ICICI Bank to Issue Common Payment Card Solution for Bhubaneswar

By Odisha Story Bureau, Bhubaneswar:

Government of Odisha, on Monday, the 4thof September 2017, approved selection of ICICI Bank as the successful financial institution for implementation of Common Payment Card System in the city of Bhubaneswar. ICICI Bank, as the implementing agency will be making an investment of approximately Rs. 20 Crores for the city wide implementation of the system.

The Common Payment Card System (CPCS) is one of the modules forming part of the Pan City Smart Solutions in the Smart City Proposal of Bhubaneswar.Under this module, it is proposed to implement an interoperable and integrated electronic payment ecosystem forcitizens, visitors and businesses in the city by making common smart card and mobile wallet based payment system accessible to the userson 24X7 basis. It shall enable access to single electronic payment instrument to all strata’s of society and from every corner of the city.

This system shall facilitate all citizen service payments across the City including bus and para-transit payments, parking payments, municipal service payments, utility payments, etc. through an Open-loop based fare card and mobile applications apart from other payment modes approved by Reserve Bank of India. As part of the project, the bank will design and make available at least 5 lakh smart cards under this system. The citizens, visitors and other users will be able to buy the card through payment of a minimum top up of Rs. 200/- per card. A one-time fee of Rs. 50/- per card shall be retained by the Bank as cost towards the card.Further with an aim to create doorstep delivery of payment services, the implementation also comprises of installation of 325 Point of Sale (POS) machines, at government premises and in partnership with private entities, retailers &other merchants at a grid of 500m in the city.

The solution has been designed based on Rupay Specifications which shall be efficient and cost effective for the citizens and the merchants (government as well as private) availing the facility of Common Payment Card System. The system shall also: –

  1. Conform to national recommended standard – National Common Mobility Card (NCMC)
  2. Offer inherent interoperability
  3. Be based on common banking system and regulations
  4. Provide higher availability and accessibility of services
  5. Enable universal usage – ecommerce, retail points and others
  6. Aid financial inclusion initiative
  7. Aid Digital India Initiative
  8. Result in lower technology and regulatory cost to implementing agency

In-order to meet diverse need of citizens and application, following payment media types have been included as part of the project: –

  1. Open loop EMV/RuPay with Contactless Smartcards
  2. Unstructured Supplementary Service Data (USSD)
  3. Aadhar Enabled Payment System (AEPS)
  4. Unified Payment Interface (UPI)
  5. Physical Point of Sale (POS)
  6. Mobile Wallet integrated with pre-paid account
  7. Internet Banking
  8. Mobile Banking
  9. Micro ATMs
  10. QR Code based transactions
  11. Mobile application based ticketing using QR code and NFC in future

Before the start of project tendering process, a workshop of potential bidders was conducted on 16th December 2016 in Bhubaneswar and invitation was sent to more than 23 scheduled banks and 16 electronic payment wallet companies. The workshop was attended by banks, technology integration partners, payment wallet companies and other technological service providers.

Based on the recommendations received during workshop from leading banks of India, National Payment Corporation of India and experiences learned from similar projects being implemented in other cities like Ahmedabad, Surat, Kochi, Bangalore etc., the project was structured for implementation under Public Private Partnership (PPP) mode wherein all the cost towards implementation of project shall be borne by the successful bank. In lieu of their investments, the bank would levy a transaction charge as evaluated from the bid process. The transaction charge would be borne by the merchants availing the services of Common Payment Card System and no cost towards transaction charges shall have to be borne by the citizens, commuters or other payers in this system.

The Request for Proposal from potential bidders were invited in the month of February 2017 and after several rounds of discussions with interested banks, the bidding process and evaluation was completed in the month of July 2017. Three banks namely, AXIS Bank, ICICI Bank and YES Bank participated in the bidding project. After technical evaluation, having found all the three banks to be technically qualified as per the terms and conditions of tender, the quotes towards the transaction charges received from ICICI Bank, YES Bank and AXIS Bank were 1.45%, 1.6% and 9.0%, respectively.

ICICI Bank having quoted the lowest bid and found responsive as per other terms and conditions was approved as the successful bidder by Empowered Committee on Infrastructure (ECI), the apex authority constituted under the chairmanship of Chief Secretary Odisha for approval of PPP projects in the state.

The implementation of the system is estimated to complete within a period of 7 to 8 months and also includes an operation and maintenance period of 7 years. It is expected that the Common Payment Card will be launched within a period of 4 to 5 months in the month of January, 2018.