The 70%/30% Vision Document-Part 1

The 70%/30% Vision Document-Part 1

Part 1:-

Is the 70% Electronic-30%Paper a realistic target ?

          Today I am starting a new series of Posts. The Series Title is the “The 70%/30% Vision Document”

 This is in line with the Vision of  Shri.Hota, CEO of NPCI National Payments Corporation of India.

In this Series, I would be concentrating as to what marketing methodologies can be adapted to convert India’s Current Payment Ratio of 30% Electronic-70%Paper to 70% Electronic-30%Paper in the next 5 years.

First of all, is the 70% Electronic-30%Paper a realistic target?

Yes, in my opinion this is a realistic target. This is within the availability of resources in our country, within the knowledge in our country and within a time-frame of 5 years.

What do electronic payments constitute?

Electronic Payments means movements of funds via Real Time Gross Settlement (RTGS)/National Electronic Funds Transfer (NEFT)/Electronic Clearing Service (ECS)-both Credit and Debit Variants/ATM’s.

Mobile Banking/Internet Banking can also be an indirect part of Electronic Payments, though funds transfer within Banks will again be a part of RTGS/NEFT.

Payment System, can said to be supporting system for  transfer of funds from suppliers (savers) to the users (borrowers), and from payers to the payees, usually through exchange of debits and credits among financial institutions.

It consists of a paper-based mechanism for handling checks and drafts, and a paperless mechanism (such as electronics funds transfer) for handling electronic commerce transactions.

As long as the human society survives, the need for a Payment System will be there.

To achieve any objective a mix of persuasion and official directions are necessary.

When persuasion fails than official directions might do the trick.

Apart from Individuals, who are the main components of the Payment System i.e who order funds to be transferred from one Bank Account to another Bank Account.

I will divide this into 2 parts i.e The Receiving part and the Giving part.

GIVING PART:_

01)  The Banks themselves.

02) Mutual Funds.

03) Insurance Companies.

04) All Salary Disbursements whether Government or private.

05) Telecom Companies.

06) Dividend Payouts by Public Companies.

07) Media Houses.

08) Finance Companies.

Receiving Part:-

01)  The Banks.

02)  Mutual Funds.

03) Insurance Companies.

04) Government -  Taxes.

05) Telecom Companies.

06) Dividend Payouts by Public Companies.

07) Media Houses.

08) Finance Companies.

09) Oil Companies.

10)  Stock Exchanges.

The above list is only a sample and not an exhaustive. Readers are welcome to suggest any additions to the above list.

Over the next couple of months I will be writing in detail, the mechanism through which the  Current Payment Ratio of 30% Electronic-70%Paper can be moved  to  70% Electronic-30%Paper, in  each sector.