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Grant assistance under Financial Inclusion Fund (FIF) for on-boarding of RRBs and RCBs to BHIM UPI Platform
Ref. No. NB.HO.DFIBT/ 7531-7774/ DFIBT-23/ 2018-19                                  04 July 2018
Circular No. 165/ DFIBT–27/ 2018
 
The Chairman / Chief Executive Officer
Regional Rural Banks
State Co-operative Banks 
District Central Co-operative Banks
 
Madam/ Sir,
 
Grant assistance under Financial Inclusion Fund (FIF) for on-boarding of RRBs and RCBs to BHIMUPI Platform
 
Government of India has accorded high priority to financial inclusion for bringing the excluded population in far flung areas into the fold of formal banking so as to usher in faster economic development.  Digital payment infrastructure based on JAM trinity (Jan dhan accounts,  Aadhaar Number and Mobile phone) is considered to be a promising and effective means to achieve the objectives of financial inclusion.  The Regional Rural Banks (RRBs) and Rural Cooperative Banks (RCBs) are largely servicing rural population and encouraging Mobile based banking using Bharat Interface for Money (BHIM) and Unified Payment Infrastructure (UPI) platform would be quite appropriate.  
It has been, therefore, decided to support RRBs and RCBs in on-boarding BHIM UPI Platform to better service rural population possessing mobile phones for conduct of banking transactions like transfer of money and payments to various products and services digitally through BHIM App.  BHIM App enables simple, easy and quick payment transactions using the UPI platform. 
 
The scheme to support RRBs and RCBs for on-boarding to BHIM UPI platform under FIF envisages that the Banks having mobile banking license from RBI, could provide select banking services on mobile phone through BHIM UPI without the need for its own Mobile Banking App. The scheme details are as follows:
 
1. Name of the Scheme: The scheme will be known as “On-boarding of RRBs and RCBs to BHIM UPI Platform”.
2. Objective: To provide one-time cost of the software development and implementation, to RRBs and RCBs for on-boarding to the BHIM UPI platform, related security audit and three years maintenance charges.
3. Institutions eligible for support: RRBs and RCBs having Mobile Banking license from RBI and have on-boarded to BHIM UPI platform from 01 April 2017 onwards.
4. Extent of Support: 
i. Support for actual expenditure incurred by the bank up to a maximum of Rs.5.00 lakh per bank.
ii. The support to the RRBs and the RCBs for on-boarding to BHIM UPI platform will be as under:
 
S.No. Agency Extent of Support
 
1 RRBs 80% of total expenditure or Rs. 5.00 lakh (whichever is lower) per bank
2 RCBs 90% of total expenditure or Rs. 5.00 lakh (whichever is lower) per bank
100% of the total expenditure or Rs. 5.00 lakh (whichever is lower) per bank, for eligible institutions in North Eastern Region, Sikkim, Jammu & Kashmir, Uttarakhand, Himachal Pradesh, Chhattisgarh, Jharkhand and Andaman & Nicobar Islands.   
 
5. Sanction and Claim process:
i. For on-boarding to BHIM UPI with security audit and maintenance for three years; Banks may incur the related expenditure in following three ways: one-time charge only, monthly charges only or a mix of one-time and monthly charges. 
ii. The scheme is open for eligible banks which have on-boarded to BHIM UPI platform from 01 April 2017 onwards. 
iii. The Bank may send the proposal in the prescribed format for sanction (Annexure – I) and claim (Annexure II) to the respective Regional Office (RO) of NABARD. Claim may be made in a maximum of three annual installments, on reimbursement basis (after the payment is made to the vendor). The last date for submission of final claim is 30 June 2022.
 
6. Security Aspects:
In view of the Customer protection guidelines limiting the liability of customers on account of unauthorized transactions, the Bank may ensure that all the security aspects of maintaining and on-boarding BHIM UPI are taken care of adequately. The Bank seeking grant support would be required to undertake audit of security aspects of the application by an authorized security audit agency. 
 
7. Other terms and Conditions:
 
i. The assistance may only be utilized towards cost for on-boarding BHIM UPI platform developed by NPCI. It includes one-time cost of software development, related security audit and implementation along with maintenance charges for three years.  
ii. The on-boarding to BHIM UPI and its operation should conform to the standards and guidelines mandated by NPCI and any other agency in this regard. 
iii. The decision for on-boarding to UPI platform to be approved by the Board of the Bank. 
iv. The financial support, if any, received from any other agency/agencies for on-boarding and maintaining BHIM UPI platform, including related security audit, may be excluded from the claim. 
v. The Bank will accept the terms and conditions of sanctions to be enumerated in the sanction letter.
vi. The Bank will execute a Memorandum of Agreement with NABARD as per Circular No. 52/ DFIBT-05/ 2018 dated 20 March 2018, if not executed earlier.    
vii. The treatment of GST would be governed by Circular No. 87/ DFIBT-11/ 2018 dated 25 April 2018.  
viii. The Bank may preserve the original invoice, receipts, agreements, etc., related to the procurement for any future requirement by NABARD. 
ix. The Bank will facilitate any monitoring /evaluation of the project to be taken up by NABARD through its own officers or some other agency. 
x. The Bank will follow due diligence for procurement / awarding contracts and comply with statutory and regulatory guidelines on outsourcing.
 
Yours faithfully, 
(L.R. Ramachandran)
Chief General Manager
Encl: As above
Endt. Ref No.NB.HO.DFIBT/ 7776-7810/ DFIBT-23/ 2018-19 of date
Copy forwarded for information and necessary action to:
1. The Secretariat of Chairman, NABARD, HO, Mumbai.
2. The Secretariat of DMD (HRD), NABARD, HO, Mumbai.
3. The Secretariat of DMD (RA), NABARD, HO, Mumbai.
4. The Principal/Director/Joint Director, All Training Establishments.
5. The Chief General Manager/Officer-in-Charge, NABARD, All Regional Offices.
6. The Chief General Manager, IDD, NABARD, HO, Mumbai.
7. The Chief General Manager, CPD, NABARD, HO, Mumbai.
8. The Chief General Manager, DoS, NABARD, HO, Mumbai.
(Pankaj Kumar)
Deputy General Manager
Annexure-I
(Format for submission of Proposal by RRB/ RCBs - on Bank’s letterhead)
The Chief General Manager
NABARD
…….. Regional Office 
Madam/ Sir,
Grant assistance under Financial Inclusion Fund (FIF) for on-boarding of RRBs and RCBs to BHIM UPI Platform – Proposal for Sanction
Please refer to your circular number ….. dated … July 2018 on the captioned subject. In this connection, we request you to sanction an amount of Rs. ……………. for on-boarding to BHIM UPI platform, related security audit and three years maintenance charges. The total estimated expenditure for the captioned project is Rs. ____ .  The details are as follows: 
S. No. Particulars Details
1 Name of Bank
2 State
3 Date of Board approval/ will be submitted to Board for approval* for opting to on-board BHIM UPI
4 Date of applying/ obtaining* Mobile Banking license from RBI
5 Date of applying/ obtaining* BHIM UPI on-boarding confirmation from NPCI?
6 Details of proposed expenditure:
S. No. Item Cost/ Fee (Rs.) Remarks
(i)
(ii)
…..
7 Total financial outlay of the project Rs.
8 Support received from other agency/ agencies Rs.
9 Total support sought under FIF (less support received from other agency/agencies) Rs. 
We hereby certify the following:
i. The assistance will be utilized towards cost of on-boarding BHIM UPI platform developed by NPCI. It includes one-time cost of software development, related security audit and implementation along with maintenance charges for three years.  
ii. The on-boarding to BHIM UPI and its operation should conform to the standards and guidelines mandated by NPCI and any other agency in this regard. 
iii. The decision for on-boarding to BHIM UPI platform will be / has been* approved by the Board of the Bank. 
iv. The Bank will submit the claim in the prescribed format in a maximum of three annual installments, on reimbursement basis (after the payment is made to the vendor) within the stipulated deadline. 
v. The Bank has undertaken necessary audit of security aspects of the application by an authorized security audit agency.
vi. The financial support, if any, received from any other agency/ agencies for on-boarding and maintaining BHIM UPI platform, including related security audit, will be excluded from the claim. 
vii. The Bank will accept the terms and conditions of sanctions to be enumerated in the sanction letter.
viii. The Bank will execute a Memorandum of Agreement with NABARD as per Circular No. 52/ DFIBT-05/ 2018 dated 20 March 2018, if not executed earlier.    
ix. The treatment of GST would be governed by Circular No. 87/ DFIBT-11/ 2018 dated 25 April 2018.  
x. The Bank will preserve the original invoice, receipts and agreements etc., related to the procurement, for any future requirement by NABARD. 
xi. The Bank will facilitate any monitoring /evaluation of the project to be taken up by NABARD through its own offices or some other agency. 
xii. The Bank will follow due diligence for procurement / awarding contracts and comply with statutory and regulatory guidelines on outsourcing.
*Strike out whichever is not applicable
 
Yours faithfully,
 
Name of authorized Officer: 
Designation: 
Name of the Bank:
Date:
Annexure-II
 (Format for submission of Claim by RRB/RCB - on Bank’s letterhead)
The Chief General Manager
NABARD
…….. Regional Office 
 
Madam/ Sir,
 
Grant assistance under Financial Inclusion Fund (FIF) for on-boarding of RRBs and RCBs to BHIM UPI Platform – Claim for Reimbursement
Please refer to your sanction letter number ….. dated … …2018 on the captioned subject. In this connection, we request you to reimburse an amount of Rs. ……………. for on-boarding to BHIM UPI platform, related security audit and  three years maintenance charges. The total expenditure for the captioned project is Rs. ____ .  The details are as per the following: 
S.No. Particulars Details
1 Name of Bank
2 State
3 Date of Board approval for opting to on-board BHIM UPI
4 Date of obtaining Mobile Banking license from RBI
5 Date of on-boarding BHIM UPI as confirmed by NPCI
6 Details of expenditure:
S.No. Item Cost/ Fee (Rs) Remarks
(i)
(ii)
…..
7 Total financial outlay of the project Rs.
8 Support received from other agency/agencies Rs.
9 Total grant support sought on reimbursement basis under FIF (less support received from other agency/agencies) Rs. 
 
We hereby certify the following:
 
i. The assistance has been utilized towards the cost for on-boarding BHIM UPI platform developed by NPCI. It includes one-time cost of software development, related security audit and implementation along with maintenance charges for three years.  
ii. The on-boarding to BHIM UPI and its operation conform to the standards and guidelines mandated by NPCI and any other agency in this regard. 
iii. The decision for on-boarding to UPI platform has been approved by the Board of the Bank. 
iv. The Bank has submitted the claim in the prescribed format and it is the I / II / final* annual installment, on reimbursement basis (after the payment is made to the vendor) within the stipulated deadline. 
v. The financial support, if any, received from any other agency/ agencies for on-boarding and maintaining BHIM UPI platform, including related security audit, has been excluded from the claim. 
vi. The Bank accepts the terms and conditions of the sanction as enumerated in the sanction letter.
vii. The Bank has executed a Memorandum of Agreement with NABARD as per Circular No. 52/ DFIBT-05/ 2018 dated 20 March 2018.  
viii. The treatment of GST is as per Circular No. 87/ DFIBT-11/ 2018 dated 25 April 2018.  
ix. The Bank will preserve the original invoice, receipts, agreements etc. related to the procurement for any future requirement by NABARD. 
x. The Bank will facilitate any monitoring /evaluation of the project to be taken up by NABARD through its own offices or some other agency. 
xi. The Bank has followed due diligence for procurement / awarding contracts and complied with statutory and regulatory guidelines on outsourcing.
 
*Strike out whichever is not applicable
 
Yours faithfully,
Name of authorized Officer: 
Designation: 
Name of the Bank:
Date