Saturday, May 23, 2015

Indians are ready for Overdraft on eWallet


          Today’s Post is inspired by Bajaj EMI Card and Pumpkart.com.

EMI option is old fashioned. It is less customer friendly as compared to Overdraft facility.

          Bajaj EMI facility is currently available only for offline purchases.  Pumpkart EMI is available for products sold on Pumpkart.com.

          A build in overdraft facility on eWallets will lead to a boom in the eWallet holders numbers.

          The number of eWallets in India is on the increase. A corresponding increase in transactions is also seen.

          eWallet business is just taking off in India, hence special promotional schemes are in fashion.

          The business model is almost in place.

The respective finance companies have to tie-up with eCommerce Sites for customers to access this facility at eCommerce Sites.

Below is the business model. This model is best suited for Pan India finance companies.

01)   Introduce eKYC features.

02) The eKYC option can be offered in the companies’ premises.

03) Or the sales team can complete the eKYC formalities at the customer’s location.

04) Arrive at the Overdraft eligibility.

05) Load the Overdraft limit on to the eWallet.

A more detailed version can be shared with interested parties.

Which eWallet Player will take the lead? We Indian eCommerce shoppers will support you.
The below table shows the growth of mWallets in India.









No. 43: Payment System Indicators
System
Volume (Million)
Value (` Billion)
2014-15
2015
2014-15
2015
Jan.
Feb.
Mar.
Jan.
Feb.
Mar.
1
2
3
4
5
6
7
8
6 Prepaid Payment Instruments (PPIs)
314.46
33.49
30.31
54.10
213.42
23.65
24.42
29.80
6.1 m-Wallet
255.00
27.62
24.08
46.11
81.84
8.92
8.76
10.82
6.2 PPI Cards
58.91
5.82
6.19
7.94
105.35
12.59
13.64
16.24
6.3 Paper Vouchers
0.55
0.05
0.04
0.06
26.24
2.13
2.01
2.74






Tuesday, May 19, 2015

Payment Companies gather in Mumbai-India


National Payments Corporation of India (NPCI) the umbrella organization for all retail payments system in the country, is organizing first-of-its-kind International Conference in India wherein thought leaders of the national-level retail payment systems from 17 countries will partake and share their best practices during a two-day event to be held during May 21-22, 2015 in Trident, BKC, Mumbai.

            Objective: To share the best practices for growth of CashLess Payments in their country.

            Participants:  Thought leaders of the national-level retail payment systems from 17 countries across the world.

            Major Participants:
UnionPay International (China): - UnionPay International

Discover Financial Services (USA):- Discover Card, Discover Bank, Discover Home Loans

            Japan Credit Bureau (Japan):-  JCB Cards

            Vocalink (UK):- Payments and ATM

            Interac Association (Canada):-  Interac Cash, Interac Debit, Interac Flash

EFTPOS Payments (Australia):-  eftpos Hub, eftpos ATM Service, eftpos Chip and Contactless ,  eftpos Online, eftpos Mobile

Malaysian Electronic Payment System (Malaysia):- MEPS ATM, Shared ATM Network, Smart Card Services, Currency Notes Processing, Cash Management Services
Interswitch (Nigeria):- Payment Cards, Tokens,  


LankaClear (Sri Lanka):- SL Rupee Cheque Clearing,SL Interbank Payments,Common Card & Payment Switch (CCAPS),Digital Certification Authority (LankaSign),USD & SL Rupee Draft Clearing

Wednesday, May 13, 2015

RBI imposes penalty on Sri Ganesh Co-operative Bank Ltd., Gulbarga, Karnataka



The Reserve Bank of India has imposed a monetary penalty of 15.00 lakh (Rupees Fifteen lakh only) on Sri Ganesh Co-operative Bank Ltd., Gulbarga, Karnataka.

The monetary penalty is for violation of Reserve Bank of India’s instructions for violating Know Your Customers (KYC)/Anti Money Laundering (AML) Guidelines in issuing ‘at par cheques’ to large number of walk-in-customers by intentionally structuring them below 50,000/-.

RBI also observed that it had opened benami accounts and allowed huge cash deposits in such accounts.

Tourist spots in Gulbarga can be viewed here.


Taste of Gulbarga cuisine can be viewed here.

Tuesday, May 12, 2015

11 steps for CashLess Tirumula


          On an average 2.5 crore pilgrims every year visit Lord Venkateswara @ Tirumula.

          The Tirumala Hill is 853m above sea level. It comprises seven peaks, representing the seven heads of Adisesha, thus earning the name Seshachalam.

          Click on this link for up to data on pilgrim flow to Tirumula.

          Tirumula economy is a closed economy as most of the services are offered to the pilgrims through TTD Trust.

          The overall revenue of the temple during 2013-14 was INR 2,263 crore. This is likely to be INR 2,401 crore during the current financial year.

          The following are 11 steps for CashLess Tirumula

01)  Software partner TCS to be given mandate to develop a CashLess ecosystem too.

02) Pilgrims at entry points to Tirumula be offered Prepaid cards

03) The Biometric Band can be converted into a Prepaid wallet

04) 3-4 service providers can be chosen to implement the CashLess ecosystem. This is to encourage competition.

05) Balance in Tirumula Prepaid Cards  at the end of Tirumula Darshan, be converted as Donation to Lord Venkateswara.

06) Option to order Tirumula Prepaid Cards online while booking Sevas/Accommodation etc

07) Open priority counters to pilgrims holding Tirumula Prepaid Cards

08) Provide wide publicity through social media

09) Maximum balance in TPc to be capped at INR5000/-

10)  All TTTD employees and associated employees to be provided with Tirumula Prepaid Cards

11)  Insurance coverage @ Tirumula be bundled with Tirumula Prepaid Cards


11 motivational factors for CashLess Transactions @ Tirumula

01)  Closed economy

02) Large number of floating population

03) Average stay of pilgrim ranges from 4 hours to 48 hours

04) Pilgrims already familiar with biometric bands/eSeva/eDonation

05) Less persuasion required for Pilgrims to invest in Prepaid cards

06) Many  vendors can offer CashLess options, as the target audience is enormous

07) High retention power of the pilgrims

08) Ease in translating the vision of Digital India

09) Minimal  persuasion required for ePayment service providers to invest in CashLess Tirumula as  readymade customer pool is available

10)  Reduce  risk associated with handling physical cash


11)  Easy to replicate in other Pilgrim Towns

Monday, May 11, 2015

Reserve Bank of India recommends Banks in India to appoint Internal Ombudsman


          In a major step towards customer centricity, Reserve Bank of India today advised all Public Sector Banks and select private\foreign banks to appoint internal ombudsman.

The internal ombudsman should have the designation of  ‘Chief Customer Service Officer (CCSO)’.

The CCSO should not have worked in the bank in which he/she will be appointed as CCSO.

This initiative is to further boost the quality of customer service and to ensure that there is undivided attention to resolution of customer complaints in banks.

Apart from Public Sector Banks, select private\foreign  banks viz ICICI Bank Ltd., HDFC Bank Ltd., Axis Bank Ltd., Kotak Mahindra Bank Ltd., IndusInd Bank Ltd., Standard Chartered Bank, Citi Bank N.A. and HSBC Ltd., have   been advised to appoint Internal Ombudsman .

The above banks have been selected on the basis of their asset size, business mix, etc.

The Reserve Bank introduced the Banking Ombudsman Scheme (BOS) in 1995.

The aim of this scheme is to provide inexpensive forum for bank customers to resolve their complaints relating to deficiency in banking services.

The bank’s internal ombudsman will be a forum available to bank customers for grievance redressal before they can even approach the Banking Ombudsman.

The Reserve Bank will shortly issue detailed operational guidelines to the banks.


Once the detailed guidelines are in public domain, similar advertisements will appear in the Recruitment columns.

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