1. A Utility Bill Payments Solution byABS Automated Business Services | Private Limited

2. Time to modernize Most banks and other organizations like NADRA are devising new procedures to simplify and automate the Utility Bill payment system:  NADRA has set up kiosks with money accepting machines  Banks are advising customers to use ATM machines  Banks have started accepting bills from their clients for account debits  Banks are also advocating use of their call centers for bill payments All these above mechanisms are a good move forward, but each has its limitation in that an action is required on the part of the consumer each time and it is time consuming. Also each option requires instant account debit. As a result, their use by the general public is very limited and they continue to suffer the hardship of standing in lines in the open to make bill payments. This they must do or else face disconnection. Our Proposal is also based on account debit but with a difference….it is automatic and consumers are not involved, thus they are free from this hassle.

3. ABS Background  ABS, is an IT Enabled Solutions Provider and was founded in 1993  The company was the brainchild of IT specialists committed to modernization of the country’s IT infrastructure (in particular, within the Payment Systems space) Some achievements of ABS include:  ABS conceived, developed and implemented the Automated Clearing House (NiFT), which is now in 12 cities  ABS developed several ACH solutions like Same Day Clearing and Intercity Clearing which have been launched on the NiFT platform  ABS developed the Secure Internet Message Exchange (SIMEX) solution for banks and large enterprise, connecting all of Pakistan on a secure IP platform  ABS principals were instrumental in bringing the International Payment System SWIFT into Pakistan  ABS has developed an electronic remittance system for use by end consumers to remit funds to Pakistan (this will be launched in conjunction with banks)

4. Utility Bills Payment Solution  ABS has developed a system of Auto Debits for the bill payment & settlement function which can be replicated all over the country to cover all urban areas  This system, when rolled out, will make utility bills payment an automatic feature, thus relieving consumers of hardships and colossal time consumptions  Collecting banks can offer an additional platform to customers to pay utility bills (free of charge). Banks will save from operating collection windows.  Daily collections & reporting through the system will result in automatic and efficient reconciliations for the Utility companies  The system allows each bank to provide this service to its own customers

5. The Auto Debit System  Using ABS-configured ISP’s internet network and our secure messaging system we are able to communicate with any end point (bank branch in this case) securely.  Bank branches do not get internet access but only mail accounts for secure communications.  Since each bank will be servicing its own customers only an acceptance letter must be obtained by each bank from its customers to allow auto debits to account for such payment  Details of each consumer regarding bank branch account will be captured on a bank/branch PC through software provided by ABS. This information will be passed on to the ABS servers for processing.

6. DL

7. The Auto Debit walk-through At the Utility Company level: Utility company will print and send bills to consumers as at presentUtility company will print and send bills to consumers as at present Simultaneously utility companies will send electronically the bill details to ABSSimultaneously utility companies will send electronically the bill details to ABS ABS system will add each consumer’s bank branch account detail to electronic bill and sort the entire bill file on due date, bank, branch, account number order. Thus the file will be in ascending due date orderABS system will add each consumer’s bank branch account detail to electronic bill and sort the entire bill file on due date, bank, branch, account number order. Thus the file will be in ascending due date order At the Bank/Branch level: For each due date ABS will prepare a debit list for each bank branchFor each due date ABS will prepare a debit list for each bank branch On each relevant due date ABS will auto check the bank branch PC by polling and then transmit the debit list to relevant branch PCOn each relevant due date ABS will auto check the bank branch PC by polling and then transmit the debit list to relevant branch PC Branch staff will perform debit on accounts as per list, or in online branches this function can be integrated with the ABS systemBranch staff will perform debit on accounts as per list, or in online branches this function can be integrated with the ABS system Debits & Default lists will be completed by branch staff. Complete totals of collection and defaults will automatically be generated by system for onward distributionDebits & Default lists will be completed by branch staff. Complete totals of collection and defaults will automatically be generated by system for onward distribution When complete, branch staff will initiate ‘send’ and the entire list with totals will automatically be transmitted to the ABS servers.When complete, branch staff will initiate ‘send’ and the entire list with totals will automatically be transmitted to the ABS servers. Branch staff can then transfer the total collections to the utility company main account as per branch procedureBranch staff can then transfer the total collections to the utility company main account as per branch procedure

8. Safeguards  Disputes Complaints made for incorrect billing will block the Auto Debit process until resolution.  Consumer Opt Outs Consumer informs his branch and the auto debit is blocked.  Bill Capping The Auto Debit can Cap the maximum allowable limit on each bill based on a % of average billing.

9. Reports ABS will check that all debit lists have been duly completed and returnedABS will check that all debit lists have been duly completed and returned ABS will then sort received files in bank/branch order and prepare complete report of collections and defaults in bank branch order of each bank in the systemABS will then sort received files in bank/branch order and prepare complete report of collections and defaults in bank branch order of each bank in the system Reports will be sent to the banks as well as the utility company and an electronic default list to utility company computer and billing dept for incorporating arrears for next month’s billReports will be sent to the banks as well as the utility company and an electronic default list to utility company computer and billing dept for incorporating arrears for next month’s bill Collection and default information will be fully reconciled automatically and there will be no need for further reconciliationsCollection and default information will be fully reconciled automatically and there will be no need for further reconciliations

10. Benefits to Consumers Consumers will be the greatest beneficiaries as they will not need to come to the bank or remember to pay their bills on time. Payments will be made automatically unless a dispute is registered.

11. Benefits to Banks Banks will be able to provide all their customers a new and efficient Utility Bill Payment solution free of chargeBanks will be able to provide all their customers a new and efficient Utility Bill Payment solution free of charge As auto debit customers increase in numbers the bank collection windows will eventually be closed saving colossal sums of money for operating collection windowsAs auto debit customers increase in numbers the bank collection windows will eventually be closed saving colossal sums of money for operating collection windows Banks will continue to charge the same collection charges from utility companies on each debit as per SBP arrangements.Banks will continue to charge the same collection charges from utility companies on each debit as per SBP arrangements.

12. Benefits to Utility Companies As all collections will be auto reconciled they will not need to spend huge amounts in reconciliation as at presentAs all collections will be auto reconciled they will not need to spend huge amounts in reconciliation as at present The statements received each day being fully reconciled bank payments can be immediate, thus improving their cash flow positionsThe statements received each day being fully reconciled bank payments can be immediate, thus improving their cash flow positions

13. ISP NETWORK

14. Sample: Debit instruction list to branches Back

15. Sample Report of collection from bank branches Amount collected from each branch as per following list Date: 28/6/2006 HBL S.No Branch Code Branch Name Total Amount Collected Total Amount Returned 10024 D H Society 569,66345,325 20015Kharadar788,96525,411 30041 Patel Para 458,89650,212 40051 Mauri Pur Village 255,4782,522 50587 Landhi Korangi 586,69454,472 60785 D H A Branch 744,58514,000 71240Karimabad254,47423,554 81008Hydri457,7757,455 90524 F B Area 223,65425,445 100452 New Karachi 474,47341,001 110658Nazimabad855,62525,447 121058 Gulshan e Iqbal 1,025,47845,000 TOTAL Rs. 6,695,760 6,695,760 359,844 359,844

16. Sample Report of collection from bank branches Amount collected from each branch as per following list Date: 28/6/2006 National Bank Limited S.No Branch Code Branch Name Total Amount Collected Total Amount Returned 10024 D H Society 569,66345,325 20015Kharadar788,96525,411 30041 Patel Para 458,89650,212 40051 Mauri Pur Village 255,4782,522 50587 Landhi Korangi 586,69454,472 60785 D H A Branch 744,58514,000 71240Karimabad254,47423,554 81008Hydri457,7757,455 90524 F B Area 223,65425,445 100452 New Karachi 474,47341,001 110658Nazimabad855,62525,447 121058 Gulshan e Iqbal 1,025,47845,000 TOTAL Rs. 6,695,760 6,695,760 359,844 359,844

17. Sample Report of collection from bank branches Amount collected from each branch as per following list Date: 28/6/2006 United Bank Limited S.No Branch Code Branch Name Total Amount Collected Total Amount Returned 10024 D H Society 569,66345,325 20015Kharadar788,96525,411 30041 Patel Para 458,89650,212 40051 Mauri Pur Village 255,4782,522 50587 Landhi Korangi 586,69454,472 60785 D H A Branch 744,58514,000 71240Karimabad254,47423,554 81008Hydri457,7757,455 90524 F B Area 223,65425,445 100452 New Karachi 474,47341,001 110658Nazimabad855,62525,447 121058 Gulshan e Iqbal 1,025,47845,000 TOTAL Rs. 6,695,760 6,695,760 359,844 359,844

18. Sample Report of collection from bank branches Amount collected from each branch as per following list Date: 28/6/2006 MCB Bank Limited S.No Branch Code Branch Name Total Amount Collected Total Amount Returned 10024 D H Society 569,66345,325 20015Kharadar788,96525,411 30041 Patel Para 458,89650,212 40051 Mauri Pur Village 255,4782,522 50587 Landhi Korangi 586,69454,472 60785 D H A Branch 744,58514,000 71240Karimabad254,47423,554 81008Hydri457,7757,455 90524 F B Area 223,65425,445 100452 New Karachi 474,47341,001 110658Nazimabad85562525,447 121058 Gulshan e Iqbal 1,025,47845,000 TOTAL Rs. 6,695,760 6,695,760 359,844 359,844

19. Total Bank Collections Sample Report Date: 28/6/2006 S. No BankAmount 1 Habib Bank Ltd Rs. 6,695,760 2 MCB Bank Rs. 6,695,760 3 United Bank Limited Rs. 6,695,760 4 National Bank of Pakistan Rs. 6,695,760 Rs. 26,783,040 Total

20. ABS 24/1, 7 th Gizri Lane, Phase IV, DHA Karachi 75500, Pakistan P: 538-8572, 589-1608 | F: 588-7246 | E: netbank@cyber.net.pk netbank@cyber.net.pk www.my-abs.com