). In addition, OTP
based authentication is used heavily
these days to offer 2-FA authentication
s c h e m e s . O n e au t h e nt ic at io n is
re quire d to b e p e r fo r m e d b y t h e
Payment Service Provider while the
other is performed within the domain
of the account provider.
TRUSTED AUTHENTICATION
He says traditionally, payment account
providers themselves provided the
Dr. N. Rajendran emphasizes UPI
recognizes smartphones as an
integral part of peoples identity
authentication scheme. Account
management (KYC, opening account,
managing transactions, etc) were tightly
coupled with internal authentication
schemes. The account management
including K YC etc may be loosely
coupled with authentication. Aadhaar
authentication is one such trusted
external authentication scheme used
today within the payment systems.
Micro-ATMs (hand-held with biometric
sensors) used by BCs take advantage
of Aadhaar authentication via NPCI
which, in turn, is trusted by banks
to conduct payment transactions.
Digital signatures, especially proposed
Aadhaar enabled DSCs, can also play
an impor tant role to identif y the
authenticity of the request and bring
out new ways of issuing e-mandates
and other payment instruments.
In this unified architec ture, the
o bje c t i ve is to e nab le mult ip le
authentication schemes (account
provider as well as trusted 3rd party
like UIDAIs Aadhaar authentication)
without tightly coupling with account
provisioning and management.
T h i s a ll o w s o n e o r m u l t i - f a c t o r
authentication schemes to be plugged
into the architecture as long as account
providers allow such trusted external
KNOW HOW | ELECTRONIC PAYMENTS
authentications, says he. There are
advantages. Today, authentication
and authorization are part of the
same transaction flow and inline.
But, in newer systems like AEPS,
use of third party authentication is
followed where authorization is still
done within the banking system.
Adopting 3rd party authentication
and using token less payment scheme
allows banks to reduce the overall
issuance (card, PIN, etc) cost while still
keeping authorization and account
management within its control.
UNIFIED LAYER
You are talking about a unified layer.
Can you explain the system in terms
of convenience, in terms of universal
application?
UPI allow s integr ation of US SD,
smartphone, internet banking and
other channels onto a common layer at
NPCI. This common layer uses existing
systems such as IMPS or AEPS to initiate
transactions and ensure settlement
across accounts. Usages of existing
systems ensure reliability of payment
transaction across various channels
and also take full advantage of all the
investments so far. This unified layer
offers next generation peer-to-peer
July 2015 AGS News 15
KNOW HOW | ELECTRONIC PAYMENTS
immediate payment just by using a
personal phone, says Dr Rajendran.
He cites an example: The third party
API integration (merchant sites, etc)
can collect payment from an address
avoiding the need to share account
details or credentials on third party
applications or websites. Within this
solution, payment authentication and
authorization are always done using
personal phone. Since this layer offers
a unified interface, any-to-any (Aadhaar
number, mobile, account, vir tual
addresses) payments can be done using
standard set of APIs.
I can list at least 10 unique features
of UPI:
Ability to use personal mobile as
the primary device for all payments
including person to person, person
to entity, and entity to person
Ability to use personal mobile to pay
16 AGS News July 2015
someone (push) as well as collect
from someone (pull)
Ability to use Aadhaar number, mobile
number, card number, and account
number in a unified way. In addition,
ability to pay and collect using virtual
payment addresses that are aliases to
accounts that may be payee/amount
time limited providing further security
features
Abilit y to make payments only by
providing an address with others
without having ever provide account
details or credentials on 3rd party
applications or websites
Ability for sending collect requests
to others (person to person or entity
to person) with pay by date to allow
payment requests to be snoozed and
paid later before expiry date without
having to block the money in the
account until customer is ready to pay
Abilit y to pre-authorize multiple
recurring payments similar to ECS with
agsindia.com
a one-time secure authentication and
rule based access
Ability for all payment system players
to use a standard set of APIs for any
to-any push and pull payments
Ability to have PSP provided mobile
applications that allow paying from
any account using any number of
virtual addresses using credentials
such as passwords, PINs, or
biometrics (on phone)
Ability to use a fully interoperable
system across all payment system
players without having silos and
closed systems
Ability to make payments using 1-click
2-factor authentication all using just
a personal phone without having any
acquiring devices or having any
physical tokens
SIMPLE
The whole concept, says he, is so
simple that any transaction can be
agsindia.com
easily executed through the UPI. Users
can send and receive money with just
an identifier without having any other
bank/account details. Identifiers are
Aadhaar number, mobile number and
virtual payment address. Paying and
receiving payments are as easy as
making a call on mobile. Taxi booking,
online shopping, paying school fees,
transfer of money are all at your
fingertips. It is virtually an ability to use
a fully interoperable system across all
payment system players without having
silos and closed systems, he adds.
Will the system finally facilitate in creating
cashless transactions in the country?
UPI will help in bringing down cash
transactions, says Dr Rajendran. In a
country like ours, it is difficult to have
a purely cashless society. There are
several factors including prevalence
of cards, POS machines, etc, which
contribute to cashless transactions.
RBIs aim is to cut down the number of
cash transactions and not completely
eliminate these.
TECHNOLOGY
What is the technology behind the
system - the platform, the software,
hardware, etc? How will this change the
payments system horizon in the country?
In short, UPI can be described as
a standardized, secure and cost
effective middleware that interfaces
the backend payment systems like
USSD, IMPS, AEPS, RuPay and NFS
with disparate frontend payment
system players (PSPs) like PPI/MM/
wallet providers, banks and payment
banks , services provided through
*99# for USSD, mobile applications
and internet.
UPI recognizes smart phones as an
integral part of the peoples identity. It
is with this that payments are initiated.
The Aadhaar number constitutes a form
of online verifiable identity, which can
be authenticated by a third party.
When you ask me about the
advantages of the technology platform,
in one word I say it is a unified
platform. It virtually eliminates the
complexity of handling disparate
systems - some of them internal to
NPCI and some of them resident at
the PSPs. It allows customers to enter
credentials on their own device. It
functions in a real-time environment,
allowing banks to provide real-time
experience for interactive transactions.
Much more than all these, it is secure,
allows traceability through the entire
transaction chain and facilitates
monitoring of the system centrally by
NPCI.What about the development
aspects of the system? How long did
it take for NPCI to conceptualize and
design the system?
Says Dr Rajendran: It took us around
three months to conceptualize
and develop UPI. It is an in-house
development. There are certain
refinements that are required to be
done before we are able to deploy it
and this will take some six months.
In developing the system, what NPCI
has emphasized is that it should be
built on open standards so that its
KNOW HOW | ELECTRONIC PAYMENTS
adoption is seamless and easy across
platforms. Another unique feature
is that APIs are integral to the whole
system. So we have ensured that
all APIs are asynchronous in nature
meaning once the request is sent,
response is sent back separately via
corresponding response API. This
allows same APIs to be used for
instant payment as well as delayed
payments. This also allows APIs to
scale without having to wait in a
blocking mode. Callers are expected
to call the API with a unique transaction
ID for which response is sent via a
response API exposed by the caller.
All APIs are expected to work in
asynchronous mode. This allows
the response to API call to return to
the caller immediately after queuing
the request. All request-response
correlation must be done via the
transaction ID set by the originating
point. Exactly same set of APIs are
exposed by NPCI and PSPs. All APIs
must be exposed via HTTPS using
XML input and output. When calling
APIs via a synchronous protocol like
HTTP, listening server should push the
message into a queue and send an
acknowledgement response.
D r Raje n dr an s ay s NP CI ha s jus t
developed the front-end of the system
and a pilot has succe s s f ully b e e n
conduc te d. S e ve r al bank s , which
participated in the pilot, are happy with
the results and they would certainly
participate in the program. I am sure as
we implement UPI say six months from
now, after RBI approves the system,
almost all the banks would be on board.
- This article was published in May in
2015 in Banking Frontier
July 2015 AGS News 17
PRODUCT PROFILE | BUNCH NOTE ACCEPTOR: C4040 agsindia.com

Bunch Note Acceptor:

COMPACT
C4040
SECURE
The C4040 cash recycling system is based on
a technology approach, which has banknote
storage concept as its core element.

Being 45 cm in width, it has a 15 -inch

monitor, recycles up to four denominations
and is suitable for large deposit volumes
and can also be used as a pure deposit or
dispensing system.

For example, the cash deposited at C4040 in

the self-service zone can be used to replenish
other ATMs or refill automated teller safes at
the bank counter.

This makes it possible for banks and retailers

to interchange one and the same cassette
between all systems in the CINEO cash series.

The technology platform optimizes cash

replenishment and pick-up processes. Cash The new weatherised ATM from Wincor Nixdorf

ProCash 285
cycles can be networked across sectors and
integrated in cash center processes.

With optimized cash handling, the C4040
enables operators to cut their costs and
improve on security.
Features:
Deposit/withdrawal of upto 200 notes
Foreign object detection in the input
output tray
Recycles upto four denominations
Scalable cassette concept
Serial number recognition
with simple and intuitive design allows easy cash
withdrawals. Designed for through-the-wall installations,
the compact system fits easily into wall openings.
With features like a rear-load system compliant to
volatile environmental conditions, tamper-preventive
systems, and the ability to integrate biometric sensors
and cameras to identify users, the ProCash 285 is
an ideal solution where space is a limiting factor.

For more information email to:

banking@agsindia.com
For more information email:
banking@agsindia.com

18 AGS News July 2015

agsindia.com

COMPACT
SECURE

The new weatherised ATM from Wincor Nixdorf

ProCash 285
with simple and intuitive design allows easy cash
withdrawals. Designed for through-the-wall installations,
the compact system fits easily into wall openings.
With features like a rear-load system compliant to
volatile environmental conditions, tamper-preventive
systems, and the ability to integrate biometric sensors
and cameras to identify users, the ProCash 285 is
an ideal solution where space is a limiting factor.

For more information email:

banking@agsindia.com

Disclaimer: AGS Transact Technologies Ltd. is proposing, subject to applicable statutor y and regulator y requirements, receipt of requisite approvals, market conditions and other considerations,
to make an initial public offer of its equit y shares (Equit y Shares) and has filed a Draf t Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The DRHP is
available on the website of the SEBI at http://www.sebi.gov.in and the websites of the Book Running Lead Managers A xis Capital Limited, Citigroup Global Markets India Private Limited, HDFC Bank
Limited, ICICI Securities Limited and Kotak Mahindra Capital Company Limited at www.axiscapital.co.in, www.online.citibank.co.in/rhtm/citigroup globalscreen1.htm, www.hdfcbank.com, www.
icicisecurities.com and www.investmentbank.kotak.com respectively. Potential investors should note that investment in equit y shares involves a high degree of risk and for details relating to the
same, refer to the Red Herring Prospectus which may be filed with the Registrar of Companies in future, including the section titled Risk Factors. Potential investors should not rely on the DRHP
filed with the SEBI in making any investment decision.
Disclaimer: AGS Transact Technologies Ltd. is proposing, subject to applicable statutor y and regulator y requirements, receipt of requisite approvals, market conditions and other considerations,
to make an initial public offer of its equit y shares (Equit y Shares) and has filed a Draf t Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The DRHP is
available on the website of the SEBI at http://www.sebi.gov.in and the websites of the Book Running Lead Managers A xis Capital Limited, Citigroup Global Markets India Private Limited, HDFC Bank
Limited, ICICI Securities Limited and Kotak Mahindra Capital Company Limited at www.axiscapital.co.in, www.online.citibank.co.in/rhtm/citigroup globalscreen1.htm, www.hdfcbank.com, www.
icicisecurities.com and www.investmentbank.kotak.com respectively. Potential investors should note that investment in equit y shares involves a high degree of risk and for details relating to the
same, refer to the Red Herring Prospectus which may be filed with the Registrar of Companies in future, including the section titled Risk Factors. Potential investors should not rely on the DRHP
filed with the SEBI in making any investment decision.