@I{ABARD

Ref. No. N B. DF I BT' / 13305-L3790/D Fl BT-23 / zOtG - t7

Circular No- 292 / DFIBT- 43 /2Ot619 December 2OL6

The Chairman and Managing Director / Chairman / Chief Executive Officer

Scheduled Commercial Banks

Regional Rural Banks

State Co-operative Banks and *

District Central Co-operative Banks

Dear Sir

Pilot project t6 incentivise Aadhaar Based Biometric Transaction through Financial Inclusion

Fund (FlF)

There is thrust on digital transactions and a need to provide an impetus to digital transactions.

Accordingly, NABARD is providing support under FIF for deployment of PoS terminals in one

lakh villages. At present, there are about 15 lakh PoS terminals in India of which most are

located in urban areas. 1O9.L2 crore Aadhaar cards have been issued by UIDAI and a total of

36.70 crore Aadhaar seeding to the Bank accounts have been completed as on.L8 December

2015. Aadhaar enabled payment system (AEPS) is one of the mode by which people can

transact without having debit card and PIN numbers. This is one of the ways of doing financial

transaction suitable especially for rural Indian population. Aadhaar based transactions in

microATMs through AEPS route is well established. The PoS terminals may also be utilized for

financial transactions by using Aadhaar card and biometric authentication.

2. In order to provide impetus to Aadhaar based biometric transactions through the PoS

terminals it has been decided to extend support for a Pilot project to incentivise Aadhaar

Based Transaction through Financial Inclusion Fund (FlF). The proposal envisages an incentive

of O.5% of the transaction value subject to a cap of Rs L0/- per transaction, to be passed on

to the merchant by the lnerchant acquiring bank for Aadhaar based transactions up to

Rs.2000/-.

{Ffrffiftrffiurflilo,rqfuNational Bank for Agriculture and Rural Development

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(fr,Efd, cisr - g''di 6Rtr, ciqr (Td), Td - 400 051 . )R. : +91 2226s3 0024 . $-fl : +9r 222653 0150 . {-i-q , dfibt@nabard.org

Deparbnent of Financial Inctusion & BankingTechnologrplotNo.c-24,'G'Block,Bandra-Kurlac,omplex,Bandra(E),Mumbai-4ooo51 .Tel.:+9rzzz653ooz4.Fax:+9rzzz65go15o.E-mail:dfibt@nabmd.org

Eligible Institutions

All merchant acquiring banks allowing Aadhaar based biometric transactions at poS terminals

are eligible for support under the scheme.

Extent of Support

0.5O% subject to a cap of Rs 10/- per Aadhaar based

bank for passing on to merchants for Aadhaar based

devices at merchant locations.

Duration of Support

The support will be available to Banks from 0L January zo77 tll3 j. March 2017.

3. Other terms and conditions of the Support are:

The operation of the scheme will be for a maximum period of three months i.e from 0LJanuary 2016 till 31 March 2ol7 alongwith the following conditions:

a) The scheme is applicable to Aadhaar based transactions only.b) The Scheme will be initially operational till March 2017 and will be reviewed on a

monthly basis for continuation/modification.It will be reviewed for further extension of three months depending on the availabilityof infrastructure, no. of transactions achieved per day and resource position.Maximum incentive allowed per merchant would be restricted to 10,000 /- per month.Transactions of up to Rs.2000/- will be covered under the scheme.

Reimbursement will be on a monthly basis.

claim to be submitted to NABARD Head office in the given format (Annexure t).

4. Banks are requested to forward the applications at the earliest to NABARD, to expedite

the implementation process with support from FlF.

Yours faithfullv

(Gautam Sen)

Deputy General ManagerEncl.:As above

transaction will be reimbursed to the

transactions undertaken by using poS

c)

d)

e)

f)

s)

(Format for submission of ilaim by the bank - on Bank,s letterhead)

Annexure I

The Chief General Manager........ Head Office

Dear Sir

Pilot project to incentivise Aadhaar Based Biometric Transaction through Financial Inclusion Fund(FlF)- Claim for ..........(month) 2017- (Name of the Bank)

Pfease refer to your circular number ..... dated lQ-Decembe r 2o'J,6 on the captioned subject. ln thisconnection, we request you to sanction and reimburse Rs. ...... for the captioned project. The detailsare as per the following:

Aadhdar Based Biometric Transaction Details

Sr. No Particulars Details1 Total number of merchants acquired by the

Bank

2 Total number of ON-US transactions3 Total number of OFF-US transactions4 Total Transactions5 TotalClaim

3. We have incurred an expenditure of Rs. for paying to merchants for transactionsundertaken by using Pos devices through Aadhaar Based Biometric Transaction at merchant locations.We certify the following:

a) that the transactions given at the table above are Aadhaar Based Biometric Transactions.b) maximum incentive allowed per merchant has been restricted to Rs. 10,00 o/- per month.c) transactions of up to Rs.2oOo/- has only been covered under the claim.d) Actual incentive @ 05% of transaction value with a maximum of Rs.10/- per transaction onlyhas been claimed,

we request you to kindly reimburse an amount of Rs............., for paying to merchants for transactionsundertaken by using Aadhaar Based Biometric authentication at pos devices at the merchant locations

Yours faithfully,

Name of authorized Officer:Designation:

Name of the Bank:

Date:

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