Freedom Rewardz-State Bank Group’s Debit Card Rewards Program

Freedom Rewardz-State Bank Group’s Debit Card Rewards Program

Please refer my post, http://prashantnepayments.blogspot.com/2009_04_01_archive.html, wherein I had, forecasted that the new marketing mantra, for banks, will be Debit Card Incentives.

Well, State Bank Group, today kicked off the same, under the Brand Name-Freedom Rewardz.

State Bank of Group has released large advertisements, in leading newspapers.

However, as of now, i.e 7.37 IST, 31/05/2009, no message regarding Freedom Rewardz, is visible on the main page of State Bank of India website.

Trust State Bank Group will also advertise the -Freedom Rewardz Program, through Electronic Media also.

FreedomRewardz is a Rewards Program launched for State Bank Group Debit Card customers. FreedomRewardz, will help you to earn points whenever you choose to buy a product or pay for a service using your State Bank Group Debit Card.

I was expecting, a foreign to launch India’s first Debit Card Incentive Program. However, State Bank Group, has taken the lead, and no doubt, will reap the benefits of the first move.

Kudos to State Bank Group for daring to test new methods to attract and retain customers.

How to remit Credit Card Dues thru NEFT

The usage of Credit Cards is on the increase in our country. At the same time, credit card holders are searching for new payment avenues, of their credit card dues.

The common options, to pay the credit card dues, are

01) Deposit of Cash-though banks are now levying a Service Charge for cash deposits, to clear credit card dues.

02) Standing Instruction (SI) to debit an Current/Savings/Overdraft Account, within the Card Issuing Bank.

03) Debit account in other bank, and remit the funds to the credit card, through Net Banking. This facility is popular amongst ICICI Bank credit card holders.

04) Last but not the least, through Cheque/Demand Draft.

Apart from the above, one new Payment option, is becoming quite popular. This option is the payment of credit card dues, through NEFT,

This facility is available from any bank that has enabled the NEFT capability on its Internet banking facility.

The following are to be kept handy, while initiating a NEFT Transaction, for payment of credit card dues.

Name of Destination Bank Compulsory

Destination Branch Compulsory

Type of Destination Account Credit Card, if the same is available on your bank’s Internet Banking site

Number of Destination Account Your 16-digit credit card number(double check this number, wrong mentioning of the number, might lead to credit’s to your enemy’s credit card!!

Transaction Code 52

IFSC Code Compuslory. This will be provided by your Card Issuer, on the Credit card statement, or be available on the Banks website.

IFSC’s for Credit Card transactions, sourced from the Bank’s Websites/Internet are provided here.

Many major Credit Card Issuers viz., Andhra Bank, State Bank of India, have not yet joined this payment mode.

Name of the Bank	NEFT IFSC Code for Credit Card Dues
AXIS BANK	NEFT IFSC Code for Axis Bank Credit Card Dues-- UTIB0000400
VIJAYA BANK	NEFT IFSC Code for VIJAYA BANK Credit Card Dues – VIJB0009020
HDFC BANK LTD.	NEFT IFSC Code for HDFC BANK LTD.Credit Card Dues— HDFC0000240
BANK OF INDIA	NEFT IFSC Code for BANK OF INDIA Credit Card Dues— BKID0000101
CANARA BANK	NEFT IFSC Code for CANARA BANK Credit Card Dues – CNRB0001912
THE BANK OF RAJASTHAN LTD	NEFT IFSC Code for THE BANK OF RAJASTHAN LTD Credit Card Dues -- BRAJ0004430
ICICI BANK	NEFT IFSC Code for ICICI BANK Credit Card Dues – ICIC0000103
DEUTSCHE BANK	NEFT IFSC Code for DEUTSCHE BANK Credit Card Dues – DEUT0784PBC
BARCLAYS BANK	NEFT IFSC Code for BARCLAYS BANK Credit Card Dues – BARC0INBBIR
KOTAK MAHINDRA BANK	NEFT IFSC Code for KOTAK MAHINDRA BANK Credit Card Dues – KKBK0000958
ABN AMRO BANK	NEFT IFSC Code for ABN AMRO BANK Credit Card Dues – ABNA0200001
STANDARD CHARTERED BANK	NEFT IFSC Code for STANDARD CHARTERED BANK Credit Card Dues – SCBL036001

Remember:

Choosing a wrong IFSC code will result in delay or cancellation of your funds transfer.

You need to make your credit card payment at least two business days before the due date.

The terms and conditions of the Internet banking facility of your bank will apply.

The NEFT facility is subject to the rules and guidelines of Reserve Bank of India, as applicable from time to time.

Tips to ensure that the Credit Card Dues remitted by your, through NEFT reach safely:-

• Initiate an initial transaction of Rs.100/-
• After 48 hours, call up the customer care number, of your Credit Card Issuer, and conform, the receipt of the funds
• Once the initial test transaction is successful, preserve the details.
• The same details to be used for every NEFT funds transfer to your credit card.
• After every NEFT funds transfer to your credit card, mail the details with the NEFT Reference Number, to the customer care email id of your Credit Card Issuer, with a request to conform receipt of the funds.

Spread the Joy of ePayments amongst your friends, relatives.

CAUTION: THE ABOVE GUIDELINES is for informational purposes only. I make no representations as to accuracy, completeness, currentness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use.

Two-Tier Authorization for ePayments-RTGS

             Two-Tier Authorization for ePayments-RTGS

            It is the norm of civilization, that all key actions, should follow the Maker-Checker Concept. 

Maker-checker (or Maker and Checker, or 4-Eyes) is one of the central principles of authorization in the Information Systems of financial organizations.

The principle of maker and checker means that for each transaction, there must be at least two individuals necessary for its completion. While one individual may create a transaction, the other individual should be involved in confirmation or authorization of the same. Here the segregation of duties plays an important role. This minimizes the risk, to the individuals, as well as to the Organizations at large.      However, it is observed that the Maker-Checker Concept, is not followed in the true sense. This leads to mishaps all around.

             The scenario in ePayments is also no different. A good number of times, it is observed that in the System, the Maker-Checker concept is followed, but in reality, the maker and checker is the same physical person!

             The strengthening of the Maker-Checker Concept in ePayments, will go a long way, in reinforcing the common man’s belief in ePayments.

             Reserve Bank of India, vide its Notification RBI/2008-09/437, DPSS (CO) RTGS No.1839 / 04.04.002 / 2008 – 2009, dated April 20, 2009, advised all Banks to toughen the Security Environment. Accordingly, it has been made mandatory for the members to put in place maker-checker facility during data entry.

 Further, it has also advised that the IT Security should be foolproof and the internal control systems strong enough to counter frauds / attempted frauds in the RTGS system.

             The full notification, can be accessed at http://www.rbi.org.in/scripts/NotificationUser.aspx?Mode=0&Id=4937.

             Reserve Bank of India, vide its above Notification, has assured the common man, that IT Security/User Security, for ePayments, is maintained at the highest possible standards, by Indian Banks.

 

 

 

             

RTGS: Customer Transactions, not to be routed in Interbank Session, warns Reserve Bank of India.

            RTGS: Customer Transactions, not to be routed in Interbank Session, warns Reserve Bank of India.

                         In RTGS, there are two types of Transactions 01) Customer and 02) Interbank Transactions.

            Customer transactions refer to those types of transactions, wherein the beneficiaries customer’s account, in the Beneficiary Bank is directly to be credited.

             Interbank Transactions refer to those types of transactions, wherein the Beneficiary is a bank, and internal accounting entries are effected, to the respective bank department.

            The Operating Session for Inter-bank, is longer than the Operating Session for Customer transactions,.

            Ideally, customer transactions, are not to be routed through inter-bank session, as the RTGS credit has to be afforded within 90 mintues, or  be returned back.

In the initial stages, when RTGS was evolving, Banks use to route customer transactions, in inter-bank session also.

             However, this practice, was being followed, even after Reserve Bank of India, extended considerably, the window for the Customer Session, vide its notification, RBI/2008-09/362, DPSS (CO) RTGS No.1288/04.04.002/2008 – 2009, dated January 28, 2009.

           The reasons could be: A) Accommodate High-Value Clients. B) Technical reasons, viz system failure of the respective Sending Bank, during Customer Session.

            Reserve Bank of India, has sought to plug the practice of routing customer transactions, in inter-bank session, through it’s Notification:- RBI/2008-09/476 DPSS (CO) RTGS No.1959/04.04.002/2008-2009, dated  11^th May, 2009.

The said notification, can be accessed at http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=4982&Mode=0                                      

 Reserve Bank of India, vide its above Notification, warned banks of penal actrions, in case customer payments are routed through inter bank session.

QUOTE:-

All RTGS participants are, therefore, advised to strictly adhere to the RTGS procedural guidelines and desist from the practice of pushing customer transactions in the inter-bank mode. ''Violations, if any, brought to our notice would be viewed seriously and would attract penalty under Section 30 of the Payment and Settlement Systems Act, 2007(51 of 2007),'' the Circular said.

UNQUOTE

Tit-Bits:Payment of Interest on Savings Bank Account on a Daily Product Basis – windfall to ePayments

  Payment of Interest on Savings Bank Account on a Daily Product Basis – windfall to ePayments.

A safe and easy way to save your money is with a bank savings account.  A bank savings account allows you to deposit money (add money to your account) or withdraw money (remove money from your account) at any time.  In return for keeping your money at the bank, the bank pays you money, also known as interest.

Interest will be earned on the money you have on deposit at the bank.  Since you may deposit or withdraw money each day, the bank will calculate how much money you should receive in interest.  You will also receive a periodic statement from the bank listing your deposits, withdrawals, interest, and account balances.  

 At present, in our county, interest on savings bank accounts is calculated on the minimum balances held in the accounts during the period from the 10th day to the last day of each calendar month. Several banks have suggested that interest on savings bank accounts may be calculated either on the minimum balances in the deposit accounts during the period from the first to the last day of each calendar month or on a daily product basis. 

Some Banks have also opined, that the Interest Rate Structure on Saving Bank Accounts, be de-regulated. However, Reserve Bank of India is not in favor of de-regulation. The de-regulation, would have led, to severe competition amongst the Banks. Few Banks, would have offered, a higher rate of interest, but would have set-off their interest losses, by levying service charges

          As a compromise, IBA opined, shifting to the international norm of payment of Interest, on Daily Balances. However, this could be possible, only after massive computerization of the Banking Industry.

           Now, that the Banking Industry, is computerized, to a very large extent, Reserve Bank of India, vide its notification RBI/2008-09/452,DBOD. No. Dir. BC.128/13.03.00/2008-09, dated April 24, 2009, advised Banks to Pay Interest on Savings Bank Account on a Daily Product Basis.

         The above rule will be effective from 01/04/2010. The full notification can be accessed at http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=4949&Mode=0

  At present, the interest (3.5 per cent per annum) is calculated on the minimum balance held in the account from the 10th of each month to the last day of that month. So, if a bank customer has Rs 1 lakh in his savings account one day and then Rs 100 another day, the minimum balance taken for calculation of interest in the period would be Rs 100. This system, is suited, when the Interest Calculations, are done manually.

But, from April 1, 2010, the interest paid on the savings account will be on the daily minimum balance. Now even the Rs 1 lakh balance in the savings account will earn the customer interest for the number of days it was in SB.
The daily balance method adds each day’s closing balance for the whole calendar month leading to a total value say, P. The interest amount for the month then is P×3.5/36500, computed through one day’s interest on P at 3.5% p.a. This interest will be the same as that worked out based on the average balance of the month.

 

          The above step of Reserve Bank of India, will lead to more customers, to, park their funds in Savings Bank Accounts. More funds in Saving Bank Accounts mean more opportunities for ePayments to boom.

 

 

Nomination Facility to be offered on Net Banking Sites.

            Nomination Facility to be offered on Net Banking Sites.

In this era of Bank Deposits, being the flavor of the Day, Reserve Bank of India, vide its Notification - RBI / 2008-09/ 406, DBOD.No.Leg.BC.114 /09.07.005/2008-09 dt.March 9, 2009, has mandated that Acknowledgement of Nomination and indicating the Name of the Nominee in Pass Books / Fixed Deposit Receipts, be adhered to, in case THE CUSTOMER IS AGREEABLE TO IT. 

            The complete Notification, can be accessed at:-http://www.rbi.org.in/scripts/NotificationUser.aspx?Mode=0&Id=4884

            All Bank Customers, especially those holding Saving Bank/Term Deposit Accounts, should be aware of the above Nomination Notification.

It is to be noted, that only 1 Nomination can be registered for 1 Account. Percentage-wise Nomination is not possible. In case, a Customer desires multiple nominations, one option, is to split the Term Deposits, and nominate a different person, for different Term-Deposit.

Majority of the Banks, now-a-days, are happy dispatching Monthly/Quarterly Statements, instead of Pass-Books. The nominee’s details should be displayed in the Monthly/Quarterly Statements, too.

           As many customers are at ease with Net Banking, Banks as additional feature should allow the Nomination Facility to be availed through their Net Banking Sites.

As an additional precaution, Banks on receipt of the Nomination Request thru Net Banking Channels, can seek a affirmation, by emailing the details to the email id registered with the bank. On receiving the confirmation, within the specified time, the Nomination Request can be processed.

List of IFSC Codes of RTGS Participant Banks

            I have been receiving quite a number of queries, on IFSC Codes of different bank branches.

            IFSC Code, is like the pin code of the Beneficiary account.

The complete list of IFSC Codes, can be obtained

01) At the Reserve Bank of India website.

02) Respective Bank Website.

03) On the Cheque Leaf of the Beneficiary’s Account.

                         

IFSC expands to   Indian Financial System Code (IFSC). IFSC  is being used as the addressing code in user-to-user message transmission. The Payment System Applications such as RTGS, CFMS and NEFT developed by the Reserve Bank of India use these codes. The code consists of 11 Characters - First 4 characters (4A) represent the entity; Fifth position has been defaulted with a ‘0’ (Zero) for future use; and the Last 6 character (6X) denotes the branch identity.

 

For Eg: VYSA00005560, stands for ING Vysya Bank, Indore Branch.

BARB0MAINOF, stands for Bank of Baroda, Main Offce, Baroda

 

I have mentioned here, the IFSC’s of Controlling Units of the Banks.

This can be used as a cross-check, of the Beneficiary’s IFSC Code.

 

List of RTGS Particpants
Bank Name	IFSC Code	IFSC Code starts with
Abu Dhabi Commercial Bank	ADCB0000001	ADCB0
Abhyudaya co-op Bank Ltd.	ABHY0065001	ABHY0
ABN Amro Bank N.V.	ABNA0000001	ABNA0
Allahabad Bank	ALLA0888888	ALLA0
Andhra Bank	ANDB0TRESUY	ANDB0
Bank of America	BOFA0MM6205	BOFA0
Bank of Bahrain & Kuwait	BBKM0000001	BBKM0
Bank of Baroda	BARB0TREASU	BARB0
Bank of India	BKID000PIGW	BKID0
Bank of Maharashtra	MAHB0003007	MAHB0
Bank of Novascotia	NOSC0000MUM	NOSC0
Bank of Rajsthan	BRAJ0003350	BRAJ0
Bank of Tokyo Mitsubishi Ltd.	BOTM0003611	BOTM0
Barclays Bank PLC	BARC0INBB01	BARC0
Bharat Co-Op Bank Ltd.	BCBM0000999	BCBM0
BNP Paribas	BNPA0009066	BNPA0
Canara Bank	CNRB0RTGS01	CNRB0
Catholic Syrian Bank Ltd.	CSBK0000001	CSBK0
Caylon Bank	CRLY0000001	CRLY0
Central Bank of India	CBIN0281102	CBIN0
Chinatrust Commercial Bank Ltd.	CTCB0000001	CTCB0
Citi Bank	CITI000PIGW	CITI0
Citizencredit Co-Op Bank Ltd.	CCBL0209003	CCBL0
City Union Bank Ltd.	CIUB0000082	CIUB0
Corporation Bank	CORP0000920	CORP0
COSMOS Co-operative Bank	COSB0000025	COSB0
Dena Bank	BKDN0999999	BKDN0
Deutsche Bank Ltd.	DEUT0784BBY	DEUT0
Deutsche Securities (I) Pvt.	DSIP0INDBBY	DSIP0
DBS Bank	DBSS0IN0811	DBSS0
Development Credit Bank	DCBL0000037	DCBL0
Dhanalakshmi Bank Ltd	DLXB0000146	DLXB0
Dombivli Nagri Sahakari Bank Ltd	DNSB0000001	DNSB0
DSP Merrill Lynch	DSPM0000001	DSPM0
Federal Bank	FEDB0000379	FEDB0
HDFC Bank LTd.	HDFC0999999	HDFC0
Hongkong & Shanghai Bkg Corpn	HSBC02INDIA	HSBC0
ICICI Bank Ltd	ICIC0TREA00	ICIC0
ICICI Securities & Ltd	ISEC0000001	ISEC0
IDBI LTD.	IBKL0009998	IBKL0
IDBI Capital Market Services Limited	ICMS0000001	ICMS0
Indian Bank	IDIB000C080	IDIB0
Indian Overseas Bank	IOBA0009016	IOBA0
IndusInd Bank Ltd.	INDB0000098	INDB0
ING Vysya Bank	VYSA0000001	VYSA0
Jammu and Kashmir Bank Ltd	JAKA0DEALER	JAKA0
Jankalyan Shakari Bank Ltd.	JSBL0000001	JSBL0
JP Morgan Chase Bank, N A	CHAS0INBX01	CHAS0
Kalupur Commercial Co-op Bank	KCCB0RTGS4C	KCCB0
Karnataka Bank Ltd.	KARB0000001	KARB0
Karur Vysya Bank Limited	KVBL0001260	KVBL0
Kotak Mahindra Bank Ltd	KKBK0000632	KKBK0
Krung Thai Bank PCL	KRTH0INBB01	KRTH0
Maharashtra State Co-operative Bank Ltd.	MSCI0082002	MSCI0
Mashreq Bank	MSHQ0000001	MSHQ0
Mizuho Corporate Bank Ltd.	MHCB0000532	MHCB0
New India Co-op Bank Ltd	NICB0000001	NICB0
North Kanara G.S.B. Co-Op. Bank Ltd.	NKGS0000001	NKGS0
Nutan Nagarik Sahakari Bank Ltd	NNSB0000001	NNSB0
Oman International Bank SAOG	OIBA0000001	OIBA0
Oriental Bank of Commerce	ORBC0100000	ORBC0
PNB Gilts Limited	PNBG0000001	PNBG0
Punjab & Maharshtra Co-Op Bank	PMCB0000001	PMCB0
Punjab & Sind Bank	PSIB0000001	PSIB0
Punjab National Bank	PUNB0244200	PUNB0
Ratnakar Bank Ltd.	RATN0000070	RATN0
Reserve Bank of India	RBIN0RBIPI0	RBIN0
Saraswat Co-operative Bank Ltd.	SRCB0000092	SRCB0
SBI DFHI Ltd.	SBDF0000001	SBDF0
Securities Trading Corporation of India Ltd.	STCI0000001	STCI0
Shamrao Vithal Co-op Bank Ltd	SVCB0000001	SVCB0
Shinhan Bank	SHBK0000001	SHBK0
Societe Generale	SOGE0INBB00	SOGE0
South Indian Bank	SIBL0002002	SIBL0
Standard Chartered Bank Ltd.	SCBL0036001	SCBL0
State Bank Indore	STIN0003351	STIN0
State Bank of Hyderabad	SBHY0000600	SBHY0
State Bank of India	SBIN0004343	SBIN0
State Bank of Mauritius	STCB0000065	STCB0
State Bank of Mysore	SBMY0TREA00	SBMY0
State Bank of Travancore	SBTR0000999	SBTR0
State Bank of Bikaner & Jaipur	SBBJ0010303	SBBJ0
State Bank of Patiala	STBP0000758	STBP0
Syndicate Bank	SYNB000RTGS	SYNB0
Tamilnad Mercantile Bank Ltd	TMBL0009999	TMBL0
Thane Janta Shakari Bank	TJSB0000001	TJSB0
The Greater Bombay Co-op Bank	GBCB0000001	GBCB0
The Kapol Co-operative Bank Ltd.	KCBL0000016	KCBL0
The Laxmi Vilas Bank Ltd	LAVB0000883	LAVB0
The W. B. State Coop Bank Ltd	WBSC0000001	WBSC0
UCO Bank	UCBA0000001	UCBA0
Union Bank of India	UBIN0550451	UBIN0
United Bank of India	UTBI0HOA139	UTBI0
UTI Bank Ltd	UTIB0000001	UTIB0
Vijaya Bank	VIJB0009502	VIJB0
Yes Bank Ltd.	YESB0000001	YESB0